I have been trading stocks for some time and gradually discovered that 1) I can only make profits in bullish bull markets 2) My timing of buying at the bottom and selling at the top was flawed and depended only on my sixth sense and feelings gut feelings. So I looked to see if there was anything I could learn and trust to know when is the best time to buy and sell stocks. One day I came across a discipline called Technical Analysis and it fascinated me. This is used by professional traders and remeisiers to understand market sentiment, recognize any chart patterns, and manage risks. There were numerous newspaper ads featuring people who wanted to teach others how to profit from the stock market using technical analysis. I attended a few of these seminars and found out that they cost you at least five thousand dollars to start with. Whether you are successful or not, it all depends on your own skill and experience. I decided not to sign up for any of them; however, I wanted to learn more about Technical Analysis using an alternative way. I went online shopping on Amazon.com and came across this book called “Getting Started with Technical Analysis” by Jack D. Schwager. Many hidden gems are linked in this book. In this book, you can find information about:
- Basic fundamentals like charts and patterns, trend lines, trading ranges and breakouts, support, resistance, oscillators
- Trading techniques such as entering the middle of a trend, stop loss, exit criteria, failed chart patterns
- Trading system as software, design of a trading system, testing and tuning of the system
- Practical trading approach such as trading plan and steps, rules for trading, market observations, trading mastery
After reading this book, I have learned the many areas that make up technical analysis, and it’s not just about looking at charts. I like to recommend this book as a must read for beginners who want to know all about technical analysis and in turn have a better understanding of the markets to make more informed investment decisions. Jack has his own trading company and manages client funds. He is the author of several other books such as “The Complete Guide to the Futures Market” and “Fundamental Analysis”. The many examples are easy to follow and designed to further illustrate the concept in a practical way. Two things I like the most are Jack’s extensive trading experience, he is able to provide an entire chapter solely on real life chart analysis taken from his own trades as well as trading psychology and leveraging behaviors and trends. From the market. The best part is that I have improved my business approach and have applied many of Jack’s teachings. This resulted in better entries and exits that maximize profits and minimize losses. I would have lost more money if I hadn’t gotten this book and relied on hope. Get it now.