Saturday, October 20, 2012

The Art and Science of Technical Analysis

I am more of a fundamental trader and investor than a technical trader, but I do look at charts, and my limited technical analysis helps me make investing decisions. The book The Art & Science of Technical Analysis: Market Structure, Price Action & Trading Strategies by Adam Grimes is the most complete book of technical analysis I have ever seen.

This 463 page guide covers everything from market cycles to trends to breakouts to risk management. My favorite chapter is Chapter 11 called The Trader's Mind. It goes into great detail about the psychological aspects of trading. The trader's emotions can be their undoing. Check out the subsection called Biases Concerning Losses and see what choice you would make. Would you follow logic? In the same chapter, a long list of what to do if you become too aggressive and out of control, putting you on a losing streak.

The book is filled with charts on almost every page, which gives visual example of the concepts covered in the chapters. The books starts with the basics and moves on to all the advanced trading topics. If you want to develop your own methodology to use in finding trading patterns to become more profitable, I highly recommend The Art & Science of Technical Analysis.

By Stockerblog.com

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