a technical analyst who has worked the markets
both shares and commodities I am a glutton for
books on technical analysis. Not always easy to practice,
the subject is even more difficult to explain.
is why coming across a good book on technical analysis
always sends a thrill up my spine. For I know that at
the end of the read, I shall be richer for the wisdom
the authors so generously share.
are two recent rediscoveries (for me) of books that have
been around for some time now and deserve to be on the
top shelves of anybody who practices the difficult art
of trading for a living.
Technical Analysis Plain and Simple
Author: Michael N Kahn
Publisher: FT Prentice Hall / Pearson Education India
Price: Rs 295 Paperback
am a little confused about the opening lines to write
while reviewing this book. The title is apt and misleading
at the same time. Michael Kahn has lived up to his promise
of keeping the book simple so as to be readable to the
lay reader and at the same time put forth dynamic ideas
that veteran writers and other technical analysts knowingly
or unknowingly choose to omit.
some one who could hand-hold you all the way up the slippery
slopes of understanding what technical analysis is all
about. Kahn does precisely that. He takes you step by
step and draws you into the exciting world of technical
analysis, offers you hand holding and provides answers
to questions in anticipation of the questions and queries
that may crop up in your mind after reading each chapter.
there is one summation that I was to wrap up for this
book, I would say, ''it will improve your trading / investment
experience exponentially after you read and implement
what''s in this book.''
touches upon basic doubts like choosing a bar or line
graph and whether you should choose a mathematical scale
or log scale charts. While trading futures, should you
take near month charts or continuous futures charts. He
urges you to look into the jungle rather than the isolated
at the larger picture rather than the half-hour view
a shortcoming that I notice in most budding technical
analysts. This book will not make you a world-class intra-day
trader and Kahn admits as much. But it will teach you
what technical analysis is all about and in simple, jargon-free,
coffee table conversational style that even any full time
housewife will understand.
nuggets I noticed in Kahn''s book cup and handle
formations, triangles, supports, resistance and congestion
points above which securities will zoom or otherwise.
common sense, no-nonsense and down-to-earth style of narrating
and teaching is the strongest point of this book. The
excellent paper quality, binding and cover design are
additional positives. The very surprising price - just
Rs295 - is a huge "wow".
don''t get a decent meal for that kind of money nowadays;
forget about enriching your mind for life.
must buy for every market enthusiast before the publishers
realise their folly and jack up their prices.
Trading for a living
Author: Dr Alexander Elder
Publisher: John Wiley & sons
Cost: $74.95 - Hardcover
are three aspects to trading that every trader needs to
master before committing money to the game - psychology,
techniques and money management. Dr Alexander Elder has
mastered all three a practicing psychiatrist and
trader, he carefully provides hand holding in all aspects
in this wonderful book.
first part of the book will change the way you perceive
trading. Elder coldly compares trading to the old world
gladiators and warns us that a trader who loses money
puts his family through suffering, much like a losing
gladiator whose property and family were given to the
winner as prize money.
sobering approach to temper our ambitions so we take rational
decisions rather than emotional ones is fantastic. His
techniques are as old as the hills but the lucid way in
which he explains the patterns is incomparable. Every
important oscillator, pattern and chart reading tactic
that is required to make you a winning trader has been
section patiently puts the reader through the paces of
mastering technicals as well as any good instructor would.
This section was so compelling that I went through it
over three times. Money management and fiscal discipline
ties up the entire package that is sure to make you a
better trader and put you on the fast track route to trading
feel this book is a "must have" in every stock
or commodities trader''s arsenal. Though the book was first
written in 1993, the ideas remain as valid as ever. Never
mind the price of the book it is a steal for the
practical wealth of wisdom it contains for us traders.
Vijay L Bhambwani