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15 Essential Books for Traders
06/05/2013 6:00 am EST
The WallStreetCurmudgeon has been collecting investing books for over 30 years, and below he lists his top 15 must-read books for traders.
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications
by John J. Murphy
Widely regarded as the modern bible of technical analysis, this outstanding reference has already taught thousands of traders the concepts of technical analysis and their application in the futures and stock markets. Covering the latest developments in computer technology, technical tools, and indicators, this new edition features new material on candlestick charting, intermarket relationships, stocks and stock rotation, with state-of-the-art examples and figures. From how to read charts to understanding indicators and the crucial role technical analysis plays in investing, readers gain a thorough and accessible overview of the field of technical analysis, with a special emphasis on futures markets. Revised and expanded for the demands of today’s financial world, this book is essential reading for anyone interested in tracking and analyzing market behavior. If you want to understand the principles behind almost any currently used technical analysis technique or indicator, then this book is a must read. Rich in content and wide in coverage, Murphy covers all the classical technical methods as well as quantitative methods, Elliot Wave, Gann and even principles of money management. A definite must for the library of any trader or wannabee.
How Charts Can Help You in the Stock Market
by William L. Jiler
This classic and timeless book is a must-have primer on technical analysis. Published in 1962, it was the first book to explain how all investors can use charting to more profitably time both for their buys and sells and is globally renowned to this day for helping traders and investors use the tools of technical analysis to increase their profits. Featuring a new foreword by the investing experts at Standard & Poor’s, this special reprint edition is an excellent resource for beginners as well as a vital reference for experienced technicians.
Technical Analysis Explained : The Successful Investor’s Guide to Spotting Investment Trends and Turning Points
by Martin J. Pring
A gold mine of practical information, this book provides straightforward explanations of a growing array of market indicators, including candlestick charting, market breadth, moving averages, and cycles. A classic for the beginning technical analyst, and one of two required texts for the first level of the Chartered Technical Analyst exam. Since its original publication, and through two updated editions, Martin Pring’s Technical Analysis Explained has showed tens of thousands of investors, including many professionals, how to increase their trading and investing profits by understanding, interpreting, and forecasting movements in markets and individual stocks. A step-by-step program for incorporating technical analysis into your overall trading strategy and for increasing your predictive accuracy and potential profit with every trade you make.
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Technical Analysis and Stock Market Profits: A Course in Forecasting
by Richard W. Schabacker
This classic is the foundation on which technical analysis is built. Picking up where Charles Dow left off, Richard Schabacker achieved fame in the 1920s and 1930s with his seminal work in technical analysis, which he said was capable of finding “dependable profits in the stock market, year in and year out.” Students of his work went on to build technical analysis into the refined discipline it is today. This handsomely illustrated reproduction of Schabacker’s landmark study of 1932 is a chartist classic.
Technical Analysis of Stock Trends, 8th Edition
by Robert D. Edwards & John Magee
For 50 years, this universally acclaimed classic has remained the bible of technical analysis. This was the first effort to produce a methodology for interpreting and profiting from the predictable behavior of investors and markets. This new edition explains every aspect of charting—from basic principles to advanced trading techniques—to help investors make money regardless of what the market is doing. Completely revised and updated with new charts and references, this is an essential classic for investors, especially in today’s tumultuous markets.
Japanese Candlestick Charting
by Steve Nison
Internationally recognized as “The Father of Candlesticks,” Nison presents the most comprehensive, in-depth explanation of candlestick plotting and analysis, conveying to the reader, in easy-to-understand language, the author’s years of practical experience in this increasingly popular and dynamic approach to market analysis. It includes hundreds of examples that span the equity, futures, fixed-income, and foreign exchange markets and shows how candlestick charting techniques can be used in almost any market. It has been thoroughly updated in this new edition, including everything from the basics, such as constructing the candlesticks and learning the patterns, to advanced topics, such as the rules of multiple technical techniques. Whether you are new to candlestick charts or a seasoned pro, the rewards will be immediate and long lasting.
Beyond Candlesticks: New Japanese Charting Techniques Revealed
by Steve Nison
Nison introduces even more powerful yet subtle Japanese charting techniques that have never been published or used in the Western world before. Detailed charts and graphs take readers step-by-step through charting techniques that can be used for equities, fixed income, foreign exchange, and overseas markets. Nison also takes us deeper inside the mysteries of candlesticks, expanding his coverage beyond the futures markets that were the focus of his earlier classic. He also demonstrates new ways in which candlesticks alone or in conjunction with traditional Western techniques, can be adapted to virtually any trading, investing, or hedging strategy. Affording Western readers an unprecedented opportunity to acquaint themselves with these powerful, centuries-old techniques, Beyond Candlesticks is a resource that no trader, broker, analyst, or investor can afford to be without.
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Bollinger on Bollinger Bands
by John A. Bollinger
Bollinger bands sharpen the sensitivity of fixed indicators, allowing them to more precisely reflect a market’s volatility. By more accurately indicating the existing market environment, they are seen by many as today’s standard—and most reliable—tool for plotting expected price action. Bollinger explains how to use this extraordinary technique to compare price and indicator action and make sound, sensible, and profitable trading decisions. Concise, straightforward, and filled with instructive charts and graphs, this remarkable book will be essential reading for all serious traders, regardless of market. Bollinger includes his simple system for implementation, and techniques for combining bands and indicators.
Elliott Wave Principle: Key to Market Behavior
by Frost and Prechter
This is the definitive guide to the fundamentals of Elliott Wave analysis. The premise is that there is vital information to be gleaned from the price action of stocks—the data derived from the series of traded prices, and that there is a natural flow to these price movements—stocks back and fill as they move in trends. The authors identify waves and cycles with historical and mathematical examples and illustrations, and show how these proliferate in nature. Waves move in a natural progression defined by the Fibonacci sequence, and Fibonacci ratios can forecast the distance (percent change) and timing of stock price movements.
Encyclopedia of Chart Patterns
by Thomas N. Bulkowski
This comprehensive text details over 50 chart patterns that signal whether a stock is in bullish, bearish, or neutral mode. It identifies each chart pattern, explains how and why each chart was formed, and where it will go next. You simply filter the information through your own trading style and strategy, watch for the optimal entry and exit points, and trade the markets with skill and confidence. The step-by-step chapters present the technical analysis tools, then reveal the secrets—such as average failure rates, most likely gain or loss, volume trends, and surprise findings—as you use the tools to build a portfolio of wealth. The result is today’s most valuable technical analysis reference—one that will save you critical time in identifying chart patterns and increase your likelihood of buying near the price bottom and selling near the top.
Technical Analysis from A to Z
by Steven B. Achelis
A reference for investors, completely cataloging today’s major technical analysis indicators for trading stocks, bonds, futures, and options. Features quick-read 2-4 page sections on over 135 indicators, detailed charts, and tables with calculations on over 80 indicators, and tools for improved trading profits in every market. This updated edition combines a detailed explanation of what technical analysis is and how it works with overviews, interpretations, calculations, and examples of all the technical indicators—showing how they perform under actual market conditions. Enhanced with more details to make it easier to use and understand, this book reflects the latest research findings and advances.
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The Encyclopedia of Technical Market Indicators
by Robert W. Colby
The book lists the indicators in alphabetical order and devotes two to five pages defining what each indicator is, explains the philosophy behind the indicator, who created it, and how to use it. Encyclopedic format provides an alphabetical and up-to-date listing of hundreds of today’s most important indicators and provides easy-to-understand guidelines for using them in day-to-day trading. Broad in both scope and appeal, this one-of-a-kind reference painstakingly updates information from the previous edition and defines and discusses nearly 100 new indicators.
Stan Weinstein’s Secrets for Profiting in Bull and Bear Markets
by Stan Weinstein
Certainly one of the best books on the technical side of the market, this book is a must-have for any investor. Whether you’re just beginning, or can’t seem to find the direction to profits in the market, this book will help you. The author spells out why most investors lose in the market, and how easy it is to make money if you eliminate your emotions, and follow his investing techniques and guidelines. His strategies will keep you out of losers and help you become a confident investor. The author’s investment philosophy is based on the view that nearly all stocks experience four price stages: accumulation (stage 1), uptrending (stage 2), top area (stage 3), and downtrending (stage 4). An investor, he says, has a high probability of success if he or she enters the cycle just before the stock moves to stage 2. He explains how to select a stock by simply studying its price/volume chart and how to time your entry. Don’t let the publication date influence you. Start reading, and you will think he published it this year.
The New Fibonacci Trader: Tools and Strategies for Trading Success
by Robert Fischer & Jens Fischer
In trading the markets, it’s important to know what to buy, but it’s even more important to know when to buy. Accurately measuring price and time signals are one of the best ways you can do this. The New Fibonacci Trader and companion CD-ROM offer a powerful new arsenal of Fibonacci trading tools and software to recognize patterns, predict swings, and buck the trend—so you can achieve the highest rate of profitable trades. Whether you’re dealing in stocks, futures, cash currencies, or other financial ventures, The New Fibonacci Trader will help you calculate key turning points in the markets, analyze market cycles, and make disciplined trading possible and profitable.
Mastering Elliot Wave: Presenting the Neely Method: The First Scientific, Objective Approach to Market Forecasting with the Elliott Wave Theory
by Glenn Neely
Mastering Elliott Wave has everything one needs at all levels to master Elliott Wave, with clearly drawn pictures, complete computations, and exhaustive detail. This book provides the most complete explanation of Elliott Wave Theory available. With proper study, the reader should be able to master with complete understanding the technicalities of the Elliott Wave Theory. Since Fibonacci numbers and golden ratio are the most important parts of the wave theory, you have to know how to apply them on the charts. Not only the price distance, but the time elapsed to form the waves are dependent on the Fibonacci numbers and this book teaches you how to use them. The author also defines clearly how to apply the rule of alternation, rule of equality, and the rule of complexity. You will learn how to analyze complex wave structures and what to expect when the waves advance to form larger waves.
By the WallStreetCurmudgeon