You want the truth? Being a technician is awesome. I wouldn’t have it any other way. But with my strategies of choice come the questions. Some I’ve answered already but a few keep coming up: “What Books do you recommend on the subject of technical analysis?”, “What blogs or websites do you read?”, and “What charting tools do you use?”. So let’s address that today:
What books do I recommend?:
John Murphy: Technical Analysis of the Financial Markets – Straight and to the point
Edwards & Magee: Technical Analysis of Stock Trends – The bible on the subject
Martin Pring: Investment Psychology Explained – one of my favorite reads of all time
Steve Nison: Japanese Candlestick Charting Techniques – This is the go-to for everything candlesticks
John Murphy: Intermarket Analysis – Read this one after you have a little bit better understanding on technical analysis. Also one of my favorites.
Jeff Hirsch: Stock Traders Almanac (every year) – You gotta know this stuff. To ignore these seasonal tendencies is just silly.
Brian Shannon: Technical Analysis Using Multiple Timeframes – This is the first book on TA that I voluntarily read after passing CMT Level 3. Awesome book that really trains you to think in different time periods.
Robert Prechter: Elliott Wave Principle – 99% of people who dismiss Elliott Wave don’t even understand it. You could be ignorant like the crowd or you can learn and judge for yourself.
Constance Brown: Technical Analysis for the Trading Professional – helps you to think outside the box. This business is about being creative with your analysis and staying one step ahead of the crowd.
What I’m reading now?
Andrew Lo: The Evolution of Technical Analysis – Financial Prediction from Babylonian Tablets to Bloomberg Terminals
Robert Shiller: Finance and the Good Society
What are my favorite blogs?
Abnormal Returns – Tadas reads everything. He breaks down for you what is important and what you should read. Incredible tool. Also check out his new book.
Afraid to Trade – Corey is a Great technician and I love his Intermarket work.
Alphatrends – I’ve been watching Brian Shannon’s videos since 2006. He’s a friend, a favorite author and one hell of a technician. Go buy his book too!
AshrafLaidi – For everything technical in the currency markets – this is your guy
Barrons Streetwise – If you’re not reading Michael Santoli on Saturday mornings, I don’t know what you’re doing
Bespoke Investment Group – These are the best, up-to-date and relevant charts on the web. Not reading this site should be a crime.
The Big Picture – Because Barry started this all and he’s been blogging since before blogs existed. Daily read no matter what your strategy.
Calculated Risk – My go-to for Employment, GDP, Retail and Real Estate charts
ChessNwine – He’s my chart guy at ibankcoin
Dragonfly Capital – Just pure awesomeness. One of my favorite Stocktwits follows
Derald Muniz – Recently added to my list of daily reads and has become very valuable to me
dshort – Great charts. Must read
High Chart Patterns – Excellent Technical Analysis, more short term stuff
Joe Fahmy – A friend and just all around good technician and risk manager
Kimble Charting Solutions – Technical analysis of all asset classes. Great Intermarket work
Market Anthropology – Keeps you in check by comparing current action with older charts
Peter L Brandt – One of the best on the web. Subscribe & follow @PeterLBrant – Do this right now
SMB Capital – Notes from inside a NYC prop trading shop
StockCharts Blogs – Great network of blogging technicians. All Asset Classes.
The Stock Sage – Robert Sinn is a friend and great technician. Incorporates fundamentals nicely but we know where his heart is 😉
Stock Traders Almanac Blog – you need the book on your desk and you must read the blog. Period.
What is a Chartered Market Technician?
The best decision of my career. Go to MTA.org to find more information.
Here are some Frequently Asked Questions
If you are interested in learning technical analysis and don’t have your CMT – go do it right now. Stop thinking about it – just go.
What Tools Do I Use?
Stockcharts.com – great for annotating charts and with the subscription you get daily comments from John Murphy and Arthur Hill. Great deal
StockTwits and Chart.ly – Following some of the best on the stream (see here)
Tradestation Charting Software – I think it’s the best. I built my proprietary oscillators using their “Easy Language” (which is not easy at all by the way)
Google Alerts– I set up my news feed with some of the best technical analysts on the street: Louise Yamada, Carter Worth, Mary Ann Bartels, Jordan Kotick, Katie Stockton, Ralph Acampora, Robert Sluymer, Sam Stovall, MacNeil Curry, Jeff Degraaf, Chris Verrone, Greg Troccoli, Tom Demark, JC O’Hara, and John Roque.
And For Fun?
Most of my time is spend on studying price action and reading some of the technical analysis done by my colleagues. But the markets are my hobby. So to learn about other areas that I don’t know as well I read: Howard Lindzon (for the inside scoop on interesting start-ups and stock momentum names), TheReformedBroker (because it’s a daily must read for everyone in the business), Zerohedge (to keep me in check), Dealbreaker (for the gossip), Lydia at FaithMight (for the FX markets), Leigh Drogen (bc he’s a friend and just the man – see Estimize), TraderHabits (for trading stories and lessons), TechCrunch (bc I’m a tech geek and I love this stuff), Phil Pearlman (bc he’s Dr. Phil, so how can I not), The Basis Point (My pal Julian is the go-to guy for everything mortgage and housing), and Dilbert (bc it’s hilarious).
I just finished reading Josh’s new book Backstage Wall Street (it was awesome, go buy it now), Reminiscences of a Stock Operator (must read for anyone who trades), Barry Ritholtz’s Bailout Nation (for the truth on what happened a few years ago), Market Wizards (Interviews with Top Traders), Technically Speaking (Interviews with Technicians), Beautiful Pictures from the Gallery of Phinance (Elliott Wave), When Genius Failed (LTCM debacle), Liars Poker (Bond Traders being Bond Traders), and A Non-Random Walk Down Wall Street (BECAUSE MARKETS ARE NOT EFFICIENT).
So there you have it. Understand that there’s a lot more to it. These are just a few things that stand out. I’m sure I’ll add to the list over time and update it when necessary. But I hope this helps you understand what I’m looking at and how I’m thinking. There are no secrets here. This is literally what I read everyday and these books are what helped me turn into the technician that I am today.
If you have any suggestions that I didn’t list or think I may have missed, please let me know. Also, I’m more than willing to check out some books and blogs that I haven’t already read. So let me have it!
Why Charts? (TheReformedBroker June 28, 2011)
Are You A Technician? (Allstarcharts November 5, 2011)
What Does Technical Analysis Mean to You? (Allstarcharts April 6, 2012)