Technical Analysis

Hi all, one of my goals for 2009 is to understand and dip into trading via technical analysis.

1) Anyone else trading via technical analysis ? If so what has been the experience ?

2) Where can one begin ? Websites, books, course recommendations.

Cheers ...

 

Hi ActiveTrade,

There are quite a few books about technical analysis, books by Daryl Guppy are particularly good. Saying that, it is also very worthwhile reading "A Random Walk Down Wall Street" by Burton Malkiel.

Cheers,

Dan

 

1) Yes. Positive experience. The key thing to remember is that technical analysis simply provides a framework within which to trade. The single most important aspect to successful trading is risk management.

2) Depends a bit on what you want to trade, but can suggest:

- 'Trading for a Living' & 'Come into my Trading Room' by Alexander Elder
- 'The Candlestick Course' by Steve Nison
- 'Trend Trading' & 'Chart Trading' by Daryl Guppy
- 'New Concepts in Technical Trading Sytems' by J Welles Wilder

There is also a couple of technical analysis subjects in the Kaplan Graduate Diploma of Applied Finance course if you want to take a more structured approach to learning.

Also might be worth getting in touch with your local Australian Technical Analysts Association Australian Technical Analysts Association - Home

Also check out Colin Nicholson's site
Colin Nicholson: Building Wealth Through Shares — Home

 

Hi ActiveTrade,

1) During the tech boom I used technical analysis and was very profitable for a few years - who wasn't! However, profitable technical trading on a consistent and long term basis (at least 10 years) is very difficult.

2) I would highly recommend you do a lot of research before committing any funds to the market. I would also recommend that you look at websites, books or courses that are provided by successful technical traders themselves.

Another point, the single most important aspect to successful trading and any other endeavour is mind management - that is sticking to your plan.

Personally, I gave away trading a long time ago and now stick to long term value investing using similar principles to Warren Buffet.

All the best with your trading!

 

Active Trade,

Nobody said that trading as such is easy, but trading is very profitable if you do have a plan/system and good money management system in place no matter how long/short time span we are talking about.

First – you must understand your own motive for trading. If your prime motive for trading is to make money that you are guaranteed to fail.
You must also understand, that you are trading to survive !!.
If you adopt this way of thinking you’ll be around long enough to make money.

I would suggest books/courses wrote/run only by professional traders (with a proven track record), who successfully trade for a living for at least 10~15 years.
Below link may be of some help to you.
http://www.invested.com.au/79/trading-rules-366/

 

ActiveTrade - The above comments are all very useful, and yes technical analysis is simply one aspect of trading. Of course risk control is critical, and this includes solid money management. Psychology is another major aspect of trading, one needs to be able to emotionally accept loses as part of the game.

I would recommend getting a solid grounding in all three aspects of trading - money management, psychology and technical analysis. Education is the key. There are some good books out there including 'trading for a living' and 'come into my trading room'. However i believe that a trading course offers a more rounded and complete education.

One course i recommend is The Everyday Trader's - Beginners Trading Course. This course is written by Dave Limburg who has been a professional day trader for 10 years, and who won CMC markets trading competition (with an amazing % return, can't quite remember what is was). He has proven his knowledge and obviously knows how to trade.

Good Luck