Technical Analysis Plain and Simple was designed to do three things: enhance your returns, help you avoid bad trades, and get you to think in terms of probabilities.
Technical analysis offers a vast array of tools for every type of analytical task. There are charts that display prices in time frames ranging from trade-by-trade to daily to monthly and longer. They can show market cycles, phases of fear and greed, and projected targets. Technical analysis is about probabilities and escapes. People probably react in similar fashion to similar situations, but it is not guaranteed. Proper analysis will give you the probability of a correct buy or sell decision, as well as tell you right away when you have made a mistake.
Even if your analysis and decision were absolutely correct, the world changes. When it does, the technical condition of the stock or market changes. The charts will alert you that you need to reevaluate your positions. Do not worry that you might read about sophisticated analysis and therefore think like a short-term trader at the stock exchange. Treatment of each subject is kept deliberately light. You will not have to wade through a discourse on how the market works or how to manage your personal finances. It is assumed that you already know this. This book is not concerned with why you are investing, other than to make money.
Finally, there will be no discussion of earnings, sales, revenues, debt, weather, harvests, or other fundamental data other than to mention that fundamentals do drive the stock price in the long term. Respect them, but do not use them directly in the stock-picking decision.
- A FEW THINGS YOU’LL NEED TO KNOW BEFORE YOU BEGIN
- THE CORE OF CHART ANALYSIS
- TECHNICAL ANALYSIS IN THE REAL WORLD
- THE ACTUAL PROCESS OF INVESTING
- TOOLS AND CASE STUDIES
- FURTHER ON DOWN THE ROAD
Technical Analysis Plain and Simple: Charting the Markets in Your Language By Michael N. Kahn pdf