March 11, 2009

What is the best technical analyst book for beginning stock traders?

Hi Jeff, I have been receiving your newsletter for a while. I have never done any trading but am really anxious to get started. I have been studying, off
and on, a course for the past couple of years. It's pretty technical and about the time I get started studying it, I guess I get a bit overwhelmed and quit. Then, I start again, and so on.

My question to you is, do you teach a course or is there one that you recommend to the beginner trader who doesn't know much about the market. I prefer something with DVDs or some other visual instruction rather than just audio or books.  I'm a grandmother…61 years old…and would like to begin trading in the hopes of putting a little something away for my retirement. Plus, I have always been facinated with the stock market and the concept of trading. I'm
just having some trouble with the technical analysis and trying to determine when there is a real buy signal and a good entry into the market.
Thanks so much for your help! - DIane

Answer:  Diane that is a question I could talk about for days and quite frankly it is very hard to answer which is the best technical analyst books for  beginning stock traders.  Here's why…

1.  Every trader is coming into the market with different levels of experience.

2.  Each trader learns in different ways.  Some learn best through videos, other prefer listening to audio and some prefer to sit in bed and read a book.

3.  No two traders process information in exactly the same way as much of technical analysis is visually subjective.

4.  Some traders want a system that is 100% mechanical and others want flexability.

5.  Each trader has a different tolerance to risk.

6.  Each trader has a different amount of time they can devote to studying.

7.  Each trader has a different schedule for when they can trade.

8.  Some traders are looking to get rich and never know when to leave good enough alone.

9.  Some traders simply don't have the discipline to stick to one system.

10.  Some traders like to make things more complicated than need be.

11.  Depending on what age a person is will also determine how aggressive or conservative they can be.

That is the tip of the ice-burg so unless I knew how you wired and process information it is tough to narrow down my suggestions.

I think a good starting point is to simply buy a Stock Market For Dummies Book. This will give you some basic understanding of general market concepts.  Also browse through your local Borders books and see if any of the trading books catch your eye.  For example you may see a book that teaches the investing principles of Warren Buffet.  If it interests you then start there.  The bottom-line is you are going to have to look at quite a few books to see what trading styles suit you most.

I do have a few trading programs, one is found at  www.win-at-trading.com  but hesitate recommending it especially if you are not comfortable with some fairly heavy technical concepts.  I will howver be coming out with a very simple program in about 8 weeks.

Not sure if I helped you Diane, but like I said this is a huge topic.

Best of luck to you!

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