Some of you asked me to recommend a few books on technical analysis for beginners.
Since I’ve never read a book on technical analysis myself, what I did was ask in the LinkedIn group Club Financiero, and it was the members themselves who recommended some books.
1. Candlestick para traders
Written by Carlos Jaureguízar (in Spanish) and recommended by Javier Orellana. This book covers candlestick techniques, which are increasingly popular among small traders. The book’s blurb explains that it has been a success thanks to a simple secret: candlestick analysis is simple, clear and, above all, exact. (Be wary of the word “exact”: no stock market method is exact.)
2. Technical Analysis of the Financial Markets
Written by John J. Murphy, a former Merrill Lynch director, and recommended by Carlos Sancho. It’s said to be one of the most complete books for anyone who wants to understand technical analysis, and it includes more than 400 explanatory charts.
3. Secrets for Profiting in Bull and Bear Markets
Written by Stan Weinstein. It reportedly reveals a simple method within reach of any investor: building a set of indicators that map out where prices are heading next. All you need is a better-than-average success rate. It’s impossible to be on the right side every time; it’s enough to get it right more than one time in two.
4. Manual de Candlestick
A completely free guide that’s every bit as good as many books on candlesticks (Japanese candlestick charts). You can read or download it here: http://www.sentimientomercado.com/manualcandlestick.pdf
5. El arte de especular (The Art of Speculating)
Written by José Luis Cava (in Spanish), one of the independent analysts I personally respect most, both for his professionalism and for his cheerful, friendly character and his particular sense of humour. It’s aimed at anyone who wants to put together a simple speculation system, or at least apply some very simple techniques and tricks that let them take advantage of the opportunities the markets offer.
There are probably other good books on technical analysis out there, too.
Featured image: Yoshimitsu Sasaki, Public domain, via Wikimedia Commons.
