Tuesday, February 8, 2011

Beginnings -1 First good read

How did I begin learning technical analysis? I remember going to the local library, reading a business magazine and finding the name Tokyo Joe – a famous day trader in the center page of the magazine. I subscribed to his on-line service just to learn what he was doing. I was no day trader and had no business subscribing to it of course. But Tokyo Joe had a unique writing style. He was knowledgeable and passionate about what he did.
I remembered his writing something like this:

“BOP is green,,, RSI turning up,,, and fast Stoch is moving up to.,, it’s a buy right here,,,’

That made no sense to me at all. Welcome to the strange world of technical analysis! It is another language to learn, in order to reduce risk and manage our money better. A much more sane way to learn technical analysis is to read Steve Achelis’ book, “Technical Analysis from A – Z”

It is a great read. It de-mystifies technical indicators. Says what each indicator is and shows an example of how the indicator can be used. Great book. It is still one of my favorites.

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