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Good books on technical and fundamental analysis?

Discussion in 'Trading/Investing Resources' started by ausnick87, Apr 9, 2011.

  1. ausnick87

    ausnick87

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    Hey everyone,

    I've just signed up and have been reading a few threads on these forums and I'm quite interested in finding what good books (that relate to fundamentals and technicals etc) are worth getting... now as a complete newbie I have no idea what these even mean :p but I am very keen to learn as I do plan to invest.

    I apologize if this has been covered elsewhere; perhaps someone can link me? but I would just like a recommendation of quality books. I've found plenty of 'motivational / self help' stock market books on amazon for $5-$20... but I suspect these are worthless and that the quality material willl cost a lot more.

    Thanks for any valid recommendations. :)
     
  2. VSntchr

    VSntchr

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    Re: Good books?

    Some good fundamental related books are by authors such as Ben Graham, Peter Lynch, Philip Fisher...this is only naming a few..there are plenty more.

    Not sure about the tech side, maybe wait for some other responses for that approach.
     
  3. ausnick87

    ausnick87

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    Re: Good books?

    thanks for the reply, i'll check those authors out.
     
  4. ausnick87

    ausnick87

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    sorry for double post but i couldnt edit...

    so far I've picked up:
    the intelligent investor - ben graham
    Common Stocks and Uncommon Profits - philip fisher
    one up on wall street - peter lynch
    buffett beyond value - Jain Prem
    an ebook called 'the book of investing wisdom - peter krass (but features work from Warren Buffett, Peter Lynch, and Abby Joseph Cohen and a few others)
     
  5. tech/a

    tech/a No Ordinary Duck

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    I'm interested

    So what are you going to do to actually put your money into an investment or trade.
    how will you APPLY this "Good Book" knowledge?

    How will you know that what you are going to do will be longterm profitable.

    Do you actually know what you are looking for in a "good" book.
    What defines a "good" book?
     
  6. ausnick87

    ausnick87

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    Good question.

    At this point I'm just a 23yo uni student who desires to learn (trade) the Australian stock market so that I can potentially make profit; obviously not immediately... it's more of a long term goal actually. As I have a bit of money sitting in my bank account atm I thought learning shares might be a good idea, at least I think that's a better idea than earning a mere 6% or so in taxable interest which is all it's doing atm...

    Should any book help me achieve my goal I'd say it's 'good' book. :)
     
  7. cudderbean

    cudderbean

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    As far as TA I've enjoyed all the Daryl Guppy books.. very readable and common sense.

    The book that first fired my imagination 30 years ago was "How I Made $2 Million Dollars In The Stock Market." by Nicolas Darvas.. it reads like a thriller.

    Good luck, mate.
     
  8. Wysiwyg

    Wysiwyg Everyone wants money

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    30 years on now and how have things fared in the stock market for you? Were you able to replicate Nico?
     
  9. cudderbean

    cudderbean

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    Not bad.. I was able to retire in my early 40s, and the market nowadays is a labour of love.

    Unfortunately at the same time as I read Darvas’ book, I was also subscribing to a newsletter “The Midas Touch” I think it was called. Their system was the opposite of Darvas’s. It reprinted an article from The Bulletin mag re a Mr Womack, a Texan pig farmer and highly successful investor.

    His method was very simple. He rarely read the financial pages of the newspaper, but waited until on the “front” page the headline read “Stock market record low” or some such doom and gloom... i.e. the financial editor thought it newsworthy enough and had done Mr W’s filtering for him. He would come into his broker’s office for research and spread his risk by buying a range of quality companies that paid good dividends.. nothing wrong with them, just caught up in the downturn. He’d go back to his pig farm and thought it marvellous that he got a dividend cheque every 6 months without any labour, whereas he had to feed his pigs for a return.

    Then a couple or so years later, he’d read again on the front page of the paper “Stock market record high”. Then he’d come into town and sell the lot, and put his money in the bank till next time. He never got the absolute bottom of the market nor the absolute top, but he never lost!

    I thought this wonderful too and doubled my money a couple of times in the 80s. Then I bought my first computer, got greedy, and tried to pick the absolute tops and bottoms and failed miserably!

    The method has some merit for a long term investor, but there’s also the danger of trying to catch a falling knife syndrome, and inevitably amongst the fantastic blue chip “bargains” will be a Bond Corp, Quintex, and HIH. I would add to Womack’s system: wait until the “bargain” has breached both its 150 MA upwards and its down trendline.. and the XAO is doing the same. And even then watch out for a dead cat bounce.

    In retrospect I could’ve made more money with a system more akin to Darvas: the trend is your friend. Hop on the feeding frenzy bus, but make sure you’re not the last one on board. Get off a stop early.. there’ll be another bus coming along soon.

    Thanks for the trip down memory lane, WYSIWYG.
     
  10. Wysiwyg

    Wysiwyg Everyone wants money

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    Yeah no worries. I think timing is the message there.
     
  11. RADO

    RADO

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    Share's Made Simple By Roger Kinsky, is a good book to start out with. And anything by Daryl Guppy and van tharp. As for technical analysis, You should go on youtube and look up videos on 'MACD' and Candle Stick Charting. I hope that helps.
     
  12. joea

    joea

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    You maybe interested in " the new sell and sell short " by elder.
    Go to Amazon site(us) and you can check contents.

    Fishpond will supply at discount prices.

    Leavitt Brothers for technical analysis.

    Intersuitte site , for fundamental research on emerging companies. i.e. DRX, BND.
    This will show you how the brokers "put it together".

    All the best.:)
     
  13. joea

    joea

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    On fundamental analysis, Colin Nicholson's " Building Wealth in the Stock Market".
    This fellow has his own site www.btws.com.au , where you will find a review.
    Amazon usa have 5 reviews.
    For a small fee you can join his site which allows you entry to his publications and his
    own stock selection.
    His site has the articles that made up " Charting Power Stocks".
    Montly news letter.
    This guy told his subscribers he had sold off 70% of his stocks in October 2007, and why.
    Cheers
     
  14. joea

    joea

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    Tradeguider have a email WITH VIDEO about new book coming out in May.

    "Trading in the Shadow of the Smart Money"

    Covers VSA and patterns so the author says.

    cHEERS
     
  15. drworm

    drworm

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    That's a good list of fundamental books. One Up On Wall Street would have to be my all time favourite.

    A very recent Australian book that I've been impressed with is Roger Montgomery's Value.able. Great for beginners because he lays out the steps involved with the actual application of his valuation method and there's also an online community in support.
     
  16. Spongle

    Spongle

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    There are so many books on this massive subject that it may seem hard to find the right one... also because books of this nature often sell for extortionate prices it can become very difficult which ones to buy and whose to trust.

    Here's a tip: get them all!!! torrents are your friend :)
     
  17. MrMomentum

    MrMomentum

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    I hate reading for the sake of reading.

    I only want to read a book that presents a new trading idea that I’m not familiar with.

    If I find a new idea I want to test it immediately by paper trading it. I like to read with a purpose.

    BTW, I really enjoyed reading Real Traders 1 and 2. I found some great ideas in these books. Lots of great insights!
     
  18. tech/a

    tech/a No Ordinary Duck

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    So of all the books of new ideas how many have traded profitably.

    Paper trading by the way is pretty hopelss as it will take around 500 trades to be statistically significant.
    10000 would be more significant. To attempt this would take years.
    Most stop "paper trading in 30 trades

    You need serious testing software and a sound knowledge of coding and system design along with systems analysis.
    Anything short and you'll find yourself buying books infinitum in the hope you'll actually find something that works--- long term.

    A good start is Amibroker
    Better couple it with Tradesim

    Enjoy your search
    Remember you only need one successful trading method---- a proven one.
    Hardly anyone has one!
     
  19. Nicktech

    Nicktech

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    Secrets for profiting in bull and bear markets by Stan Weinstein is a good starting book for technical analysis. Weinsteins stage analysis probably doesn't hold as true these days as it did back when Stan had his rocking hairdo! But the book does teach how to use the moving average and to refine your stocks from a top down approach by looking at the strongest sector, then the strongest stocks.

    Trading in the zone by mark Douglas is a good personal performance primer to teach discipline.

    Darvas' book is an inspiration! So is Michael covels book on the turtle traders. I like how both show that traders CAN come from any background and not just ivy league universities or financial institutions.

    Any of those books are a great read and will teach a learner some good basics.

    Nick
     
  20. davede

    davede

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    All fantastic suggestions here.

    I think one of the important questions you have to ask youself when getting involved in the market is which books, strategies or techniques are you going to use to achieve your goal?

    You want to make money in the stock market and there are a million ways to do so.

    My favourite market books include:

    - Market Wizards
    - The New Market Wizards
    - Inside the House of Money

    These are my favourites because they simply go to the most successful traders and investors and ask them what they do and why they're so successful. They give examples of how they think, why they think that way and how they make money.

    While there is a focus on Global Macro investing (which is my own preferred style) they give a fantastic and diverse way of how to successfully approach markets.

    Hope the list helps :2twocents
     
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