Registered: Jul 2010
Posts: 787

This is one sick thread. Damn.

Registered: Feb 2008
Posts: 2962

The problem with TA is that you will maybe get a good signal and make $X but then lose 2 x $X in the next 5 signals. In books people will include the pattern that made $X and "forget" the other 5 that lost $2X. It is a behavior borrowed from everyday life. We remember only the good times, good people, good places, etc. We tend to forget bad situations. But in the case of trading that is very costly. So the conclusion is that most TA book authors adopt selection bias. IMO it is extremely hard to maintain positive expectancy with TA in the longer term. For that you have to go automated and use rigorous math.

TA vs. not TA is becoming like the Creation vs. Evolution debate.

Registered: May 2005
Posts: 3150

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Quote from kmgilroy89:

I bought Technical Analysis: The Complete Resource for Financial Market Technicians. It's like a textbook and I'm only through chapter 2. I want to read a chapter a day and do all the questions. It seems like a good book and my only complaint so far is that I wish it had an answer key for the questions. What do people on ET think of this book? Are there better books? Should I supplement it with something else?

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Registered: Jul 2005
Posts: 504

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Quote from kut2k2:

Why not just read the Amazon reviews and avoid all the crap you get here from ET trolls when you ask questions like that?

http://www.amazon.com/Technical-Ana...howViewpoints=1

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Registered: Jul 2005
Posts: 504

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Quote from intradaybill:

The problem with TA is that you will maybe get a good signal and make $X but then lose 2 x $X in the next 5 signals. In books people will include the pattern that made $X and "forget" the other 5 that lost $2X. It is a behavior borrowed from everyday life. We remember only the good times, good people, good places, etc. We tend to forget bad situations. But in the case of trading that is very costly. So the conclusion is that most TA book authors adopt selection bias. IMO it is extremely hard to maintain positive expectancy with TA in the longer term. For that you have to go automated and use rigorous math.

TA vs. not TA is becoming like the Creation vs. Evolution debate.

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Registered: May 2012
Posts: 89

I posted a Noobie Reading list in another thread,

http://www.elitetrader.com/vb/showt...903#post3552903

FWIW, no book will teach you how to trade, that only comes with experience... at best these type of books will make you familiar with patterns and terminology, but not how to trade them... avoid all books which profess they will...

For all aspiring traders, the books on psychology are must reads... [Douglas, Livermore, Graham] I neglected Elder in that post, and I am sure there are others...

Investopedia is an excellent resource for information. Just keep drilling down links.

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