The vast majority of finance books written in the last decade are complete and utter shit. (I know this, you know this, hell, even our joke of an industry itself knows this, but nothing’s changin’ anytime soon cuz shitty books still make money due to the financial miseducation of the general public aka Watch TV and you won’t get rich, you’re just gonna get fat…or fatter!) Because they are written by marketers, fee-earners aka scum suckers, frauds, talking heads and sugarcoated / generalized to the point where we find our once great profession near-dead last in understandability/openness/excitement and widespread profitability.
Given these dark times, there are only a few wise choices—my book An American Hedge Fund (total openness/understandability) a few others, none of which come to mind right away, and these lists (HERE) of my 20 favorite finance/business books.
So you can imagine my surprise/delight when I discovered Brian Shannon’s (Alphatrends.net) debut book Technical Analysis Using Multiple Timeframes to be the single most accurate/honest/understandable book on charting since Steve Nison’s classic: Japanese Candlestick Charts.
That’s right, I want you to pick up a copy right the hell now and read in awe as Shannon explains how it’s not just about memorizing chart patterns—anybody who tells you that is a typically useless finance freak—it’s infintely more important to understand how variables, players and emotions align to create shockingly similar, repetitive, and, more importantly, predictable chart patterns.
Students of my Pennystocking DVD know this concept to be the main point around which I base my trading and what I go to great lengths to explain—at times better than others—Shannon pulls it off rather succinctly and effortlessly using graphics like these:
More importantly, Shannon delves into the steps necessary to make sure you stay disciplined—whether that means cutting losses quickly, using stop losses, waiting for pattern confirmation etc.—and that’s the kind of stuff at which most traders—me included—suck aka it’s crucial to learn this stuff if you hope to be a successful trader.
God friggin love Shannon for putting together this 184 page MUST READ, being an infinitely better trader than me as his focus is not these little 5-20% gains (yeah TIMalert subscribers today on CNEH, detailed post coming tomorrow, whaaaaaat!), wanting and teaching others to want larger, longer-term gains on larger/more liquid names than PennyStocking. If he made a DVD of his strategies, it’d probly be called StockCharting because at that he is a master teacher.
So, you poor people, continue learning PennyStocking and expand your horizons with Shannon’s awesome charting book. Hell, it might even teach you a thing or two about PennyStocking itself as there are a great any overlaps. You middle-class people: learn it all, you’ve got the money and opportunity to really get ahead and make your non-trading friends look like dumbasses. And you rich people—understand technical analysis is not some crazy science, it’s life…cuz it’s based in human psychology and more importantly, and, more importantly, stop being so goddamn stuck up–money doesn’t make you any better, in most cases, it makes you far worse!
Disclosure: I’m a Shannon affiliate so part of your purchase will go to help my sushi habit and I’m damn proud to have finally found a friggin finance product worthy of my unabashed-promotional-at-all-times-big-mouth…aka I’ll never promote anything this hardcore that I really don’t believe to be useful/helpful/worth its cost many times over.