Technical Analysis of Stocks & Commodities, Volume 5: Trading Strategies

Technical trading takes its toll on those who practice it. There are times when all the charts in the world can’t help you react the proper way. There are times when every indicator says no and you still want to say yes.  If you know those moments, this volume is for you.

Understanding trading psychology can help you identify behaviors that can hurt you… and concentrate on the ones that will help you. Van Tharp’s article provides a good amount of the information you’ll need to understand and correct your behavior — or, if you’re new to trading, traps to avoid. He even points out how dangerous it can be to your ultimate trading success to profit from a trade — and why you might stick with a losing trade so long.

As usual, numerous techniques, both well-tested and innovative, pepper this volume. Familiarize yourself with John Sweeney’s maximum adverse excursion and get out of your position while the getting out is good. Or learn how to take advantage of changes in commodity prices with Andrews’ median line technique. You’ll even learn how to understand the market movements of a stock whose company is likely to be taken over (and benefit accordingly). Finally, that cornerstone of technical trading, the Wyckoff method, is represented in a dozen articles.

What can you use? Consider the following:

* Spread investing * Mutual fund timing * The overbought/oversold indicator * Enhanced Williams' %R

If you’re looking for a breadth of understanding — from what happens in the pits to what happens in the pit of your stomach — STOCKS & COMMODITIES: Trading Strategies, Volume 5 is required reading.