Technical Analysis of Financial Markets

Hardcover: 576 pages

Publisher: Prentice Hall Press; Subsequent edition (January 4, 1999)

Language: English

ISBN-10: 0735200661

ISBN-13: 978-0735200661

This highly academic book covers technical analysis almost in its entirety. It has taken me several weeks and 40 over pages of notes to record down what I have garnered from this text. Murphy has certainly written a great educational text despite it being published a few years back.

The following are the chapters within the book itself and some inadequately brief descriptions:

1. Philosophy of Technical Analysis
• The basics with an argument against fundamental analysis
2. Dow Theory
• The beginning of stock analysis
3. Chart Construction
4. Basics Concepts of Trend
• Trends can be relative at different points of a chart so trend analysis is more of an art than rocket science.
• Volume plays a huge role in trends
5. Major Reversal Patterns
• Pre-requisite is to have prior trend
• Many patterns and can often be misinterpreted
6. Continuation Patterns
• Made up of triangles
• A resting pause in trends
7. Volume and Open Interest
• Volume precedes price
• Increasing volume suggests continuing trend
8. Long Term Charts
• Not for trading purposes
9. Moving Averages
• Best for trending markets and worst for sideways/choppy market
• Use for signaling a change of trend
10. Oscillators and Contrary Opinion
• Best in non-trending markets, especially for end of market moves
11. Point and Figure Charting
• Pure study of price movement
12. Japanese Candlesticks
• Trend must be determined before interpreting Japanese candlesticks
• Has many reversal and continuity patterns
13. Elliot Wave Theory
• Important factors to note are pattern, ratio and time
• Characterized by 5-wave advance and 3-wave decline
• Each Wave is characterized by a smaller wave
14. Time Cycles
• Longer term – more than 2 years
• Intermediate term – 9 to 26 weeks
• Short (trading) term – 4 weeks
15. Computers and Trading Systems
16. Money Management and Trading Tactics
17. Intermarket Analysis
• Cascade effect: Currency affects commodities, which affects bonds, which affects stocks
18. Stock Market Indicators
• The more market averages move together, the stronger the trend
19. Putting it all together
• A checklist is made to systematically analyze the market and to facilitate decision making
20. Appendix
• Advance Technical Indicators
• Market Profile
• The Essentials of Building a Trading System
• Continuous Future Contracts

Anyone who wants a well-rounded picture of technical analysis is highly recommended to read this book. Just be warned that it is not for the leisure-reader or the light-hearted.

The Makings of an Asian Entrepreneur

Paperback: 120 pages

Publisher: Prentice Hall (April 2004)

ISBN-10: 9812446834

ISBN-13: 978-9812446831

Kenny Yap is the executive chairman and managing director of Qian Hu Corporation Ltd, listed on the Singapore Stock Exchange. The family-run fish business is diversified but is most famous for its ornamental fish.

This book proves that a family-run business can be successful if it is well-managed and driven by passion. Kenny mentions the following as the qualities that keep the family business going:

1. Define roles and responsibilities
2. Everyone contributes and works
3. Communicate frequently, both formally and informally
4. Get in-laws out of the picture
5. Passion and drive
6. Passing down of family values and house rules
7. Be strict and firm, yet patient
8. A succession plan that need not include the next generation

Kenny peppers his book with comics and nostalgic photographs. His Chinese sayings give it a truly Asian touch. He mentions about the initial failures and about the balances the business has to make. They include family and work life, profiting and social responsibility, crisis and opportunities embedded in them, the decision to take the business public etc.

He places much importance in

1. Education
2. Networking especially with the government and the community
3. Harnessing the media
4. Being transparent and accountable
5. Giving back to the community

There was much advice given on being an entrepreneur, taking a company public as well as expanding a business abroad. The biggest difference is his opinion on having friends and family in the business. I figure that their success in this is their ability to communicate and work things out.

Finally, Kenny ends off with ‘fishy’ and insightful parallels of business management with different types of ornamental fishes.