The Best Stock Market Trading Book on Earth

[@KpxUrz5745]

A long time ago, when John Murphy worked in lower Manhattan at Merrill Lynch in commodities and technical analysis, I had the interesting experience of being brought in as a short-term freelancer. He asked me to produce large display artwork of sample barcharts to demonstrate various patterns in technical analysis such as Head & Shoulders, and Cup and Handle, etc. These were used as teaching guides for Merrill to train their traders. At the time I did not know how famous Murphy would become, as the "Father of Technical Analysis". Actually that experience helped inspire my love of financial charts, and I have spent thousands of hours studying charts of stock, commodities, and forex, and trading in these markets for decades.

[@TheMathSorcerer]

Wow, best comment ever, such a cool story!! Thank you for sharing this!!!

[@KpxUrz5745]

@@TheMathSorcerer And perhaps I should add one more little detail. In part thanks to John Murphy and my years studying technical analysis fully, including teaching myself to write code for algorithmic trading, and so on, I am now a multi-millionaire and still actively trade every day. I just love the markets and the whole game of figuring ways to successfully invest and speculate! By the way, back then freelancing for Murphy, I had few real credentials, so probably started at near minimum wage. Maybe my own little story will help inspire upcoming young people fascinated by the possibilities of chart study and analysis. Once again, a big thank you to Mr. John Murphy!

[@shahnawazaziz7806]

Real Q. Did you make any money after spending thousands of hours chart reading?

[@KpxUrz5745]

@@shahnawazaziz7806 Real answer: Working for Murphy was my first exposure to technical analysis of price charts. Notice that I was producing graphics for him, and was not hired as a financial analyst. I did not jump right in to start trading until several years later. At that time Murphy had not even published his famous book yet, I believe. Anyway, having become totally fascinated by technical analysis, chart study became the basis for all my trading. Now it is quite a few years later, I have read many many hundreds of books about trading and analysis and taken many trading seminars, even gone back to college after my Ivy League masters, taught myself coding for trading strategies, etc. I still love trading as much as ever, and have made a real fortune at it, now measured in millions. I hope this answers your question.

[@LuminoAlgo]

Damn, finally someone that talks about the real path for success, can relate

[@hasantao]

I read this book and I think this is the best book. There are two other books that can accompany this book: 1. Technical analysis of stock trends 2. The handbook of technical analysis As far as technical analysis is concerned, I believe these three books cover 99% of what you need. The rest is practice.

[@TheMathSorcerer]

Nice!!

[@ghumkandii]

please mention the author’s name of these two books

[@hasantao]

@@ghumkandii Robert Edward's for the first book and Mark Andrew Lim for the second one.

[@ghumkandii]

@@hasantao thank you so much 🥰

[@rouz.cryptobulls]

Thank you❤

[@greenmartian5058]

I collect financial books myself ranging from accountant, management, economics, investments, and technical analysis that all show math formulas. Technical Analysis is 100% mathematics. My favorite technical analysis book is Fibonacci and Gann’s Theory.

[@acousticide]

I have studied charts for 30+ hours a week for 3 years now. No indicators except a simple moving average. If you look long enough, you will realize there are so many mind boggling coincidences in the chart. The charts are living breathing entities and provide all the information you need to know about where it's going.... the challenge is figuring out WHEN it will go to it destination. I only believe in TA, and I'm convinced that news, events, and "catalysts" are only tools of the chart take in the necessary direction. I will check out this book.

[@RetroNels]

I'm surprised you have managed to get through three years without coming across this book! But yes, finding that charts repeat similar patterns is a real "wow" moment, isn't it. Additionally, it's really interesting seeing main stream media attribute a stock's movement to fundamental news when it clearly isn't the case (though, sometimes it is).

[@edalarconreal]

Everything in this world is about patterns and cycles reflected in charts…

[@diamiind]

😊

[@vjan9003]

@gussstavowhat do you mean huh? It’s clear and understandable

[@OverAndOverAndOver]

Research "Inner Circle Trader" G, you're on the right path

[@gregorywhite921]

As a PhD student in electrical engineering many years ago, I ran across Elwyn Berlekamp. He wrote a book, Algebraic Coding Theory, when he was 28 yrs old. He devised an algorithm, called the Berlekamp algorithm ( go figure), that efficiently decoded a class of algebraic codes. Few people, even most professors I would claim, understood why it worked. They just teach the process. Fast forward a number of years, and he’s working with Simons (another math professor) on the Medallion Fund. Those guys know something most people don’t. You might be interested in Information Theory, or Shannon Theory, as it is sometimes called. Basically discovered by Claude Shannon. It has applications to the financial markets and a lot of other fields.

[@sentientartificialintelligence]

wow... did you go to MIT? that's really cool!

[@MohammadMohsin-f7e]

Your comment is an endless loop. What do you intend to say?

[@ashwinnair4816]

Thanks for sharing

[@user-yc9cr1tm9m]

I already have many years as a trader and investor in Brazil, and knowing how to analyze the charts helps me a lot, you are absolutely right. I really liked this book, I will buy it as soon as possible, thank you.

[@Cheesecake99YearsAgo]

Have you bought the book? How much did you gain from it ?

[@thefxautopilot]

THIS was the book that set me on the road to becoming a career trader. Yes there are other books but you must read this. It is the backbone of everything a technical trader needs to know. Armed with this book, and the psychology of a trader, the rest is just noise. A brilliant piece of work and I'm thrilled that it's being highlighted here

[@akg1301]

How is the latter book?

[@markbaugh6083]

I have this book. It is the conceptual standard on the subject. I meet people in professional settings that claim to be ‘quantitative’ but mock ‘technical analysis’. Technical analysis is merely the visual representation of price and volume quantitative data. The mathematical/order-flow trade systems I work with use technical analysis constantly as one component group in our weighted decision tree to determine entry-exit locations and allocation size following decision-rules based on probability and fundamental micro/macro-economic financial data. I’m pleasantly surprised you covered it. Thanks. Love your channel.

[@perodyx]

I've always read that technical analysis is like tea leaf reading, that no two technical analysts would come up with the same conclusion. Is that wrong?

[@omshree901]

​@@perodyx in most cases they will arrive at similar conclusion but their degree of conviction will vary. Mainly because trendlines vary with timeframe. Simply put, trend observed within the last 6 months maybe different from that observed in last 3 months.... Its about timeframe. For casual people, just buy an index fund or if you have a specific target sector for some reason then buy a mutual fund.

[@javierlol278]

Bands are bad visual representation if expected growth or decay of price, that are tradeable throughout. Yes. My question is what kind of player and background logic is drawing them all.

[@williamJohnsonq8f]

Investing in stocks may appear simple, but selecting the appropriate stock without a proven strategy can be tough. I've been trying to develop my $210,000 portfolio for a while, but the biggest hurdle is a lack of a clear entrance and exit strategy. Any feedback on this topic would be greatly welcomed.

[@AaronTilt]

I'd suggest you discuss with a proper advisor, particularly if you're new at investing or facing uncertainty. I personally have over 180 companies in my portfolio, so if few companies fail, I still have others that can hold me up.

[@camille_ann3]

Agreed, investing with the help of an advisor set me up for life. Retired with about $1.6m in stock portfolio only. I worked hard everyday as a teacher for 32 years, and my salary was over 100k annually. Supplementing my income with stocks and alternative investments helped me by far beat the retirement age of 65.

[@Arnold-ic9jg]

I've worked in real estate for over 25 years and have neglected a major stock portfolio. This served me well when I was flipping and renting houses, however I need a different plan now.. mind if I look up the professional guiding you please?

[@camille_ann3]

Sure you can! Judith Lynn Staufer is the financial advisor I work with. Just search the name. You’ll find necessary details to work with to set up an appointment.

[@Joeknowsball247]

Thanks for sharing. i searched her full name and found her web instantly. After reviewing her credentials and conducting due diligence, i reached out to her.

[@scottmandel6536]

One of the TD Ameritrade classes on TA started with the instructor telling us that purely analytical individuals were going to find TA very challenging. I'm in that camp. That being said, I feel those who have mastered TA do have an extra toolset to use with investing & trading. Those who only want to appear to have mastered TA are great at pointing to a past chart pattern and then claiming the result was predicted. But, they aren't very accurate with current patterns and expected results within the next couple of weeks.

[@Willywillscheng]

I recently got into the KZbin financial niche, and I’ve taken a deep dive into trading. Particularly, day trading as it interests me. I have tried multiple methods to build my portfolio in the past. So far I’m making progress with expert help. Back to the video, wonderful job there.

[@Willywillscheng]

@Akina M OtienoGiven that successful trading is a rare feat and even rarer on a consistent basis, there are many reasons to stay away from trading entirely. I’ve worked hard for my money and avoid putting it in unnecessary peril that is why personally, I don't underestimate the role that professional guidance plays as Herman W Jonas, an astute fund manager who uses high-frequency trading and investment strategies, oversees my trades making sure that I have a robust portfolio.

[@Dennisseat]

Putting money into profitable assets has always been top priority that’s why I trade because it affords I and my family the opportunity to live an incredibly fulfilling life, and I just don’t mean financially. Time wise also. I started out with Herman about a month ago and it’s surprising to see the rate at which I’ve had consistent growth. Even got my third payout last week. Real stand-up guy.

[@LovelyRubyruby]

The past two weeks has proven that I can recover from a 60% loss all thanks to Herman. So far, for every action drop, there is a reaction gain. My initial investment of $2k brought me an roi of $7k in a fortnight. I’m definitely reinvesting.

[@LovelyRubyruby]

@Emmanuel GaithierSure, Hermanw jonas (a g mal comm

[@Halllaand]

I must note that I have had some losses since I started trading in late July of last year, but they are nothing compared to the profit I have made trading with Herman. The experience feels much better than in other places and brokers where I’ve traded in the past.

[@UpGradeTutoringSolutions]

I would also recommend “Reading Price Charts Bar by Bar” by Brooks. It reads like Tax law and it is going to take a ton of work but it WILL take your trading to the next level if you are serious about learning it.

[@Danyruddy7]

My man, this is my neext book to read, I've heard a lot about it.

[@Seramics]

​@@Danyruddy7 hows the book? About to start.

[@TheMagykKonch]

You the man for showcasing this. I just bought it 👌🏼 Edit: *thoughts on TA* it works, beyond a doubt. The portfolio killer is the absence of risk management(which is fancy talk for STOP LOSS). My 2 pieces of advice for new booties is 1. Learn the basics of TA (supp/res, TL’s, and Chart Patterns (both continuation and reversal) and 2…….. SET A STOP LOSS. STOP LOSS IS MANDATORY ON *EVERY* TRADE

[@xdrowssap4456]

technical analysis only works short term. spot a trend exploit it, move on. it works in a market that is not weak form efficient. but the market becomes efficient pretty quickly so the window is pretty short

[@italosantos9174]

@@xdrowssap4456 short term? how so

[@Navaneeth109p2]

Is there any alternative of TA that works every time then?

[@giftapfel]

​@Kanyee_eastlol Trading is probability, so no.

[@mostafizurrahman2694]

It feels like you're more passionate about this than math. 😆

[@KonaduKofi]

😂

[@kurtfisher1379]

Keep in mind that 70% of the US Stock Market is traded automatically by algorithmic directed computers. Humans are not making trading decisions as occurred when Murphy wrote his book in 1999. Murphy's identification of a psychological aspect to trading decisions may have less weight than it did historically. Conversely, the psychological component is well recognized in macroeconomics. Nevertheless, I think it's a good trading book and useful knowledge to have.

[@mfaracing]

Spot on.

[@isiahfriedlander5559]

HFT should be banned. Yes, it adds liquidity to the market, but eventually the market will not be human anymore

[@optimizedpran1247]

@@isiahfriedlander5559 If HFT was banned you'd go back to paying sky-high commissions and waiting for ages for your orders to be filled. HFT is the technological infrastructure upon which the market is built.

[@alexfortin3761]

@@isiahfriedlander5559 With AI coming up, it surely won't be human anymore. So no need to worry about HFT

[@johnp7739]

There was algorithmic trading back in 1999 as well. Some blamed the crash of 1987 on "program trading," which was probably a more simple form of automated trading based on big moves and stop losses being hit.

[@orenmartinfx]

This is the best channel 🏆 I am a trader,and i tell you.....what you show here.....its everything!!!

[@A_francis]

Great video.... I got out of the real estate investing market about a year ago. I think it's time to get into the stock market but what's the best strategy to invest around 200K in this current market?

[@RickWatson-xu6gw]

It's wise to seek expert assistance when beginning your financial portfolio. market is volatile, so professional guidance is so important..

[@RobbStonee]

This is why I entrusted a fiduciary with my investmnt decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to over $850k. My personal best so far

[@ashey-l3y]

I could really use the expertise of this advsors

[@RobbStonee]

Her name is ‘Marissa Lynn Babula’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@benitabussell5053]

Thank you for the lead. I searched her site up and filled the form. I hope she gets back to me soon.

[@JanPBtest]

Few months ago in an interview (forget which channel) a Fidelity analyst mentioned two types of best-performing accounts there: (1) owner deceased, and (2) abandoned accounts. Food for thought 🙂

[@johnpulawski35]

the more you trade the more likely you are to be wrong

[@sidcoolguy7]

exactly

[@JanPBtest]

@@johnpulawski35 Yes, meaning: if you are not a professional. AFAIK over 90% of amateur traders lose money (someone correct me if I'm wrong, I'd like to see a source for this statistic).

[@krishrong2560]

Just start reading it even though I had a previous bias that it is not much useful, but after I open my mind I gain a lot from this book.

[@mjs28s]

Combining technical with fundamentals is the way to do. Fundamentals tells you if something is undervalued. Technical analysis can tell you if the price is ready to start to move up. I'd rather start a position in a stock that is undervalued and about to move up (not that technicals & graphs are gospel) than buy an undervalued stock that has another 25% down move over a six month period, or more.

[@TheMathSorcerer]

Wonderful comment, great stuff:)

[@MARKCRASTO]

True. Use CANSLIM

[@theclown888]

The Simple Path to Wealth. Index funds. But I see the pull toward TA from mathematics.

[@nubee2bee580]

I did well in future options by using a charting analysis strategy, so I'll get both books. Thanks, Math Sorcerer!

[@optimizedpran1247]

As a mathematician - I am surprised that you believe in technical analysis. There is so much work done in probability theory and financial mathematics that renders technical analysis obsolete. Quantitative analysis and quantitative research is the way if you're into using mathematics in markets. I suggest a book called "Advances in Active Portfolio Management." Price data is far too noisy and a noisy time series cannot be forecasted using basic smoothing techniques.

[@optimizedpran1247]

It's on portfolio management but also a very good introduction to the field of quantitative trading and grounds a reader in how to evaluate the performance of a portfolio.

[@a1vin]

As a successful day trader using many (but not all) of such techniques described in this book, yes what you say is absolutely correct however, when used correctly technical analysis is all that’s needed to be profitable when DAY TRADING. Investing and portfolio management is obviously better when done with mathematical modelling and data. Many try to disprove TA but remember 95% of traders lose money but find one which is profitable and they’ll show you why TA works when used correctly.

[@TheMathSorcerer]

Wow thanks for this comment ! Day trading is no joke !

[@a1vin]

@@TheMathSorcerer if you want to find out more about modern day tools, definitely research on theories like, time-price opportunity, liquidity trading, order flow, and the fundamentals on WHY support and resistances work. These delve deeper into the markets by leveraging actual trading volumes and market moves which helps decode much of the ambiguity and ‘unreliable’ impressions people often have about the TA in the book. Of course these are only a few tools but as a mathematician also, I utilise these since I prefer tools with actual data involved.

[@sta1RR]

Its just what works for you mustbe used.

[@allenofatlanta]

Technical analysis is not absolute. It's not a guarantee to achieve profits. It is, in the strictest terms, a graphic probability indication of where the price movement of an asset " may" be within a certain period of time.

[@anthonyballog8026]

You are 99% correct. I say 99% because most people use the wrong chart. The trend is your friend and nothing else shows this better than point and figure. All other charts have cognitive bias as to the true trend. Historically 3 box breakouts sets the trend. Moving averages are good but when they end you have no indication. 3 0's and I am out. Consolidation will kill you and that is why money management will help greatly. I use different forms of atr.

[@kurtsalm2155]

The trend is your friend until the bend at the end. Or, if you prefer: The trend is your friend until it's not.

[@MCclub4you]

TA is great, it is one of the risk management tools that a trader has in its toolbox. In my opinion there are other aspects that are equally if not more important; trading psychology. It's great to find recurring chart patterns and structures, but what if you can't hold the trade due to lack of patience, an intolerance to uncertainty about what happens next, being overly emotionally invested. These are all factors that show up after you did your analysis and entered the trade. Luckily, we can develop the strategies that fit our personalities. Having that said, I loved this video and this looks like a great book! I wish everybody great success in their trading career :)

[@83jbbentley]

All a stock chart is a reflection of human behavior. Technical Analysis is great. It’s a useful tool. I’ve always liked value investing the most though. Everybody has a different rhythm to trading but TA is handy to know.

[@MOTV583]

I might have read your comment wrong but value investing and trading have nothing in common. Comparing a trader to a value investor is like comparing a sprinter to a marathon runner.

[@83jbbentley]

@@MOTV583 no, I just said I prefer to value invest. TA can help you make a play but some people want to turn a quick profit. Nothing wrong with a quick play but mostly I do long term investing.

[@shaunsensei6948]

So glad one of my fav youtubers who is very much into Math and stuff doesn't sh*t on technical analysis (usually its's the "smart" people who hate TA) . I use TA and god it certainly gets you the profits most of the time so WHY NOT??

[@tuna3875]

Hey Math Sorcerer, I have been subscribed to you for a while, and I have always thought "Hmm... TMS might be really interested in trading given how passionate he is about math." I am 19 years old, pursuing a career in intraday futures trading, while trying to get a degree in Mathematics. The markets are created for people to lose... One of the key elements that go into my trading is that successful traders separate themselves from the 95% herd, or so called "retail traders" whether it be in regards to discipline, psychology, and even technical analysis. In my opinion, many of the technical analysis currently spew out very easy concepts to understand which rallies the majority of traders to come into this field to fail. Unless you can employ logic that successfully fades retail trading, you will continue to be prey alongside the masses.

[@TheMathSorcerer]

Oooh futures! I’ve traded those! Exciting stuff!

[@tuna3875]

@@TheMathSorcerer Out of everything I've tried, futures has been my favorite. I'd be interested in seeing you dish out more market-related content! 😀😀

[@edgardosantana]

This feels like a Godsend. I just found this video and am making my way into this world. I really wanted a book to understand from a fundamental level the theories behind trading. Thank you for an enthusiastic and detailed review!

[@RickyBullock]

A picture speaks a thousand words; show us how this book has helped you by showing us your accounts.

[@Antonin1738]

problem with a lot of these older books (and yes that includes Lynch's books) is that they were written when they were trading before heavy computers/AI/algorithms. Yes the basic tech analysis still applies if you want to trade. But a lot of the trade/stocks examples they give in the books are from before 2000s, heck even before the 90s. Yes Coca Cola was a good buy back in the day....of course....

[@KpxUrz5745]

Computers and algorithmic trading have not improved upon the results of a skilled technical analyst. Sure, multi-billion dollar research centers have their ways of front-running all of us, arbitrage, etc, but the lone trader cannot benefit from that. Good technical analysts can make millions, which is good enough for the small individual trader.

[@tilelate9718]

i dont use any indicators. Just look at the monthly, weekly, daily candle body closes and use that as support and resistance set ups, with trendline confluences. H4/H1 as entries.

[@Pteromandias]

The cool thing about technical analysis is that enough people believe that it works that they set up their trades around TA signals, and that is what makes it work. Other than that, it's utter bunk.

[@kquat7899]

What you need to know about technical analysis you can write on 1 sheet of A4, but I wouldn't touch the markets without it.

[@corp9655]

Your right it is the best book...I stumbled on this book 15 years ago...I felt like I found a hidden gem and wondered if anyone else knew about this book.... another good book is options made easy....if you want to learn option trading best book

[@alphafound3459]

I am somewhat agnostic concerning technical analysis. However, the 1937 article, "The Summation of Random Causes as the Source of Cyclic Processes" by Eugen Slutsky has unexpected insights that might be used as a coutnerargument to some technical analysis techniques.

[@rich_in_paradise]

The only book you need to read is Fooled By Randomness by Nassim Taleb (who by the way, was a trader himself and write an old but still highly regarded book on quant trading called Dynamic Hedging). He wrote nothing about stock picking because there's nothing to write about stock picking that can have a mathematical basis.

[@kevinkasp]

So how do you explain Jim Simons, a Ph.D in math who owns a firm called Renaissance Technologies whose sole activity is using mathematics to pick stocks? A company comprised almost entirely of Ph.Ds in math, statistics, and computer science, and whose performance beats everyone else? Unlike Warren Buffet or Ray Dalio who takes in billions of other's money to trade, Renaissance Technologies just trades using their own money and split the profits among the employees. Jim Simons himself has made close to $30 billion trading mathematically. One strategy I know they employ is they find pairs of stocks whose behavior is nearly identical. Then when suddenly the price of the two stocks diverge, Renaissance swoops in buying options betting on the fact that the gap in price between the two will close again, and pretty much, they are nearly always right.

[@Amin-er9lk]

​@the UN = MASS MURDERERS you mean Renaissance Technologies uses hidden markov models to exploit the divergance of similiar stocks?

[@MaxoticsTV]

@@kevinkasp Renaissance doesn't predict stock prices with math, as much as predict which arbitrage errors the big institutions will ignore, then swoops up the 2nd-hand trades. They're a massive garbage collection system that understanding the weaknesses of the technology used by the big traders. It's like saying ThredUP, Poshmark, Treet, and Recurate predict fashion trends. They don't, they just know how to buy fashion when improperly priced efficiently to resell.

[@shaus81]

Mathematics is everywhere

[@randyl5205]

Really enjoy you showcasing these various books. This one is now on its way to me.

[@Bibi_Mbaape]

When you look at whether prices actually move in trends, you see that price movement don’t tell you info that will allow you to reliably beat the market, or a simple buy and hold strategy. Chartists don’t want to accept this theory because it puts their entire art in question. Plus, the randomness of prices is hard to accept. - Burton Malkiel, A Random Walk Down Wall Street

[@SR-gy1mi]

I use only the EMA and candle signals to buy and sell and market support resistance levels structure That’s it.

[@kokwahtan8577]

Nature of bness, Financial reports, Minimum 5 yrs ratio of financial statements. Finally , investment is Long term and Emotion quality needed!

[@khafreahmose8768]

I just received mine yesterday! Can't wait to dig in!

[@Arsbars1]

OMG! I didn't know you'd cover smth related to trading at all! Just really cool to see from a HEAVY math person! Amazing:)

[@jensroeckendorf382]

I started learning trading in this year and I want to buy this book in this week to continue my journey and eperience with trading. Thanks for this video!☺

[@dolevmazker736]

The question I would like to ask is how has this book help you trade. Since you understand math in a more profound way than others then i really think trading might work for you. So since reading this book how has trading gotten better for you?

[@vitorgohsev4938]

Technical analysis is never used for prediction, the pros use it for risk to support their thesis. Eg if this lower high gets broken I will add short or cover position. Try doing that with any other form of analysis on stock. Trading is a picture, and the tools you use to paint the picture is up to YOU. If you only use pencils you certainly will end up with a grey image.

[@AnotherDante]

This reminds me of the IQ Bell curve meme. On the left we have the layman saying it works then moving on to the middle actual people on the finance industry that say it's like astrology and lastly we have quants who can somehow create a profitable trading strategy based on lunar phases and the tide.

[@GicaKontraglobalismului]

As we say in Romania, "In Tara orbilor, chioru'e'mparat." Then this is an international proverb!

[@GamuchiraiZororoNdawana]

Technical indicators are also easier to forecast than price levels. And being able to forecast the indicator, tells you something aboht future price levels. Even Ordinary Least Squares can get the job done

[@alexforget]

"One up on wall street". Make your research, find one great company a bit before most of people, put your money, let it do it’s thing for years. We had Amazon, Apple, Google and now Tesla who are no surprise to anyone following the tech scene. They all did 10X, 100X or more. Tesla will still 10X in the next five years. Something huge will happen with AI too. Microsoft, NVidia, TSMC are well positioned at the moment. Basically what the nerds are interested in now everyone will get on in the next 5-10 years. You only need to find one or two in your life. Charts can help too, it’s a way the emotions of the market speak but it’s a fractal and most of it is competed away.

[@plantbasedanalyst6263]

Got to disagree on the Tesla part. This valuation is already insane. No way that it's a ten-bagger from here. the competition is just heating up. Tesla is already having to cut prices.

[@jonathanpopham5483]

Sheldon Ross has a book called An Elementary Introduction to Mathematical Finance which was useful for learning about Geometric Brownian Motion and Black-Scholes.

[@TheMathSorcerer]

Thank you I will get this book!

[@a1vin]

Great video, sorcerer, as a profitable trader using mainly TA I was extremely surprised that a reputable person like yourself would actually vouch for TA. Of course, many theories in this book are extremely outdated and pretty much obsolete it still covers the general gist of what modern day TA is. Remember that TA is sort of a bi product of human behaviour, statistical observations and patterns that occur because of factors which drive the market.

[@TheMathSorcerer]

Thank you for this comment ❤️❤️

[@Danyruddy7]

"TA is sort of a bi product of human behaviour, statistical observations and patterns" I've been learning trading for almost 6 months and having a background in CS can say that this is the most precise definition that I've come across. So, journaling is the key. Probably I'm missing something more but until now am gonna stick to what worked for many successful trader.

[@a1vin]

@@Danyruddy7 Great to hear you're learning TA so i'll give a few tips. 95% of traders lose money to statistically speaking, the odds are heavily stacked against you. The best thing you can do is really master the basics (SR levels, market structure, and pay attention to volume) and you'll be good to go. Avoid relying too much on patterns and especially indicators (not saying they're bad though), many beginners fall into this trap and this is where they quit or lose money. Lemme know if you need any advice ill be happy to help

[@Shaktobengalee]

As you have said in the above comment many theories are outdated; so can you guide me the best book you have read on TA/FA that actually works & will work in accordance or atpar with the modern Institutional investor's HFT Trading or Algo trading systems? Or Is it really difficult to beat the system & winning the probability risk factor against the market makers?

[@a1vin]

@@Shaktobengalee I certainly can, but I think you've got the idea of TA and HFT algo's mixed up, because they are not the same thing and HFT's use entirely different approaches to TA. So unless you've got extensive knowledge on building HFT's (which I do not) or CS/Finance education and have experience as a 'quant' it wouldn't be possible to build a trading bot like institutions. But as a normal trader, the best way to learn is to get as much experience applying TA you have learnt on to the chart and taking a few trades here and there. I haven't read a single book on trading but instead opted to explore different areas by researching online and of course building up experience on the chart. If you're a total beginner the book in the video is not a bad starting point at all.

[@MrSinghSAmit]

This is a gem…every trader should read this one

[@JoshuaAlexGeorge]

trading is a zero-sum variable rate business similar to sales it is like athletics so you also need to be best physical shape mentally and physically. It is not for everybody. Trade options or futures sound cool on paper until putting real capital and trading, not child's play treat your real job. Trading 95% psychology and 5% strategy and execution. Fix the operator yourself and get a trading plan before starting a trading plan tailored to your risk profile and your time horizon I would recommend you read this book. TRADING IN A NUTSHELL: PLANNING FOR CONSISTENTLY PROFITABLE TRADING by Stuart McPhee. Good Luck on your trading journey.

[@thanevakarian9762]

How can anyone say TA is useless? You can literally back test things? Even if you’re right 50/50 if you have the right tools and plan in place you can literally win! In my humble opinion as someone who’s been trading and investing for less than a decade with increasing levels of success it’s all about learning your emotional profile and what triggers your emotional responses and having a plan to deal with that and everything else. No half assed anything. Basically be a robot.

[@nickopetra]

I have that book and the workbook, its is a textbook format. Great material "Options Volatility and Pricing" is another great book.

[@hudablack1330]

I tried to enter the stock market and I always lost money, even though I bought at the lowest price... so now I prefer to directly sell food and drinks with a net profit of 20-40 dollars every day

[@cerosietebpositivo351]

Love the math involved in TA!

[@scramjet4610]

Would be interesting if you did a video on Renaissance Technologies, to see your take on that.

[@anthonypeak1]

I liked Thinking Fast and Slow by Daniel Kahneman however its not a book on trading. The prospect theory part is the money maker. Profits never feel like theyre enough and losses always feel worse than they are. So overcoming those two irrational thoughts helps minimize losses and maximize opportunity

[@TheMathSorcerer]

Hardcore, this book sounds WONDERFUL! Thank you for this comment by my friend:)

[@atticus_foust]

It's so weird you posted this, I just began a c++ project on trading scenarios with real-time data.

[@JoshuaAlexGeorge]

Risk management a great traders are great risk managers.

[@LifTyLyM]

The book is probably good for building an intuition of trading, but to be a good quant it's likely better to have a PhD (or equivalent experience) in machine learning, signal processing or similar. Typically one says that physicists and mathematicians make good quants, and they probably do, but people with PhDs in ML and signal processing usually have engineering backgrounds and for that reason more practical experience, which is important for a field like quantitative trading.

[@BryWMac]

I agree but there are people who instead of doing their research and study in academia they did it in industry and all of these technical indicators in this textbook can be used in a neural network.

[@thecentralscrutinizerr]

I've had the old blue book for 15 years. Still trading. Just so everyone knows - the Central Bank can, at will, crash the economy. They can make things very difficult to the "lower class" citizens, the "middle class" citizens, and the "upper class" citizens. As more than one "financial expert" has said, "They have you by the balls ... would you prefer they tickle or squeeze?" Until you understand that the governments that supposedly "represent" you are completely at the mercy of the Central Bank (the hand that lends is above the hand that borrows) then you'll begin to understand who really is the master and who is the slave. And this battle is what caused the American Revolution. This battle has caused numerous wars throughout the world throughout history itself. Who is the slave and who is the master. Who lends and who borrows. Who repays and who is defrauded. Money is the god of this world. And to prove that point, they even put it on the money itself - "In God We Trust". In this god you do trust. The wise man knows ... Not everything is valued in money. Nor worth by lack or abundance of it.

[@Lukas-cm2b]

trading is so much wide science now, it's so much wide. so much information, types of games, possibilities, players, variables, really

[@Enigma758]

I think the "something" over nothing is true, but the "something" can also be the fundamentals of the companies you are investing in.

[@TheMathSorcerer]

True

[@michaelsixty-five2724]

Fundamentals - investing TA - trading Both - watchlist

[@danielbrink9475]

the Quarters theory by Illian Yotov is still applicable in the currency markets cause banks And Bfi's need to distribute their positions to what they consider fare value because they take both sides of the deal.

[@TheMathSorcerer]

Interesting! Thank you for this comment!!

[@1kennylo]

Gonna grab this

[@DanPocketRocket]

Great vid! TA is better when combined with the law of large numbers

[@econogate]

Put this on my Christmas list this year thanks to your excellent review.

[@leoxd7029]

Technical analysis is good for timing and timing only. Charts don’t generate trade ideas or investment ideas. If you want a genuinely valuable book for investing: Margin of Safety. It is rather expensive though.

[@staircasefx9104]

i have read those, that book only summary from various technique, just digging one of those technique deeply and you will find something.

[@financeacademy1608]

Its better to combine fundamental data or Volume Indicator based Trading to have higher odds. You will Not have any Advantage if you do what anybody else do ! Its not that easy ! You have to put in the time to develope an edge in the market !

[@jayc6527]

I use it for futures trades, routinely turn profit. Just remember trading is different from investing. For my long term investments I hire a professional.

[@ErnestoHorner88]

Fantastic video..The bull market is about to start, hurry up to buy promising coins like Pepennedy or others.

[@Morrisbraga-jm9lc]

Absolutely. It's an exciting time to be in crypto. Strap in and enjoy the journey.

[@Brett_trejo11]

Can you pls recommend me a professional?

[@CathieGomez-mp8sk]

Yes grahamconsults

[@Owemruther-hk4zn]

On telegram?

[@DonnDenisse]

Yup as grahamconsults

[@slhermit]

Stock market may be a chaotic system that is not predictable in long-term, but may be some what predictable in short-term. The error of the prediction may grow exponentially hence, long-term predictions become worse. Hence, tech analysis can be a useful tool in high frequency trading (HFT). Tech analysis with ML, may be useful in delivering better trading strategies in HFT.

[@ShadowMind312]

I recently purchased the complete guide to futures market by schwager. I think it includes everything from murphys book

[@tonynunez6539]

Technical analysis is a historical record of past action and performance and not future results or predictions. Options allow you to make money on short term consistent movement with more accuracy and reliability. Learn both and decide for yourselves.

[@christophercarr1630]

Outstanding upload Professor.

[@TheMathSorcerer]

Thank you! I can talk about this stuff all day. Love the markets!

[@billylee5624]

Man not to say I'm too good for TA, it is certainly useful to complement your financial models. But I want to look in depth into the derivatives market and how they use formulas to model and perhaps forecast prices for financial instruments like stocks, bonds, or foreign currency. Have you guys taken a look at FX Options and Smile Risk by Antonio Castagna? It requires some involved math like PDE so I couldn't understand the book as my knowledge of math only goes so far as Multivariable Calc and Graduate Economics aka Linear Algebra.

[@el-sig2249]

Murphy's book is the Bible of TA. I have a copy on my shelf and I've read it more than any other trading book I have.

[@redpanda456]

Excellent video. In depth review, great job. I am now sold on getting that book!

[@algoa456]

Unfortunately one cannot post an excellent cartoon on how numerate individuals approach the market so let me try and summarize: Panel 1: A clearly numerate individual in front of a computer says, "I'm numerate and know about mathematical modelling....." Panel 2: He says with a confident look on his face, "the stock market is about numbers so I should have no problem making money......." Panel 3: Same individual looking somewhat nonplussed, "Whoops.......where did all my money go.........." 😂😂😂 I agree that Murphy's book provides and excellent overview of TA that captures the emotional ebb and flow of the market. By the way many simple TA tools are behind the scenes simply digital filters - even the humble moving average - applied to price fluctuations.

[@bernietgn6406]

Great channel and great subject too. I would suggest considering Perry J. Kaufman's book "Trading Systems and Methods" as the best one. It's just a suggestion.

[@krwada]

I just went out and bought the book!

[@dezinerg]

Agreed, however I'm not sure why high frequency trading is allowed.

[@amazingsnow]

The problem is the information is accurate only after the event happened and no system tell you with any certainty that is worth putting your money on a bet before something will happen.

[@down-the-rabbit-hole]

you don't need to be right all of the time to be successful at trading. You only need to be right around 60% of the time as long as you have your exit plan in place. I use TA to hit that 60% which is why I'm no longer working thanks to options trading. Without TA this would have never worked.

[@MHN212]

Thanks for the review. I read this book a while ago and I should probably read it again.

[@memilh]

Love you channel! Great review of a great book. Thanks so much, Math Sorcerer.

[@econogate]

Thanks for the run down on the book by the way, enjoyed it.

[@teddyboy252]

Ted Warren's book 📖 is worth a read!

[@colinmaharaj]

Hey, I lost it ask in the stock markets recently, but I'm coming back at it again, a lil technical analysis will help. But I'm coming up with better strategies.

[@Rhunl15]

can i apply the ideals in this book to crypto trading as well ?

[@souradipmukherjee6986]

Since when you're in the market?

[@XAUCADTrader]

Random walk is a very important mathematical system in markets... This is why quants have trouble making money. But they do well, I know one that makes 1 million a year. They're a math major/masters.

[@peterlightning9235]

It's not perfect because people do unpredictable things. But it's helpful as a guide.

[@Omeomeom]

But in 2023, we should have refined these concepts even more and made deeper insights that you wouldn't get by reading this book, or maybe there exists an even more bleeding edge book on these concepts that you could read instead? Just wondering.

[@ivantirtakusuma]

I am a profitable trader since 2019. The books that changed me was Reminiscences of Stock Operator and Market Wizards. It's crazy

[@coreymack6208]

I love your enthusiasm. I do have to ask though. Do you have the results to back what you’re saying about the book? Did you yourself make money because of the book? That is the only real tell if a stock market book is the greatest or not