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  #1 (permalink)   Spam Kill
Old 12-02-2006, 01:46 AM
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Systemic Systemic is offline
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Need a T/A book.

What is a good T/A and Fund book I can buy or get from the library? I have enough heavy reading for class, so a beginners book would be appreciated. I already know a bit about T/A, none of Fund and ZERO about Quant. If there is a book that explains techniques in ways that I can actually apply to paper trading, I would be a happy dude.

Thanks.
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Old 12-02-2006, 05:08 PM
nirav34 nirav34 is offline
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I find Options exciting. Try "McMillan on Options", great book for beginners. Lays down the foundation than goes into advance techniques.
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Old 12-03-2006, 09:05 PM
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Do the same technical analysis methods used on options also apply to stocks?

I still don't understand what an option is... Investopedia states:
"A privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date." But that dosent help me much.
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Old 12-05-2006, 12:44 AM
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I went to the Library and it turns out I don't have a Library card... Im also a minor, so I coulden't sign for myself...

Ill just order the book from Amazon or something.

Buracuracy is kinda lame...
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Old 12-05-2006, 01:30 PM
nirav34 nirav34 is offline
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Well options are derivatives of equity. You should learn the 5 greeks associated with options. They are Delta, Gamma, Rho, Theta, Vega. Options trading is based on leverage. Here's an example from Investopedia:

Leverage can be created through options, futures, margin and other financial instruments. For example, say you have $1,000 to invest. This amount could be invested in 10 shares of Microsoft stock, but to increase leverage, you could invest the $1,000 in five options contracts. You would then control 500 shares instead of just 10.

One word of advice, paper trade for a year before you even think about trading options. Also, out of money options can be very deceiving. I don't trade out of money options anymore, I only trade in the money options. You have to get the direction, volatility, interest rate, and time right in order to make some green. Keep reading and you will see what I am talking about here. It's very complicated to profit from Options, but if you get it right you could be set for life. Just ask Jim Cramer.

Last edited by nirav34 : 12-05-2006 at 01:32 PM.
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Old 12-12-2006, 11:44 PM
nirav34 nirav34 is offline
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I'm picking up this book from the library, Trade Like a Hedge Fund: 20 Successful Uncorrelated Strategies & Techniques to Winning Profits by James Altucher. Will let you know how it turns out.
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