I’ve been meaning to post up my review of Brian Shannon’s new book, Technical Analysis Using Multiple Timeframes, for quite some time but as I have already mentioned, my schedule has been crazy. Well, I was able to sit down and write a brief but hopefully a helpful review.

The book starts with a chapter on technical analysis which I recently listed as one of the 10 steps to profitable trading. I agree with Brian 100% that any person that wishes to become a successful trader must learn and start to master some aspect of technical analysis. He clearly identifies that technical analysis is not about memorizing chart patterns or funky images but about understanding the motivations of participants which may help in anticipating future moves. This is a game of anticipation more so than speculation if you play by a set of rules and attempt to do it professionally. Overall, Brain nails the point that technical analysis allows a trader to view the market with some type of clarity (this may differ from one person to another – especially in multiple time frames).

He says: “price is the only thing that pays”. Very simple but true. All the tools and gadgets in the world can’t and won’t help you trade more efficiently than using simple price action which can be monitored through charts or technical analysis. He says, in other words of course, that technical analysis is not an exact science and will not predict every move but it should allow an experienced trader make sense of the movement(s) they are viewing.

I loved the first chapter because I felt I was reading my own thoughts (almost word for word).

The next four chapters focus on the four stages of a stock’s cycle or movement (in Brian’s opinion and I don’t disagree):
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I wanted to point out that I highly recommend Newsflashr; more specifically, their business blogs page which displays the latest postings by many of the best blogs on the web. I visit the site on a daily basis to see who’s writing what about the market, people’s latest research or even more stock links. Everything is updated in one place and it is readily available anywhere I search the web. I understand that other RSS tools exist to monitor all your favorite blogs but there is something about Newsflashr that keeps me coming back.

I promise you that I am not plugging their website for any reason other than I use it myself. I am not getting anything in return to plug the site (that’s not my style). Take a look and perform your own opinion (let me know what you think).

On another note, please take a few seconds to sign up for my free RSS feed and receive my latest posts in your e-mail, if you haven’t done so already.

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• Newsflashr Business Blogs - Excellent Site!
• If you want weekly Stock Links - Kirk is the Master!
• Trader Mike has Great Daily Stock Links
• Tim Sykes has a Great New Blog Design
• New Car every 10 years or Used Car every 5?
  *Note: My family always buys used luxury cars (2-3 yrs old) - Best deal in the business.
• Dryships Stock Breakout a Beauty -Time will tell (new highs are a must).
• Top Weekend Hold - Rajin Agrees with Blain on DRYS
• Peak Oil, Peak Water.. We’re All Gonna Die
• The Importance of Keeping Score
  How much do you know about your trading?
• Ten Things Everyone Should Know About the VIX
• Visa on Wallstrip 4-28-08 Visa (V)
  It pulled back Friday but my position is up over 30%.
• Dollar Rallies and Gold Falls
  This is something I am watching as well.
• Gold Hanging on by Its Fingernails

I leave you with some great Warren Buffett quotes (they apply to today’s market and any market for that matter):

Risk comes from not knowing what you’re doing.

Wide diversification is only required when investors do not understand what they are doing.

Only when the tide goes out do you discover who’s been swimming naked.

A public-opinion poll is no substitute for thought.

If past history was all there was to the game, the richest people would be librarians.

Let blockheads read what blockheads wrote.

The investor of today does not profit from yesterday’s growth.

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The markets are closed today so chew on the excellent links below or read the top 20 posts on this site.

Absolut Must Read Links for Friday, March 21, 2008:

• Denial as a Trading Motivation
• What Level of Returns is Impressive?
• Say Goodbye to Agriculture and Gold?
• Gold, the Dollar, and Chicken/Egg Semantics
• Visa IPO: Too Much Hype - Consider These Top 15 In Demand IPO’s
• Interview with Corey Rosenbloom, from AfraidtoTrade.com
• Housing Bust Blame Game
• How to profit from a stock that’s plunging
• VIX Macro Cycle Update
• Recent Key ETF Performance
• Don’t forget to check out InstantBull and NewsFlashr