Reviews of market related literature Jan 22, 2010

Friends, books are a man's best friend ! Atleast every traders best friend. Please understand, there is no academy, college or institution that teaches technical analysis as a profession. Books are a prime source of learning. The process of upgrading skills can never stop and one must keep abreast of new developments to learn newer techniques. I have a friend who insists he " knows it all " - there is a cheque book and a broker that is required for being a trader. He refuses to invest in good books, read online or buy trading systems. He still goes out for dinner on weekends and tries to jump the waiters tips after settling the dinner bills !! His trades are of same type, size and character. In short, he is stuck in a time warp while the world has passed him by ! I hope none of our investors fall in that groove. That alone has been the motivating factor behind this section of our website.

I have reviewed a few good books I have had the pleasure of reading and share my thoughts below. It maybe noted that we do not distribute / sell / lend these books and therefore are a neutral party as far as recommending these titles is concerned. Your good wishes alone are our gratification. Happy learning !

Super Stocks I The Snowball - Warren Buffett and the Business of Life I Investing Against the Tide I Value Investing with the masters I Investing the Templeton Way I Reminiscences of a stock operator I Tech Analysis & stock profits I Stock market Rules I Tech Analysis for rest of us I Trend Watching I Message of the markets I 50 stock market rules I Technical analysis plain & simple I Losing my virginity I Trading for a living I Rich dad's prophecy I When genius failed I New thinking in technical analysis I Rich dad poor dad I Asia's investment prophets

Muqtada (Al Sadr) – by Patrick Cockburn
Published by Scribner (Simon & Schuster Inc)
Format – Hardcover
Price – 24 USD
Pages – 226
Rating 3.5 / 5

Before you read further – as a book reviewer, this piece is all about the outlook on Iraq, oil and politics. I do not have any anti shia / sunni / arab biases and / or political beliefs.

What is a book review on the subject of Arab / Shia / Sunni strife doing on the pages of a financial forum ? Does it have anything to do with your investments at all ?

Yes ! Muqtada Al Sadr will be a key player in the post US Iraq and will determine what he will prefer to do with Iraqi oil – Iraq has one of the top 5 reserves of fossil fuel in the world. To that extent, he has the power to influence what you will have to pay for at the pumps and how much inflation will eat into your real effective rates of return.

Patrick Cockburn has been a frequent visitor to Iraq and has covered the events first hand since the time Tikrit’s most famous citizen (Saddam Hussein) ruled over the country with an iron hand. He starts the narrative with a brief description of the commencement of a power struggle between the Shias and Sunnis in the 1920’s and how the minority Sunnis have ruled over a Shia dominated Country. After acquainting the reader briefly on the background of the split in the believers of Islam into the Shia and Sunni sects, Patrick then cuts back to the present day and compares the historical Shia martyrs with the modern day martyrs (Sadr I & II). Muqtada Al Sadr is the son-in-law of the first modern martyr Sadr I and the son of the second Sadr II.

The book describes in brief but with adequate detail the early struggle by the Shias during the 1991 Gulf war to overthrow the Hussein dictatorship, with bloody consequences. The hardships and miseries suffered by the average Iraqi due to the US sanctions, the shortage of basic amenities and murders by Saddams republican guard of any person perceived as a threat to the dictator. The Iran – Iraq war is covered in some detail and the seeds of the discontent that was to tear the Country apart after the US forces occupied Iraq in 2003 are clearly pointed out. The book actually goes into graphic details of how the power struggle within Iraq is now deeply rooted with sectarian violence and the discontent of the Shias is breaking tradition with the long standing non-violent philosophy to return to weapons and killings. The author has chillingly described the attempted assassination of Muqtada’s rival for power Sayyed Majid Al Khoei’s at the holy shrine of Najaf and his final killing near Muqtada’s door steps a few hours later. The deed was done by what was to later become the “Mehdi Army” – Muqtada’s own private militia. Similar fate awaited the SCIRI chief and many small time Sunni opponents who were brazen enough to oppose the Mehdi Army. Being a descendant of the Al Sadr family, Muqtada wields tremendous power – both military and political - within the un-employed and frustrated Shia youth which are his reservoir of strength. Being a cleric and preaching sermons in major mosques gives a ready platform for Muqtada to spread this cult.

With the impeding withdrawal of the US forces a few years away, Muqtada will be a major force to contend with and cannot be ignored by any serious oil trader. Opponents of Muqtada who took him likely have often paid heavily for their blunder, often with their lives.

All in all, a must read for oil traders.

Super Stocks

Author - Kenneth L Fisher Format - Paperback
Publisher - Tata Mc Graw Hill Price - Rs 395
Pages - 270 Level - Beginner to advanced
Rating – 5 out of 5

Few books appear on the shop shelves that leave a reader feeling richer in ideas, thought processes and having upgraded their skills, a deep sense of satisfaction. Ken Fisher's "Super Stocks" is one such masterpiece. Though Tata McGraw Hill has taken time to present the low priced Indian edition to the domestic reader, the value of of the ideas presented herein is both timeless and priceless.

Ken Fisher teaches you how to assign a buy price on a stock, independently, intelligently and accurately. He discloses his parameters and methodology in deploying various techniques put forth in the book and enables a lay investor to beat the so called pros in the game. Split into four parts and 15 chapters, the book is sound in ideas and the presentation is lucid, simple and jargon free. Nothing less than perfection could be expected from a seasoned Forbes columnist of Fisher's caliber.

His technique of stock valuation using market capitalisation to sales ratios revolutionised equity analysis in the 1980's. The concept still remains valid as it was back then. Ken has presented some basic but extremely powerful formulae to value stocks based on a Company's market share in absolute and relative terms and enabled investors to estimate future EPS figures based on this hypothesis. His concept of focusing on RAGS (research, admin, selling and general expenses) as a component of total sales and deriving an opinion on the management quality is priceless insight indeed. Borrowing on the philosophy of Philip Fisher of the "scuttlebutt" theory, this aspect is scarcely touched upon by other authors, or with such simple but powerful impressions.

I found Ken's pre-buy evaluation sheet formula quite useful as it helped me project future earnings, P/E multiple and estimated selling price of a share, a few years down the line. Ken has explained why very high p/e stocks can be cheap and should be still bought, inspite of wall street aversion and when they should be sold. Fisher has employed the "Glitch" system very very profitably, of buying stocks of Companies that are undergoing temporary but solvable problems, when everyone else is selling these shares. For equity research analysts, the list of FAQ's to refer to during management meets and analyst presentations is superb and fully loaded.

All in all, a "must read" book for all players in the markets. The low price of the Indian edition is a bonus by itself.

The Snowball - Warren Buffett And The Business of Life

Author - Alice Schroeder Format - Paperback
Publisher - Bloomsbury Price - Rs 995
Pages - 976 Level - Universal
Rating – 5 out of 5

This book is a must read for anyone who invests money in the markets. The author has taken great pains to cover the life of the Oracle of Omaha in such minute detail, that the biography overshadows all other accounts written about the legendary investor. The book covers the life of Warren's family before he was born and tracks the toddler Warren with great detail. Pictures, testimonies and anecdotes galore, the book gives great insight into what made the made the man "tick".

Spanning 6 parts and divided into 62 chapters, the book peels off the covers from Warren Buffett the enigma and enables a reader to gauge the thought processes of the prospective world beater. Interesting incidences that provide early leads to the business acumen of Buffett are a must read. The business ventures of fishing out gold balls from a pond, buying farms and the first commercial venture of delivering newspapers are insightful. The book also provides a honest insight into Warren's teenage crushes and his failure to attract the members of the opposite sex. The friction with his mother and affection for his siblings is touching. Alice has peeped into Warren's personal life like no other biographer and puts forth the painful aspect of a strange marriage between Warren and Susie Buffett, the arrangement with Astrid Menks and the ultimate re-marriage.

On a business front, you will read the legends habits of cutting corners as he puts his kids to sleep in a clothes drawers instead of a crib, wearing ordinary clothes and "keeping costs low". The reader gets to know legends like Benjamin Graham, David Dodd, Bill Ruane, Walter Schloss, Philip Fisher and the unique personality of Charlie Munger. The hurly burly of turning around the Saloman Bros after the bond scandal and near indictment of the company. Injecting vast sums of money into failing corporations and turning them around, making billions in return was routine for Buffett. The buyout of the Nebraska Furniture Mart, GEICO, Berkshire Hathaway and the Buffalo Newspaper provide a racy style of narration. Warren Buffett's investments in the news media, especially the high profile The Washington Post and a clutch of TV stations, his friendship with Kay Graham, Bill Gates and Don Keough (Coca Cola) are interesting aspects of the story.

You cannot but feel overwhelmed by the legend and the human being. A must read for every investor.

Investing Against the Tide

Author - Anthony Bolton Format - Paperback
Publisher - FT Prentice Hall / Pearson Price - Rs 325
Pages - 220 Level - Beginner to intermediate
Rating – 4.5 out of 5

Few in India will know Anthony Bolton as well as they know Peter Lynch (One up on Wall Street & Beating the Street) of Fidelity fame. Anthony Bolton was the British counterpart on Peter Lynch in Fidelity and the most profitable fund manager in the UK and one of the most in all of Europe. This low priced Indian edition is a must read for investors, traders and fund managers alike. Anthony shares his secrets on how to analyse companies, meet managements, read and decipher the numbers efficiently before committing funds. He has written the book candidly, the writing style is sober and to the point. The detail of his career is unpretentious and frank. Mistakes and multi baggers are laid out in equal candour.

The book is written in 3 parts and contains 21 chapters. The author has taken great pains to educate the reader about the qualities required by the investor to succeed in the business of investments. Subjects covered range from accounting and management qualities to technical analysis and psychological make up of the investors. Anthony Bolton, unlike Peter Lynch, is a die hard fan of Technical Analysis and confesses to using it extensively in his career.

Useful insights are provided on making key decisions on valuations, business models to deploy and how risks are taken in the fund management business. He has touched upon the contentious issue of symmetric versus asymmetric risks briefly and stated his preference for the same. The last 20 pages of the book are interesting read as Anthony provides his take on the changing landscape of investments in the Private Equity (PE) scenario and the risks involved.

All in all, the book is recommended read for all types of investors and money managers.

Value Investing with the Masters

Author - Kirk Kazanjian Format - Paperback
Publisher - Viva Publishing Price - Rs 395
Pages - 322 Level - Beginner to intermediate
Rating – 5 out of 5

Should you stick to P/E ratios, or should you value a company by market cap to sales? Is this system flawed for valuing certain types of companies? How do "master" investors take such decisions? These and many more such questions are answered in the book. Once in a while, you get a meaningful book that impacts your grey cells profoundly - this book by Kirk Kazanjian is one such tome. While there are many books that promise "inside information" on the workings of the best brains in the investment world, most turn out to mediocre endeavours that manage to scratch the surface alone. This book is surely likely to be different. The author has interviewed 20 top fund managers who have survived and thrived in the hurly burly of financial markets and are willing to talk about how, why and when they picked up specific stocks, mutual funds or commodities. If learning the nitty gritty of stock picking is what you are after, this book should be in your personal library.

Each fund manager has been allocated no more than 10 - 15 pages each and after a brief introduction, the author has got down to the crux of the matter. In a question and answer format, the book picks on the fund managers brains, answers questions that may crop up in the readers minds and manages to upgrade the skills of the reader - all in one go. All aspects of the game are covered in detail, the research, the follow up and even the timing of the sale, so as to offer a holistic approach. All the fund managers are value investors, who believe in buying a dollars worth for about half the price. Most have laid out specific parameters for arriving at such decisions and the reader has the benefit of learning about multiple schools of thought from the accredited masters of the game.

Pay specific attention to the views of value hunters like James Gipson, James Gilligan and William Miller as also part II of the book which is crux of the book itself. I wish I had come across this low priced Indian edition much earlier in my career.

Investing the Templeton Way

Author - Templeton Lauren; Phillips Scott Format - Paperback
Publisher - Tata Mc Graw Hill Price - Rs 395
Pages - 276 Level - Beginner to intermediate
Rating – 5 out of 5

What if someone was to tell you that the current meltdown in the markets was actually a major lifetime opportunity to get rich, though not quickly? What if the said advocate of this philosophy also provided you with tips and tricks to implement this system to your maximum possible advantage? Would you believe it?

Since the advocate of this theory is Sir John Templeton, you had better believe it. In the book "Investing the Templeton way", the authors have detailed this system that made Sir John Templeton "all those millions" in markets as diverse as Japan, Korea, Taiwan and China. The book is very well written and free of complicated jargon that would otherwise intimidate an average investor. His philosophy is that of a hardcore value investor, buying at a point of maximum pessimism to exploit bargain opportunities available due to prevalent fear in the markets. Re-read pages 81 through 130 as many times as you can, it's worth it. This is close to the theory advocated by Warren Buffet which advocates "a margin of safety" in buying when absolute fear rules the market sentiments. Not only does the book suggest buying in beaten down markets, but also lays down the rules for do's and dont's. The authors have explained in simple English, various ratios that are time tested and used by countless value investors globally. The concepts of evaluating economies, currencies and equity shares are so well explained that I suggest every investor "must read" this priceless classic. Tata McGraw Hill publication has priced it affordably at Rs 395. Read the book before you invest your first Rupee in the markets !

Reminiscences of a stock operator

Author - Edwin Lefevre Format - Paperback
Publisher - Sterling Book House Price - Rs 200
Pages - 308 Level - Beginner to advanced
Rating – 3 out of 5

This book is an eye opener for every class / category of market player. Written thinly disguised about a non-existent trader by the name of Livingstone, the book is actually all about the legendary Jesse Livermore. Starting out as a quotation board boy, Jesse Livermore progressed, at the age of 14, to become a legendary wall street "plunger". If for nothing else, read how a man can rise from the ashes, stages a comeback after going bankrupt many a times and shares his insights about how the "bucket shops" and "washrooms" operated in those days to swindle a retail investor of his / her money.

Additional benefits are a complete makeover of your trading pattern that will result after reading this racy classic. Though the book may have limited appeal to a modern trader as the tools have changed significantly, the markets and the market players have not ! Jesse Livermore elaborates upon the murky deals of some of the most (in)famous stock "cornering" operations and the booms and busts involving Washington lawmakers, unscrupulous promoters and crooked wall street brokers. If the review so far makes you feel stock trading is a "no win" situation, wait, there's more ! Jesse provides wonderful insights into what to do as also what not to do to come up a winner in the stock markets. In somewhat of a self justifying style Jesse also provides a limited peek into his lifestyle - many automobiles, yatchs and mansions in upmarket neighbourhoods and offers explanations for some things that the media did / did not credit him for.

Coming from a man who went "belly up" ( bankrupt ) and lost his capital a few times and rose again, this book is every stock investor / traders "must have" manual. What can you lose at what the book is priced ?

Technical Analysis and stock market profits

Author - Richard W Schabacker      Format - Paperback
Publisher - Harriman House            Price - £ 39.99 ( £ 33.99 direct from publishers )
Pages - XX + 452                            Level - Beginner to advanced
Rating – 5 out of 5

Old they say is gold ! This saying could not have been any more true than in the case of Richard Schabacker's masterpiece of a book. The jacket claims that the book is the real bible of technical analysis. I feel the book more than lives up to that promise. Richard Schabacker is known as the father of technical analysis and shot to fame for his accurate predictions of the markets in the 1920's & 1930's. This book is written way ahead of Edward and Magee's best selling Technical analysis of stock trends ! The ideas laid down in the book are as valid as they were when the book was first written in 1932. Harriman-House ( www.harriman-house.com ) is a specialist publisher catering to investors / traders with a collection of excellent titles to help players upgrade their skills in the extremely competitive financial markets.

The book begins by making a case for technical analysis and comparing the school of thought versus fundamental analysis. Basic ideas of constructing charts and sourcing critical data is also provided. The second chapter gets down to the brass tacks and sets the pace for educating the serious student of technical analysis. What is really hard hitting about this book is the predictive / forecasting power that the studies impart to the reader of this bible of technical analysis. Many books have staked the claim to be the final authority on the complex subject of forecasting price trends ( using the Dow theory), but this book stands tall in the crowd of wannabes. Every aspect of the market movement, consolidation, reversals, price extensions, price move measurement and trend-lines are covered in lucid detail. Every formation is backed by a chart or charts. The pros and cons of every formation is also stated to warn the reader of excessive dependence on the same as a hold grail. The author has left no stone unturned in compiling the exhaustive studies which I feel are guaranteed to help every serious trader / investor in the markets today. The feeling that I got while reading this excellent work was that of participation as the author has not only provided hand holding while phrasing his words but also tickles the readers grey cells to think along during every chapter. The latter part of the book also covers various types of markets - commodities, bonds and intraday & swing charts, making a complete wrap up of a gripping book. This book will help all types of traders - short term, intraday, swing and long term players alike.

This book is recommended as a "must read" for the rookie and the advanced players, for every chapter promises to throw new light even for a veteran trader.

Stock Market Rules – by Michael D. Sheimo

Publisher – Tata McGraw Hill – (Third) Edition, year 2006.
Format – Paperback / 227 pages
Level – beginner / intermediate
Price – Rs 275
Rating – 4 out of 5.


One has grown to expect good things from the Tatas and this book is no exception. The narration of the book on the cover says “ 50 of the most widely held investment Axioms explained, examined and exposed”. Michael D Sheimo has done a great job of examining and exposing some of the clichéd axioms, which need to be discarded if one has to progress as a trader / investor.

The most striking thing I found about this book was the fact that unlike other books on investments which tackle “golden rules ” etc, this book is not about a confirmationist or a “yes man” writing about market folklore. Here is a book that debunks what is trash worthy and gives you good ideas on forming profit enabling habits to improve your experience in the markets. The book is divided into 7 parts and each part deals with different aspects of market activity like research, strategy, good ideas, trading, caution and unexpected surprises. These 7 segments are further split into a total of 50 chapters which are brief yet hard hitting in their message! To that extent, this book takes off where other such books exhaust themselves. This book is not a mere collection of wall street sayings but a deeper analysis of the “when, where, why and how” of things. The reader gets a sense of exercising his / her grey cells as the book progresses and a sense of participation develops.

Michael reveals subtly yet professionally what every investor, trader, market watcher and analyst needs to know. Some of the axioms are so popular yet misunderstood that this book will help clear the air. Many misconceptions like scrip price movements after stock split, share buy backs, insider trading / bonus announcements, common methods of hoodwinking the retail investors and majority of weaknesses in the trading blue print of traders are touched upon. In the order of importance, part 3, 6 and 7 were the hardest hitting and should be read many times over to let the message sink in. These sections will successfully answer most of your doubts and impart a cutting edge to your trading / investing regimen.

The book lives up to it’s promise of providing valuable information to boost your profits in rapidly evolving markets. For the price, it is a bargain and a “must have” in your arsenal before you invest another Rupee in the markets. For traders / investors who perennially wonder why profits still elude them, this may well be a simpler answer! I wish I had the comfort of sound advice Michael has provided in this book, two decades ago when I started trading, it would have saved me years of frustration!


Technical Analysis for the Rest of Us
By – Clifford Pistolese
Publisher – Tata Mc Graw Hill. Pages – xiv + 198
Format – Paperback Price – Rs 265
Publish date – 2006. Level - Beginner

If you are playing the markets – equities, commodities, currencies or bonds, some working knowledge of technical analysis would surely help. Where most books on technical analysis tend to be intimidating and even confusing for the novice, this book is a refreshing change ! Written by an expert, for the rookie, this book assumes the reader to be alien to the science and art of technical analysis. The language and the concepts tackled have been thoughtfully kept very very simple. The result is a faster and better understanding of the subject, retention of the readers’ interest throughout the book.

The book has been divided into 9 chapters and the author takes the reader through the paces of technical analysis in a very measured and easy pace. Some of the most basic structures of a stock price chart, the comprehension of the various factors impacting the future trends and how to interpret the same are touched upon. Every example has been backed up by a graph to substantiate the authors view point. The end of the chapter includes a Q & A session which refreshes the readers memory and also tests his / her understanding of the chapter just concluded. The author also upgrades the skills of the readers on how to read and forecast various types of price charts, close ended funds, real estate investment trusts and bonds.

If you are a novice to this subject and wish to embark upon your journey into the brave new world of technical analysis, this book could be your first important step ! The excellent quality of printing and more than 50 chartical examples are additional plus points. Nothing less than the best could have been expected from the house of Tatas

Title - Trend Watching - Author - Ron Insana - Publisher - Harper Collins. Price - US $ 24.95 Volume - Hardcover / 254 pages

This book is a kind of sequel to the previous book I wrote about ( Message of the markets ) and sure enough, is loaded with insights typical of Ron Insana's style. The purpose of this book is to caution investors and traders about the repetitive nature of manias and bubbles that occur in the global financial markets. Ron has dedicated the first half of the book to the historical perspective of the markets and identified a pattern of the bubble formation. He starts from the tulip mania, south seas mania, turnpike mania, railroads, plank roads, canals, radio, and winds up with the recent dotcom bubbles that burst with an alarming similarity in their patterns.

Ron repeatedly cautions the reader about not getting into the trap of the typical mindset during a boom - " this time it's different ". He goes on to demolish this myth with his counter point - " it's never different " !! His hypothesis is loaded with ample evidence - fundamental and technical, and should help you form your own opinions.

The most interesting aspect of this book is the subtle check list that Ron helps you formulate that will help you to identify the emergence of a mania that ultimately builds in to a bubble. Is the current bull run for real, if not, is it at the mania stage or has it reached the bubble stage already ? If it's a bubble, is it ready to implode ? Read on and find your own answers......

The fringe positives about this book are the excellent quality printing, loads of charts and graphics to support the points made by Ron. The usual expectations of superlative binding and paper quality ( acid free ) are amply met. This book merits your attention.

Title - Message of the Markets - Author - Ron Insana - Publisher - Harper Collins. Price - US $ 25 Volume - Hardcover / 208 pages

Any one who has watched CNBC would know Ron Insana and his simplistic yet brilliant analysis of the US markets. As a popular anchor and market watcher Ron believes ( and I agree ) that the markets are constantly discounting the future and sending out signals of what that future might be ! It is upto us to decipher and understand and then act upon these signals. As a market analyst who is not unduly concerned with the small moves, but is looking for catching the large moves in advance, I am always looking out for tools to " predict " the future market actions. This book is a good tool to upgrade your skills to learn to forecast future market activity.

Ron has cited various examples substantiated with hard facts of how the markets warned savvy market watchers of impeding events like the great depression of the 1930's, assassination of John F Kennedy, the arab oil embargo of the 1970's, the chernobyl nuclear disaster, US attack on Col Gaddaffi, black Monday 1987 and the gulf war of 1991 !! Completely loaded with eye opening insights of how one can use interest rate derivatives to judge whether the fed will hike interest rates, whether excessive real estate activity causes equities to crack and even predict who will win the presidential elections in the USA !! Ron has provided pointers to free resources available on the world wide web that will help you predict the markets and get ahead in the game.

The strong points of the book are the simplicity of style of writing and the easy going pace of the narrative. Make no mistakes, though this book does not give you the excitement of a detective thriller, it can make you significantly richer !!

The excellent quality of paper used ( acid free ) and the superb binding and presentation of the book are additional plus points. A " must have " item in your personal library.

Title - Stock Market Rules ( 50 golden strategies ) - Author - William F Eng - Publisher - Vision Books. Price - Rs 190 Volume - Paperback / 248 pages

This book is a must read for beginners and intermediate level traders & investors alike. Full of insights and wall street wisdom gained over a century, William Eng ( more reviews of his advanced books soon ) has done a superb job of explaining in plainspeak, how a trader / investor can formulate good habits of market behaviour. Veteran traders may find the book too elementary, though it would still serve as a necessary refresher course in market behaviour. William Eng is an acknowledged analyst and speaks from a hands on practical traders view point, rather than an academic school teacher fashion.

The low cost edition by Vision books is a must read atleast once. Check the binding quality of your copy though. The publishers are trying to upgrade their binding quality which is rather substandard at times.

Title - Technical Analysis Plain and Simple - Author - Michael N Kahn - Publisher - FT Prentice Hall / Pearson Education India. Price - Rs 295 ( wow !! ) Volume - Paperback / 230 pages

I am a little confused about the opening lines to write while reviewing this book ! The title is apt and misleading at the same time. Michael has lived upto his promise of keeping the book simple so as to cater to the layman and at the same time put forth dynamite ideas that veteran writers / technical analysts knowingly / unknowingly choose to omit. Michael takes you step by step and draws you into the exciting world of technical analysis, offers you hand holding and anticipating what questions and queries that may crop up in your mind after reading each chapter. If there is one summation that I was to wrap up for this book, I would say - it will improve your trading / investment experience exponentially after you read and implement what is in this book !!

Michael touches upon basic doubts like - choosing a bar or line graph, should you choose mathematical scale or log scale charts. While trading futures, should you take near month charts or continuous futures charts. He urges you to look into the jungle rather than the isolated few trees. Look at the larger picture rather than the half an hour view - a short coming that I notice in most budding technical analysts. This book will not make you a world class intraday trader - Michael admits as much, but it will teach you what technical analysis is all about and in simple, jargon free and in a coffee table conversation style that even an average full time housewife will understand.

Some nuggets I noticed in Michael's book - cup and handle formations, triangles, supports, resistance and congestion points above which securities will zoom or otherwise. A common sense, no nonsense and down to earth style of narrating / teaching is the strongest point of this book. The excellent paper quality, binding and cover design are additional positives. The very surprising price aspect ( Rs 295 ) is the crowning glory !! You don't get a decent meal for that kind of money nowadays, forget about enriching your mind for life !

A must buy for every market enthusiast before the publishers realise their mistake and jack up their prices.

Title - Losing my virginity - Richard Branson ( the autobiography ). Author - Richard Branson. Publisher - Virgin Books. Cost - 9.99 £ ( UK ). Volume - Paperback / 552 pages

This book is not about sex !! When I brought the book home and put it on my desk, my dad ( as is his habit ) rummaged through my things, gave me a horrified look which said - when did you shift from management books to pornography ? I had to explain to him that the title was Richard Branson's way of influencing people with a shock effect, and was in fact was his autobiography. His corporations are named "Virgin" and so the somewhat shocking title. Dad's finer sensibilities and nerves calmed, I settled down with a pile of food and black tea to read this amazing man's version of his own life.

A few chapters later, I was hooked ! This man has a calculated method to his madness ! Dyslexia, torn ligaments in knees and a resultant poor academic record coupled with a non-performance in sports seemed to have not impacted this gentleman's spirits. He chronicles his journey from his job as a teenage editor of a college magazine, a side business of selling music records via mail order - sowing the seeds of the virgin group that was to become synonymous with the man.

The book highlights the spirit of adventure, the " can do " and " never say die " attitude that propelled the young Branson to look defeat in the eye and fight back. Ever imagined walking barefooted, shoulder length hippy styled haircut and soda water bottle thick glasses into a bank to apply for a business loan ? Branson's done it and got away - with a loan ! The guy is honest ( confession about jumping excise duties on export quota records which he sold in UK ) and the custom raids and near arrest, his various girl friends ( not a derogatory word in sight about his women ) and the hard drinking, hard working, party animal and dare devil account of his life is chronicled in order of importance in chronological order. The amazing period of association with top ranking musicians / bands and building an empire spanning a music company, publishing house, airline, railroads, gymnasiums, venture capitalist funds / insurance / mutual funds, soft drinks, merchandising and movie production - all when cash reserves were down and the outlook seemed bleak is engagingly written.

The one thing that I learnt from reading this book was - how dare I give up ? Just because the circumstances are adverse ? If a business tycoon can risk life and limb to have fun, promote his corporations and business all in one go, by way of transatlantic / around the world voyages in speedboats and hot air balloons, can or more importantly, should a CEO actually give up ? This book is all about the old world saying - " the best way to deal with problems is to go through them ", Branson has done it all. The epic saga of his court room battle with British Airways was so engrossing, I sat through the night to absorb his thoughts.

All in all, this book will inspire you with the courage to become a braver human being, unshackle your mind and spirit and goad you on when the chips are down - no matter how high the stakes ! Branson has promised towards the end of the book that a sequel is in the pipeline, I intend to book my copy ! This book is all about the grit of the human spirit, and I wish I had read it before Branson arrived in New Delhi - jiving to the beats of bhangra music as is his customary style of gaining acceptance in any part of the world he touches down to make friends with. I would have loved to meet and thank him for the inspiring book

Title - Trading for a living. Author - Dr. Alexander Elder. Publisher - John Wiley & sons. Cost - US $ 74.95. Volume - Hardcover / 288 pages.

There are 3 aspects to trading that you need to master before committing money to the game - psychology, techniques and money management. Dr Alexander Elder has mastered all 3 - a practising psychiatrist and trader, he carefully provides hand holding in all aspects in this wonderful book. The first part of the book will change the way you perceive trading. Dr Elder coldly compares trading to the old world gladiators and warns us that a trader who loses money puts his family through suffering, much like a losing gladiator whose property and family were given to the winner as prize money !! His sobering approach to tamper our ambitions so we take rational decisions rather than emotional ones is fantastic. His techniques are as old as the hills but the lucid way in which he explains the patterns is incomparable. Every important oscillator, pattern and chart reading tactic that is required to make you a winning trader has been visited. This section patiently puts you through the paces of mastering technicals as well as any good instructor would.

This section was so compelling that I went through it over three times ! Money management and fiscal discipline ties up the entire package that is sure to make you a better trader and put you on the fast track route to trading profits.

I feel this book is a " must have " in every stock / commodities traders arsenal. Though the book was first written in 1993, the ideas remain as valid as ever. Never mind the price of the book, buy it !

Title - Rich Dad's prophecy. Author - Robert Kiyosaki. Publisher - Warner Business Books. Cost - US $ 16. Volume - Paperback / 286 pages.

The role of FII's in the Indian equity markets cannot be emphasised enough. Yet, how much do we really understand their markets ? Only a clear understanding of what compels FII's to the India story, their attractions, compulsions, weaknesses and strengths in our markets will help us forecast their investment patterns.

Robert Kiyosaki has explained in a no nonsense manner how the US is on the brink of a financial storm. The baby boomers are aging and are likely to pose a substantial burden on the social security systems. He also explains how the greed of the industrialists changed the pension systems in the US and subsequently pose a threat to the US equity markets. It is this compulsion that the US fund managers are now looking eastwards to earn above US returns for their investors. Though Robert informs us that armageddon is nearly half a decade away, it prepares us for the futures and holds a lesson for us and informs us of the pension systems in our country.

Though Kiyosaki's style of writing may appear "too simple", there is no diluting the validity of the underlying message. This book is best read as a narrative rather than a panacea for a quickk fix profit making recipe from the stock markets.

Title - When genius failed. Author - Roger Lowenstein. Publisher - Random House. Cost - US $ 14.95. Volume - Paperback / 255 pages.

When you have 12 wall street whiz kids and 2 nobel prize winners for economics and finance running a hedge fund, what should you expect ? Disaster, bankruptcy and a grave risk to the wall street banking fraternity !! A catastrophe of such magnitude that the US Federal reserve had to intervene to stop a systemic breakdown.

Roger tracks the birth of Long Term Capital Management, the most high profile hedge fund in 1994 headed by the most high profile arbitrageurs in the US, as the fund out performed the markets by a huge margin for four years before collapsing in 6 short weeks. The book is all about how the collective genius of traders collected millions of pennies from tens of thousands of innocous trades that helped create a juggernaut that had exposure of over US $ 120 billion !! The fund roped in investments from the whos who of international banking fraternity - Union Bank of Switzerland, American Express, Goldman Sachs, Merrill Lynch and BankAm to name a few. The fund actually got arrogant and returned significant investor money before the collapse and the promoters invested their own funds ( borrowed from various banks ) in the fund, before achieving bankruptcy. The latter half of the book is compelling read as it tracks the fear, nervousness and freezing of logic in the face of disaster that every aggressive and highly leveraged trader experiences.

This book is a must read for the educational experience and the lesson of "what not to do" alone !

Book title - New thinking in technical analysis Author - Rick Bensignor Publisher - Bloomberg Professional library Pages - 287 Cost - Rs 375 ( paperback )

There is an old saying which goes thus - there is nothing constant in life except change ! This aspect of change is increasingly felt in our everyday life. Computers, software, household appliances and cars - all become redundant. Upgrades become necessary. The last significant matter on technical analysis was published in the 1980's - 1990's. While there has been scattered literature on new age theories, the gap between the old school and new age thinking was widening. Editor Bensignor has attempted to bridge this gap through this book. He has culled the best of 12 internationally acclaimed traders and put together updates of what is new in the field of technical analysis.

Unlike a software upgrade, this book will cater well to the novice and experienced trader, though some working knowledge of the subject would be required to get the best results. Stalwarts like John Murphy, Steve Nison, Tom DeMark and Kenneth Tower present their cases well and upgrade your skills on a vast array of technical aspects like swing trading, short term speculation, price forecasting, measuring market sentiments and long term projections. The style of writing is clear, concise and easy to comprehend. Print quality is good and points are driven home by an ample array of illustrations / graphics.

This book is surely likely to upgrade your skills as a trader and enrich your experience in the markets. My personal favourite was the section on point and figure charting by Kenneth G Tower, especially where he talks of making price projections easy to forecast ! It got me thinking - why didn't I think of this before !!! There are many more such points made in the book but Tower clearly held my attention, also due to the sparse matter available on point and figure charts. It was difficult to put the book down once I started reading, and I intend to read it time and again !

The best part about the book ? The price - at Rs 375, you got a steal !! Available online from publishers - www.vivagroupindia.com who have tied up with Bloomberg professional library to launch this low priced special edition. First published in 2004, this book is full of new age ideas

Book title - Rich dad poor dad - author : Robert T. Kiyosaki - publisher : Warner business books. Pages - 207. Cost - ( bookshop ) US $ 16.95 / ( traffic signal ) - Rs. 100 - paperback edition.

The most irritating problem that I encounter during my interaction with people is the amazing way people think about money. People are uncomfortable talking about it, mask their desire to get rich and are also afraid of getting rich !! A variety of reasons are put forward in the Indian context - becoming rich makes us sinful, we lose health and moral fibre or only crooked people get rich ! Unless we come out in the open with our desire to get rich, we will never think rationally towards getting there. On the other hand people who are well to do refuse to admit it ( I am a small player / I am managing to make both ends meet ) for the fear of attracting an " evil eye " that will take away their bounty !

If there is one attribute that this book will teach you, it is to learn to accept money as a means to en end and a necessity for all. It will also teach you some ways of making that money. If you are looking forward to coming out of a rut, this book is compelling reading !

Book title - Asia's Investment Prophets - author : Claire Barnes - publisher : Century business books. Pages - 244. Cost - 20 £ ( UK ) - hardcover edition July 29, 2005

Claire Barnes has experience of a diverse nature regarding Asian equity markets. She has worked for W.I. Carr and BZW among other assignments and has been exposed reasonably to diverse markets like Bangladesh, Hong Kong, Malaysia, Pakistan, Singapore and Vladivostok. Though this book is dated, the matter is still relevant. The ideas are timeless and will make you a better trader / investor. She has interviewed a host of fund managers who have invested in Asian markets and generated superlative returns. Reading this book will give you an understand as why FII's like telecom stocks like Bharti Tele, construction stocks and retail scrips like Pantaloon. Reading deeply may even give you insights as to what they are likely to invest in next.

While this book is likely to be anti-climatic and disappointing for people looking for " hot tips ", savvy investors will relish the experience. A light reading experience, this book helps you channelise your thought process in an orderly and business like manner. For people looking towards upgrading their skills, without the complicated jargon and technicalities, this book is a good pick !

Your feedback is important ! Please click here to let us know your views. Click here to inform a friend about this page on our website.

Return home This page best viewed with I.E. 4.0 or better. Top