Technical analysis describes a process by which investors and financial analysts use historical data to determine how financial securities, such as stocks, might perform in the future. For example, if investors want to predict how well stocks of a certain company might perform throughout one fiscal quarter, they might see how similar stocks performed in the past in similar economic environments. To choose the best books on technical analysis, you first should determine how you are going to use these books. For instance, if you are taking courses in investment and stock analysis, you should consult a syllabus composed by your instructor. If you are insure, contact your instructor to learn what he or she recommends.
Many people who need books on technical analysis are interested in investing and would like to pick up some tips on successful investment. If this is the situation you are in, you should make sure that you choose a book that you understand. Much financial jargon and many investment concepts are quite complicated. Before you choose a book designed for experienced investors, you might want to enroll in a beginners' course or read an introduction to investing.
Another important factor to consider when choosing books on technical analysis is the author of a book. It should go without saying that authors of books on technical analysis should be knowledgeable about this field. They should either be seasoned investors or finance or economic scholars. If you are unsure about the qualifications of an author, you should look at the back of the book where an author's biography, along with professional qualifications and other books he or she has written, often is included.
Make sure, however, that books on technical analysis are written from a perspective that you might find useful. For instance, an aspiring financial scholar might be more interested in a study that compares technical analysis to fundamental analysis, which is another method for analyzing securities. An aspiring investor, on the other hand, might benefit more from books on technical analysis that are written from the perspectives of established investors who are able to give practical advice.
If you want to begin studying the behaviors of securities, you should purchase the proper software, since this is how most analysts and investors follow stocks and markets. You might find that the best books on technical analysis teach you about different programs and tools that are used in this field. The best books might even provide you with some instruction on how to get the most out of technical analysis software.
