Trading Without Fear : Eliminating Emotional Decisions with Arms Trading Strategies (Wiley Finance)

Rating:
Summary: A good book of technical analysis & not trading psychology
Review: The book title is quite misleading. However, this had not reduced the value or quality of this technical analysis tool book.

The author, with simple words, fluently explains about several Volume related technical tools such as Arms Index, Box Ratio and Volume Adjusted Moving Averages VAMA. Market tactics, like how, when and what to sell short and to cover shorts when you are right and when you are wrong, are elaborated with sound writing skill and clear examples.

In short, worth a read.

Rating:
Summary: A Good Book, But Not A Great Book
Review: The market is not driven by logic, i.e. good earnings, good products, etc. but by emotions, such as greed and fear, particularly at the turning points. It is the emotional response to the news, rather than the news itself, which determines the effect. Emotions can be better displayed graphically by volume analysis, especially by using the volume indicators developed by Richard Arms. The market operates as a function of volume, not a function of time.

I personally have had excellent results with Arm's "Volume Adjusted Moving Averages",which gives a far superior early warning signal than other MA's. It was therefore disappointing to find that the book only hints at the techniques to be applied. ( an outstanding book in this regard, is Stan Weinsteins "Profiting in Bull And Bear Markets). Arm's techniques are revolutionary, make a lot of sense, and give a different perspective. The book is worth a read for that alone.