The most serious of the econ books is
Beating the Business Cycle
by Lakshman Achuthan and Anirvan Banerji. Anticipating when the business cycle is about to turn is a trick most economists are exceedingly poor at; Achuthan and Banerji show you how to do it. If you find that the previous two econ books whet your appetite, then consider this your graduate-level reading.
You learn technical analysis not by reading about it, but by looking at thousands of charts over the course of many years. That makes recommending any books on TA challenging. I picked the following because they either illuminated a particular segment of TA or were extremely accessible to the nontechnician.
Getting Started in Technical Analysis
author Jack Schwager covers all the basics: moving averages, trend lines, patterns, support and resistance. Another good book to get started with TA is
The Visual Investor
by John J. Murphy. Either of these will give you a broad overview of technical analysis.
My favorite of the new TA books is
by Michael Covel. Straightforward, easy to read, this book is rich in details about why trend following is such a successful strategy amongst some of the world's best-performing hedge funds.
How to Make Money in Stocks
by William J. O'Neil. O'Neil, founder of
Investor's Business Daily
, created a quantitative and technical-based trading system called CANSLIM. Although I am not a follower of this methodology, it has much to offer to the novice. If you are an
reader or are curious about his philosophy, this book is a good place to start.
I've read several books that
Gary B. Smith has recommended, including
How Charts Can Help You in the Stock Market
by William L. Jiler, and
How I Made 2,000,000 in the Stock Market
by Nicolas Darvas. I would suggest both of them to readers who want more details and background to how several successful technicians have made their fortunes in the past.
I occasionally find myself looking at a chart and wondering what the heck it means. That's why I have a small reference library on my desk. It includes:
Technical Analysis from A to Z
by Steven B. Achelis;
Encyclopedia of Chart Patterns
by Thomas N. Bulkowski;
Japanese Candlestick Charting Techniques
by Steve Nison;
Technical Analysis of the Financial Markets
by John J. Murphy.