Power Tools for Traders

I wrote Technical Analysis to give beginning as well as experienced investors a collection of useful observations regarding the stock market. I also wanted to offer forecasting tools so readers could make their own informed decisions as to the likely direction of stock prices, rather than relying on stock brokers, mutual fund managers and the financial and general news media.

Research has indicated that the average mutual fund investor, for example, is generally late in responding to changing trends in the stock market -- selling most heavily as serious market declines are approaching their end and buying most heavily near significant market tops.

As a result, the typical investor fails to match the performance of investors who simply buy and hold individual stocks or mutual funds through both favorable and unfavorable market periods -- a strategy that has its own considerable risks and drawbacks. ...