Law #11: KEEP LEARNING
Law #11: Technical analysis is a skill that improves with experience and study. Always be a student and keep learning. - John Murphy
This may be THE most important law of all. The instant you think you've learned everything there is to know about Technical Analysis, the instant something new comes along and proves you wrong. There is always another chart to study, another book to read, another market commentary to consider. With the advent of the Internet, studying Technical Analysis could not be easier. Unfortunately, with so many choices out there, it can be quite overwhelming. Here are some additional places to go to learn more about Technical Analysis:
StockCharts' ChartSchool - Duh! ;-) Just click on the "Chart School" tab at the top of any of our pages and start reading.
StockCharts' Online Bookstore - We are constantly reviewing Technical Analysis books for you and only adding the good ones to our store. We also keep prices as low as possible for our users and always have an exceptional book on sale each month.
Our Public List Area - This is an often overlooked gem. It can help you in two different ways. First off, by reading the analysis of others and then comparing it with your own analysis, you will quickly become a better investor. Even if you completely disagree with what the other person is saying, you will still improve because you will be clarifying in your mind why you disagree with them.
The second major benefit comes when you start writing your own commentary for others. This is the #1 way to improve your charting skills. Don't worry if you are new to charting. Don't worry if you don't think your analysis is "good enough". Try any way. There's really no harm in trying and I honestly believe that publishing a public chart list will motivate anyone to become a better technical analyst.
TAAZ - http://www.equis.com/Education/TAAZ/ - This is the on-line version of a book everyone should have - "Technical Analysis from A to Z". Got a question that isn't answered on StockCharts? If it is about an indicator, chances are TAAZ has the answer.
Stocks And Commodities Magazine - Subscribe to this magazine. Read each issue cover-to-cover at least twice. Never throw out old issues. And buy the archived versions in paper or CD-ROM form. Keep them near your computer at all times. There are articles from issues published back in the mid-1980's that are still completely relevant today. This is another overlooked gem in my opinion.
Online Message Boards - Don't fear these things, use them! There are great message board areas for the discussion of Technical Analysis in both Silicon Investor (here)and InvestorsHub (here). Browse them. Read the archives. Ask questions. Post answers. Get involved. You'll be a better investor for doing it.
(A word of caution however: Never blindly believe anything you see on a message board until you are familiar with the people who are posting there.)
This conclude my series on John Murphy's 10 Laws of Technical Trading. Hopefully, these eleven articles have helped you expand your charting capabilities and helped you see how John's techniques can be applied in many ways. John and I both hope that you will continue to build on these "Laws" and use them to develop your own personal analysis style. Good luck!
Note: John's entire 10 Laws of Technical Trading can be found in our "ChartSchool" area under "Trading Strategies". If you missed any of my previous articles on Murphy's Laws, the ChartWatchers Archives page will take you to any of them.
