The Technical Trader is written by me, Bill McNamara. I began my City career as a stockbroker with Rotherfield Securities in 1991 and, after the firm merged with Durlacher West (and changed its name to Durlacher), I joined the options team, under the leadership of Geoffrey Chamberlain, who had recently been running the London Traded Options Market. We later produced a newsletter for clients, ‘The Option Trader’, which suggested various strategies for private investors, such as buy-writes, call spreads, selling puts to acquire stock etc, based on analysis of the charts.
That was really when my interest in technical analysis began as it struck me that the charts could provide entry and exit points for trades that no other form of analysis could. And it worked! It wasn’t long before the most common question from clients was – What does the chart say?
In 1999, during the ‘Dot-Com’ boom, I started my own daily newsletter – The Traders Bulletin – so I could communicate with my clients on a daily basis and to keep them up to speed on what stocks I was looking at and what was happening in the market. (The Bulletin was, in those days, usually written on the train, somewhere between Stowmarket and Colchester, as I commuted to work each morning!).
In 2003 the private-client arm of Durlacher was bought by Charles Stanley and that’s where the Bulletin went as well. So, between 2003 and late 2017 I was Charles Stanley’s technical analyst and contributed regularly to their Investment Handbook, to Charles Stanley Direct, and I also had a long-standing seat on their Investment Strategy Committee. In October 2017 I launched the Technical Trader.
As far as the charts go, I am completely self-taught. Of course, that has been a process that has been ongoing for around 25 years, during the course of which I have witnessed pretty much every kind of market condition (including three major bull markets and two severe and destructive bear markets). And it’s a lot easier to recognize them when you’ve seen them before..!
Fortunately, there are many excellent books out there to help budding practitioners and I can happily recommend the books below. (The list is far from exhaustive but these are all sitting on the shelf in my study…).
Technical Analysis of the Financial Markets – John J. Murphy
Technical Analysis of Stock Trends – Edwards & Magee
Japanese Candlestick Charting Techniques – Steve Nison
The New Fibonacci Trader – Robert Fischer
Fibonacci Analysis – Constance Brown
Elliott Wave Principle – Frost & Prechter
Bollinger on Bollinger Bands – John Bollinger
Channel Analysis – Brian J. Millard
I am happy to discuss recommendations for additional reading – simply fill in the contact form and I’ll reply via email.