"The key to investment success, if there be just one, is theability to remain emotionally detached. That detachment is onlyachieved through confidence. That confidence is only arrived atthrough knowledge. That knowledge is arrived at through thought,study, hard work, and experience. In this book, I will try toimpart the knowledge and experience I have acquired over the lastthirty years." — Richard Arms from the Introduction to TradingWithout Fear
Richard Arms' revolutionary theories have changed the way investorsperceive the market. His expertise in the field of technicalanalysis has had significant impact, evidenced by the fact that hisEquivolume charting system is now part of the most popular stockand futures software, and his Arms Index—also known as theShort-Term Trading Index or TRIN—has become one of the mostimportant technical tools of Wall Street.
In Trading Without Fear, Richard Arms shows investors how to makesound investment decisions "without succumbing to those two verypowerful emotions": fear and greed. Learning to control thoseemotions in ourselves—while recognizing them in others—empowersus to capitalize on that knowledge. The result is informedinvestment choices, tempered by caution, and fueled by confidenceand a strong desire to succeed.
Arms' cogent examination of leading strategies will enable theaverage investor to master successfully what is widely regarded asone of the most reliable methods of long-term market forecasting:volume analysis. Volume analysis is rooted in a seminal Armstheory—that volume plays as significant a role in understandingthe markets as price movement. And volume is affected by theemotions at work in the marketplace. "The market is very complex.It is pushed one way or the other in varying degrees as a result ofindividual decisions of millions of participants. Some of thosepartici-pants are acting logically and others are actingemotionally...it is the volume which is giving us the real pictureof the emotions in the marketplace. Price tells us what ishappening, but volume tells us how it is happening."
Trading Without Fear offers investors a trading discipline within-depth coverage of:
* Technical vs. fundamental analysis
* Equivolume charting and the importance of the "Power Box"
* Ease of Movement and Volume Adjusted Moving Averages with newinformation not available anywhere else
* Market tides—VAMA and cycles
* The mechanics of buying
* Selling short—how and when to do it
* Closing out short positions
With his succinct analytical skills and unique approach, RichardArms makes sophisticated investment strategies accessible toeveryday, individual investors.
Trading Without Fear
"Mr. Arms elegantly combines many different aspects of volumeanalysis in this book. Volume is related to stock market breadthvia the Arms Index, and to price via Equivolume charting. VolumeWeighted Moving Averages and the Ease of Movement Indicatorcomplete the picture. If you are interested in how to quantify thedriving force of the market, this book is for you." — JohnBollinger, CFA, CMT President, Bollinger Capital Management Editor,The Capital Growth Letter
"Analysts and traders will acquire confidence and control fearthrough carefully studying and applying the unique insightsavailable in Trading Without Fear. This book sums up much of theinventive genius of Richard Arms, the 1995 winner of the covetedMarket Technicians Award. The famed Arms Index and other uniqueindicators including Equivolume, Ease of Movement and VolumeCyclicacity are presented in clear terms and in a logicalprogression filled with penetrating insights into how to profit inthe market." — Henry O. Pruden, PhD Professor, Golden GateUniversity Executive Director, Institute for Technical MarketAnalysts