The Heretics of Finance: Conversations with Leading Practitioners of Technical Analysis (Bloomberg Press) (Hardcover)

“Technical trading is ubiquitous in financial markets, which might explain some major financial-market anomalies and makes it an important topic for research. Like good scientists, Lo and Hasanhodzic explore this territory by gathering first-hand observations, with fascinating results.” —Carol Osler,
Program Director, Lemberg Masters in International Economics and Finance, Brandeis International Business School, Brandeis University

“. . . a fascinating view of the art and craft of technical analysis.  For finance professionals and academics alike, this book is an excellent introduction to what technical analysts do and why it may make sense in modern markets. An enjoyable and very enlightening book.” —Maureen O’Hara , Robert W. Purcell Professor of Finance, The Johnson School, Cornell University    

"In the last twenty years, academics have piled up evidence on the puzzling success of technical analysis, yet few researchers are very familiar with the thinking of technicians.  Lo’s and Hasanhodzic’s interviews with well-known technicians illuminate their thinking on the markets and their profession. THE HERETICS OF FINANCE  is a must-read for economists studying technical analysis, behavioral finance, or related market anomalies. I recommend it highly.” —Christopher J. Neely, PhD

"Technical trading is ubiquitous in financial markets, which might explain some major financial-market anomalies and makes it an important topic for research. Like good scientists, Lo and Hasanhodzic explore this territory by gathering first-hand observations, with fascinating results." (Caroil Osler, Program Director, Brandeis University )

". . . a fascinating view of the art and craft of technical analysis. For finance professionals and academics alike, this book is an excellent introduction to what technical analysts do and why it may make sense in modern markets. An enjoyable and very enlightening book." (Maureen O'Hara, Cornell University )

"In the last twenty years, academics have piled up evidence on the puzzling success of technical analysis, yet few researchers are very familiar with the thinking of technicians. Lo's and Hasanhodzic's interviews with well-known technicians illuminate their thinking on the markets and their profession. THE HERETICS OF FINANCE is a must-read for economists studying technical analysis, behavioral finance, or related market anomalies. I recommend it highly." (Christopher J. Neely, PhD )

Product Description

This book provides extraordinary insight into both the art of technical analysis and the character of the successful trader. Distinguished MIT professor Andrew W. Lo and researcher Jasmina Hasanhodzic interviewed thirteen highly successful, award-winning market professionals who credit their substantial achievements to technical analysis. Together, these lively and candid interviews tell the story of technical analysis in the words of the people who know it best. The first half of the book focuses on the technicians' careers: how and why they learned technical analysis, what market conditions increase their chances of making mistakes, what their average workday is like, to what extent trading controls their lives, whether they work on their own or with a team, and how their style of technical analysis is unique. The second half concentrates on technical analysis and addresses questions such as the following. Did the lack of validation by academics ever cause you to doubt technical analysis? Can technical analysis be applied to other disciplines? How do you prove the validity of the method? How has computer software influenced the craft? What is the role of luck in technical analysis? Are there laws that underlie market action? What traits characterize a highly successful trader? How do you test patterns before you start using them with real money?   Interviewees include: Ralph J. Acampora, Laszlo Birinyi Jr., Walter Deemer, Paul F. Desmond, Gail M. Dudack, Robert J. Farrell, Ian McAvity, John J. Murphy, Robert R. Prechter Jr., Linda  Bradford Raschke, Alan R. Shaw, Anthony W. Tabell, Stan Weinstein.