Moving Averages Simplified

Like so many who retired with an IRA, I too spent the last year seriously learning stock investing. When I first started, a friend loaned me his "Moving Averages Simplified". I started reading then thought, this is to shallow and put it aside. Now after 12 months and a min of 40 hours per week, reading, taking classes (note: Schwab has the BEST training videos), and learning technical analysis, I realized I made stock investing more complex and difficult then I needed to for a trend trader. For a trend trader the best indicator for the market is using the S & P500's 50 and 200 moving average. It's that simple! Buy when the 50 crosses over the 200, and Sell when the 50 drops below the 200. And that is what this book is all about. In a very simplified way, this book explains the moving averages which may be the most important market indicator. When I first tried reading the book, I didn't really have an open mind. I thought trading had to be complex. Recently when I reread this book, it all made sense. I have even reread it once again, to be sure I capture everything. Be sure to read the small side comments, they have very important learning tips! The book looks shallow, but it's not! I have since dropped my subscription to some of the $$ charting services and now use Yahoo Finance and MSN Money for all my charting needs. If looking for a book on moving averages, this is a VERY good training book. Good Luck trading. Note: check out the S & P 500 chart for Dec 10-28 2007. The 50 dropped below the 200. Shorting the S & P with ETF short SDS made a lot of money.

For me, the book reminded me of the importance of paying attention to moving averages and changing from the standard 50 dma to others both shorter and longer. Also, the descriptions of price dips below a moving average that just started upwards is worth viewing. Like the prior poster said, he is new to this.