PROFITABILITY OF TECHNICAL ANALYSIS: A CHALLENGE OF MARKET EFFICIENCY

Fred Tam wrote “Profitability Of Technical Analysis: A challenge of Market Efficiency” in 2006. Fred Tam is an experienced trader, a knowledgeable technical analyst, a serious and scientific student of the stock market and an inspiring educator. These desirable characteristics of Fred Tam gathered together to help him write this significant contribution to the world’s literature on financial markets and to offer practical applications of technical trading tools for trading or investing in the Malaysian stock market.

This book makes three special contributions to the study of financial markets. First, it provides a rigorous recapitulation of the Efficient Market Hypotheses (EMH) theory, which sets the stage for a presentation of the anomalies and the detractors that have beset the EMH during recent years. Second, the book reports the finding of a comprehensively designed and carefully executed empirical study of the Malaysian stock market.

From a step-by-step filtering process, there emerges from this research several robust and reliable technical market analysis trading systems that offer the opportunity to traders and investors to earn above normal returns in the Malaysian stock market. The third unique contribution of this book to the field of investments is in the three case studies relating to special high-risk circumstances facing the Malaysian investor. The book offers insights into the unique character of each type of risk situation and it offers specially-crafted technical analysis approaches to cope with each such circumstance. This third contribution is like a sequel, an additional bonus, to the first two contributions of this book.