“Technicians, unlike fundamental analysts, feel it is futile to study company financial statements, earnings and dividend reports, industry developments, and other data in an attempt to determine the ‘intrinsic value’ of a stock or other market instrument since it is commonplace to have a wide divergence between the intrinsic value and actual market price.” Price being a function of supply and demand, obeying the simple laws of economics, the technical analyst relies on a study of market prices.

The second principle is that prices move in trends, and trends persist. “The old Wall Street adage ‘the trend is your friend’ is true because, once begun, a trend is likely to continue. By following it you increase your probability of making money,” writes Meyers.

And the final key principle of technical analysis is that market action is repetitive.

A book that can set you on the chartist course.

A quick way to find the quality of an organisation is to ask the receptionist, ‘What is the mission of this organisation?’ Invariably, he or she will point to a plaque down the hall and say, ‘It is over there.’ What a waste of talent, frets Laurie Beth Jones in ‘The Four Elements of Success’ ( www.pearsoned.co.in ). “Because the mission and vision of the organisation needs to be front and foremost on the minds, hearts, and tongues of every member on the team.” When you have that, you have ‘star power’, she assures. “When you lack that, you are limping along, held back by the weakest link in the chain.” Most individuals use only 10 per cent of their brain, and most corporations are using only half of their talent base, bemoans the author. “By immersing people in the cause of the organisation, leaders can transform them into adaptable, nimble, and quick-thinking performers who carry through when it seems the obstacles are overwhelming.”

Insights that flow easily through the pages.

Accounting involves subjectivity, and the opinion of management has an important bearing on the numbers, cautions ‘Financial Management – A Practical Guide’ by V.S. Kaveri and M.V. Sonalker ( www.lawpublishersindia.com ). Examples of areas where differences can arise are the choice of depreciation method, allowance for bad and doubtful debts, and stock valuation. These apart, a frequent tussle between the taxman and enterprises is about the revenue-capital judgment. If an expenditure is treated as revenue in nature, profit will be reduced to that extent, explain the authors. “But if it is treated as capital expenditure,” the same is shown as an asset in the balance sheet, and only the depreciation gets reflected in the P&L Account.