John Murphy - specialist in technical analysis of financial markets

John Murphy is a well-known analyst and capital manager. He is the author of several books on trading. More than 30 years specializes in a technical approach to investing. In this article, we will talk about the career of a financier and his method.

Sphere of activity of John Murphy

In the field of investment, any known name is associated with people with a certain strategy. For example, hedge firms are linked to George Soros. The name of Peter Lynch comes up at the mention of mutual funds. And when discussing technical analysis, the famous trader John Murphy is recalled. The author's books on this subject are very popular now.

At the moment 73-year-old Murphy heads two own firms: MurphyMorris Money Management Corp and MurphyMorris Inc. The former manages capital management, and the latter is a network resource based on technical analysis.

The most popular edition

There is one work that surpassed the fame and significance of all the books that John Murphy wrote. "Technical analysis of financial markets" is his full name. The popular book became in 1999. And the first edition dates back to 1986. At the moment, all technical analysts of the market actively use it in their practice. The book is translated into eight languages.

Starting a career

John began to work in the second half of the 60's. Then the sphere of technical analysis was the creation of graphs with the help of a pencil and paper. In the 70s, the young man received a bachelor's degree in economics and wanted to make a career connected with stock analysis. John began with a rather modest position, not promising him great prospects.

"Master of Business Administration" - the so-called specialty Murphy. To get it, John studied marketing, management, accounting, finance and business for two years.

In the future Murphy will say that he never thought of becoming a technical analyst. The young man was more interested in the sphere of securities. But at that time in the labor market there was an unstable situation, and this was a decisive factor. CIT Financial Corporation offered John to become an assistant to a portfolio manager. More precisely, we needed an assistant to work with the charts.

Receiving this post, John Murphy considered as an opportunity to make a career in a large firm. But then the young man was so carried away by technical analysis that he completely forgot his previous plans.

At that time, the hero of this article read all available publications on this topic. There were very few of them. Now, according to the trader, there are many times more specialized books.

Futures market

John Murphy got on him only by coincidence. Then there was a market collapse, and many of the securities remained on their hands. The hero of this article was just lucky to be at the right time in the right place. In the 1970s, the analyst worked for the most part at Merrill Lynch, specializing in commodity markets. In particular, Murphy headed the department of technical analysis.

Just at that time, people began to show interest in commodity markets, overgrown during the seventies into a real boom. Constantly developed new indicators that can be used even in modern conditions, by embedding in computer programs. The main direction of John's work was research and financial management. In the first half of the 80's he left the company "Merrill Lynch" and became an independent consultant. Murphy worked hard, wrote and taught in the field of capital management.

The appearance of the Internet

All the knowledge accumulated during the first years of work, John outlined in the work "Technical Analysis of Futures Markets", published in 1986. The popularity and popularity of the book was due to the beginning of the development of the era of computers. Subsequently, this was supplemented by a large-scale branching of the Internet. Murphy referred to the global network as an excellent means of disseminating information in terms of trends in technical analysis.

Soon, John personally appeared on the web. In 1996, he founded, together with Greg Morris, the resource MurphyMorris.com. On the site, the financier taught people the main postulates of technical analysis. In principle, he did the same on television, weekly in the financial news of CNBC and monthly in the program "Trading Week". Just a global network trader considered a more powerful source of information dissemination.

Final Tips

Basically John Murphy works on an interval of average length. But according to his assurances, the system of technical analysis can be applied to any time intervals. Only brokers trading in the short term should rely on market data on a more global scale.

According to Murphy, short-term trading is absolutely technical. Nevertheless, the manager must see the overall market picture, know the direction of the trend, as well as the lagging and leading sectors. In general, short-term trade will bring profit only if its methodology correlates with a long-term trend.