Have you ever heard of technical analysis, but didn’t know what the meaning of the term was? Have you ever tried trading, but didn’t know when to buy or when to sell? If you’re not familiar with technical analysis, you probably didn’t fully exploit the market yet… Well, it’s about time you do something about it…
Stock trading with Technical analysis is one of the main strategies which enable the investor to find and take advantage of stock market opportunities. The strategy is a success thanks to its easy utilization, and its simplicity. Moreover, the benefits it provides are immediate and real. This strategy has been researched and improved for over 400 years and guides countless investors on a daily basis. Technical Analysis can be used for stock trading, bond trading, options trading, Forex trading (foreign currency market) etc. Its increasing popularity generates better and more accurate results.
That’s because graphs predictability drives more investor buy or sell, which in its turn fulfills the graph’s prediction. Some tend to use technical analysis combined with other strategies (such as fundamental analysis). Others prefer using technical analysis alone, relying on the assumption that market circumstances always reflect on stock trade values. The first thing we have to understand is that the market often operates irrationally. The good news is that the irrationality is consistent. Price movements in the market follow certain trends. These trends repeat themselves and can be identified on the stocks’ graphs.
Therefore, while stock trading with technical analysis, we must take into account the stock values in the past, and we can statistically anticipate stock’s behavior in the future. In that sense, it is certainly worthwhile to analyze past economic performance.
Go now to Lesson 1 – Basic concepts
Looking for some advanced technical analysis knowledge? Skip the first lessons and learn now about The Most Useful Indicators (great for stock trading, options trading and forex trading)