Why Technical Analysis?
When it comes to buying and selling stocks the average non-trader probably thinks it is about fundamentals and the company’s numbers. I don’t know what I will do if I hear one more person say just invest in Microsoft. While there are advocates of these fundamental practices, the odds are that most of the people making money in the markets TODAY are traders who practice technical analysis.
Here’s why…
Stock charts are like pictures; they are worth a thousand words. They can tell you if a market is oversold, where a market heading, where the price is moving, how long it will take to get there, and much more. You can also learn what a stock is going to do in the next 15 minutes or in the next 20 years. While reading a stock’s fundamentals should not necessarily go missing, in times of high volatility, what can these numbers really tell you? Analyst thought Bear Sterns management was too good to let anything happen. I think we all know what happened. They failed! Technical analysis would have told you the stock was in a downtrend and to not invest in it.
Right now the numbers for all companies are bad, and, if they are not, well nobody cares or somebody is making them up. Trying to predict a stock’s price short-term and even long-term in this market is almost impossible to do. Why, because nobody is really sure what these numbers mean, and when they think they do they were wrong.
With technical analysis, you have the ability to minimize risk and predict what a stock will do regardless of the company’s numbers. Especially in the market, technical analysis allows you to make money in the short-term.
Forget long-term. Anybody can guess that. I could probably give you a list of 20 stocks off the top of my head and odds are that at least 15 of them will be higher than they are today.
If you are serious about making money in the stock market… no if you are serious about making money in the stock market NOW, then take the time to learn the patterns that are taught in this package, build on them, practice them, and soon enough you will be wondering why people use any other method.