to a certain extent as the previous answer suggests its looking at the past to predict future trends so if past is a guide to the future then its possible but remember this
The price and value of investments and their income fluctuates: you may get back less than the amount you invested. Remember that how an investment performed in the past is not a guide to how it will perform in the future. If you are in any doubt about investing in these types of investments, you should consult a financial adviser.
January 1st, 2010 at 1:21 am
Since the question is vague I am going to assume you aren’t a financial analyst or a stock broker. If you know how to use the stock charts in conjunction with a number of other factors such as economic trends, market value per share, etc. Then yes they can be a useful tool to make money in the stock market.
References :
January 1st, 2010 at 1:39 am
Generally yes! But it is a very disciplined approach, and it is not the only tool investors have in trading the stock market.
According to Wikipedia, Technical Analysis is rooted in the believe that investors collectively repeat the behavior of investors that preceded them; and as such, past historical patterns can be used to predict about future price actions. This analysis, however, is NOT a guaranteed means of making money on the stock market. It only increases the probability of predicting future price movement.
One reason why many people fail to make money is because they let their emotions get the better of them, hence, technical analysis really must be a very disciplined approach.
If you are unsure of how to use technical analysis, you could use the many resources on the internet. Or better yet, some traders (e.g. at Stocktradinghero.com) do give free stock technical analysis for you on request. You could use such resources and build on your confidence first as a start.
References :
http://en.wikipedia.org/wiki/Technical_analysis
http://www.stocktradinghero.com/
January 1st, 2010 at 2:07 am
to a certain extent as the previous answer suggests its looking at the past to predict future trends so if past is a guide to the future then its possible but remember this
The price and value of investments and their income fluctuates: you may get back less than the amount you invested. Remember that how an investment performed in the past is not a guide to how it will perform in the future. If you are in any doubt about investing in these types of investments, you should consult a financial adviser.
References :
January 1st, 2010 at 2:42 am
Yes you can. Technical analysis (TA) looks to historical data and plot the trends. Then it looks at how this trend can behave in a new situation. One must be skilled in order to use TA to its full advantages. Also, TA has a lot of indicators. Some analysts had devised their own and claim that theirs work better than others. Some combined a few indicators and gave it some exotic name and try to sell it to people. So choose wisely.
References :
http://investmentbelief.blogspot.com/
http://www.investment.inforichweb.com/
January 1st, 2010 at 2:58 am
I am not sure about stock trading, I used to trade stocks but using fundamentals and I never had any real success using technical analysis but technical analysis works really well in the forex market.
I have since transferred to forex trading, and now use technical analysis as my mainstay of my system. I now trade forex full time.
References :
http://www.currency-exchange-reviews.com/free-forex-training.html