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The Investing Path Learn the Do's and Don'ts of Investing. Take the Right Path. |
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Don't Use Technical Analysis for Stocks Technical analysis looks at trading patterns and offers no real insight to a company's value. It is used to day trade and not to invest. If you are tempted to use technical analysis, only do it on a stock that you would buy based on fundamentals. And then use it to find a good point to purchase. But mind you, the analysis probably won't work and you may miss a good buying opportunity. If anyone tries to sell you their proprietary trading system, this is technical analysis. If it worked, they wouldn't be selling it, or everyone would use it and the profits would disappear. |
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