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.

The Do's / The Right Path The Don'ts / The Wrong Path
Invest Early Don't Try to Time the Market
Invest Often Don't Trade
Understand the Compounding Effect of Money Don't Procrastinate
Find More Ways to Save Money Don't Give Up
Diversify Your Investments Don't Use Margin
Start With Simple Investments and Expand Don't Chase Hot Stocks or Sectors
Have a Financial Plan Don't Speculate
Manage Investment Expenses and Fees Don't Make Large Bets
Invest to Reduce Taxes Don't Use a Financial Planner
Invest Overseas Don't Be Too Conservative
Stick With It Don't Watch Too Closely
Learn to Do Your Own Research Don't Keep a Loser
Be Objective Don't Use Technical Analysis
Invest Don't Trade Don't Dip Into Your Savings / Investments
Sell if Fundamentals Change