<h2 class = 'uawtitle'>Is Technical Analysis Better than Fundamental Analysis?</h2><br />
<div style='font-style:italic;' class='uawbyline'>by Will Thorton</div><br /><br />
<div class='uawarticle'>With the growing market of internet based brokers and the substantial volume of people trading from home, I am kind of disappointed at the continuing lack of knowledge surrounding technical analysis. Obviously there is a technical analysis circle on the web, yet it is nothing in comparison to the rest of the trading community. Relatively few people embark on their trading career with a technical analysis mindset. People normally start off by using fundamental analysis and learn about technical analysis either later on... or otherwise not at all.<br />
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Probably the most likely reason behind this is our subjection to mainstream newspaper and tv. Whenever you read the newspaper, the headlines are usually about quarterly earnings, mergers and acquisitions, or maybe if we are fortunate- the latest lawsuit.<br />
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I guess "CIO love triangle" will usually pull far better ratings when compared with "bearish engulfing pattern".<br />
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So this means that the fresh new trader is already prone towards a specific type of trading. They switch on the news, read a press release, and maybe read some hyped up blog comments. This is a unsafe way to start, but for the beginner trader, this is all too common. Furthermore, fresh traders will often move towards small cap stocks. The elevated risk is marginalized by the idea of possessing extra stock and having a better chance to strike it rich.<br />
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Sure, I realize that the real fundamental traders are going through a bit more than just reading a blog and hurling a dart at the wall. However, the everyday newbie trader just isn't. The new trader is trading on stockholder advice, news stories, and generally speaking a pile of speculation. The dilemma is painfully obvious- average Joe is the last guy in line to get to hear the headline! By the time it finds its way to the general public, it has already been passed to family and friends, associates, and generally speaking just about anybody that is anybody on wall street. I love examining a stock chart after bad news is released. What? The stock began to decline a few days beforehand? I can't imagine why.<br />
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And for those of you who think we are all on a level playing field:<br />
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The next time you happen to be on a beautiful sandy beach and decide to take a swim, make sure not to swim too far away as you might slip off the edge of the earth.<br />
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The chance for self-sufficiency is really what ought to make technical analysis so appealing to the new trader. You aren't at the mercy of yesterday's old news. Your most important techniques are your charts, and the charts will not fool you. Moving averages, candles, and patterns are accurate and you do not need to worry about an unforeseen nasty headline just around the corner. As soon as you become familiar with a TA program, it doesn't go away and it can be employed as you wish, each and every day.<br />
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Give technical analysis a try, even if it simply means doing a a handful of paper trades. Turning off the press releases and depending on your own expertise is a rather awesome experience. I'll always remember my very first technical trade. I discovered a breakout stock with a nice pullback coupled with a very small flag pattern. I chucked a bit of cash at it and established a snug stop-loss. And after three days, I had earned 40% and recognized my indicator to sell. I earned eight hundred bucks on a stock that I found with my own eyeballs, my personal strategy, and all from the enjoyment of my own home.<br />
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How is THAT for insider trading?<br />
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About the Author:<br />
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<div class='uawlinks'>To understand the difference between a failed new trader and a triumphant new trader, visit Will Thorton's totally free <a href="http://technitrades.newsvine.com/_news/2013/01/28/16729562-is-mass-media-destroying-technical-traders">Technical Analysis Tutorial</a>. Please don't play stocks unarmed. Be smart and understand <a href="http://www.squidoo.com/the-life-of-a-trader">Technical Analysis</a> right now.</div><br />
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