What is technical Analysis?-a brief overview

What is technical Analysis?-a brief overview

Technical analysis means analyzing what stock prices do and its behavior using technical data like charts, indicators etc.This will provide us psychological behavior of peoples in capital market. So technical analysis is all about predict future and future price probability using past price regularities and movements. This makes our trading practices better and gives u fruitful result to your account. For all doing this for only making profit by forecasting stock price over period of time in order to buy or sell those stocks. Emphasis in technical analysis is that to make profit from trading, not to consider own stocks as investment or saving.

Technical analysis gives advantage to both traders and investors also. Anyone can use technical analysis over any investment horizon!! Technical analysis is tool for identifying various situation in market so that you can buy stocks when they are trading at lows and sell them when they rises in price or dump them in adverse conditions they crashes!!

And one of the most advantages is that, you can rotate your capital among several stocks and allocating most to that with highest gains. Technical analysis is all about spotting good probability trade for minutes to years to execute trades and mints the money with help of that.

In adverse condition, Technical analysis gives us existence of exit plan and limits the loss risk. And without technical analysis, holding stocks without an end in mind on some concept of hypothetical value is to take 100% risk. So think about UNITECH, DB REALITY, MONEY MATTERS and SATYAM COMPUTERS etc. all failed companies whose stock prices gone almost to zero, even though expert told as buying opportunities in them till last minute!!

Practically preventing and controlling losses is more important that outright profit seeking for every technical trader.

Technical trading means trading with plan that identifies potential gains and potential losses for every trade ahead of time.

14. Important thing is that, you have to select your technical tool specially that match your trading style with your sensitivity to risk.

15. Last but not least, follow all trading rules that you are here about, such as "cut your losses and let your winners run" arise from professional technical traders.

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