subject: Need for Technical Analysis of Stocks for Profitable investments in Shares [print this page] Need for Technical Analysis of Stocks for Profitable investments in Shares
Most of the investors in Indian Share Market do trading on the basis of the recommendations received from their share brokers, friends, paid stock tips providers or from the TV channels. Most of the time their success rate is purely depended on luck since they do not want to do any kind of analysis or rely on someone else to do the analysis. Only few do the required fundamental analysis and technical analysis before investing in any stocks and undoubtedly they are the successful investors most of the time.
Why We Need Technical Analysis ?
The Fundamental analysis will enable you to chose the Right Stock for investment, but when to enter in to that stock and when to exit from that stock cannot be known from Fundamental Analysis. Here is where the technical analysis can help, it will help you in deciding the timing for your investment when to enter, when to exit whether it will be a short term or long term. There are many Tehnical Analysis methods used by Technical Analysts. But the most popular and powerful among them are Japenese Candlestick technique and Moving Averages. Technical Analysis is not an Rocket Science anyone who is already in stock market investment and interested can start learning the technical analysis and make wise investments on their favourite stocks. However being an technical analyst on our own is not an easy task and it cannot be achieved within few days or weeks. We need to study the theory about various technical charting patterns and test them in some of the stocks without investing and learn about it's success and failure rate. Once you have done the hard part of learning and practicing the technical analysis there is No end to your successfull investment and trading in stocks. To start learning and practicing the technical analysis of stocks you can try on the demo version of Technical analysis software like Stocktech or amibroker or metastock. Once you gain the confidence you can purchase the full version of the softwares and start making wise investment decisions on your own.
