Preface

The only purpose of this book is to help you improve your performance in the stock market using technical analysis as step 1 and fundamentals as step 2. Our approach will always seek to make the book a “mountain climber” because learning to invest and trade stocks is an adventure. Any book on the subject should be exciting and challenging. These qualities are appreciated by every audience, whether professional, educational, small investor, or trader. To accomplish this ambitious objective we will always subordinate the instructions on esoteric technical signals to the more fascinating discussions of individual stocks, and how technical analysis signals would have enhanced your gains in trading or investing in the market using fundamentals.

Traders already know the importance of using technical analysis, but many investors have yet to learn. Traders are forced to use technical analysis because fundamental analysis often does not explain the price movements of stocks in the short term. Technical analysis of supply and demand does answer that challenge. Investors, however, can avoid using technical analysis until they realize that those that use both fundamental analysis and technical analysis have the winning edge in beating the Standard & Poors (S&P) 500 Index. As the past 10 years have proved, investing your money in an index fund has yielded little, while many famous blue-chip stocks continue to outperform the index. Technical analysis makes it easy to stay in these outperformers ...

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