Technical analysis
Technical analysis (TA) can help you achieve better results if you do not overestimate its predictive power. Technical analysis is especially good at predicting short-term trends and at indicating market sentiment. Fundamental investors (and one of the writers of this chapter) use them to choose their buy-in and sell-out point: given their fundamentally backed view on the direction of the market technical analysis is a valuable help in choosing the short-term optimum. It can also eliminate such common trading flaws as badly chosen position size (indication on the strength of the trend), shaky hands (only sell when there is a sign) and inability to press the button (but when there is a sign, do sell).
Three golden rules to remember ...
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