30. Case Study—The Perfect World
Now that you know what charting and technical analysis are all about and that they are not going to replace your current means of stock selection at this time, the pieces can be assembled together in a case study. This involves the major areas of recognizing trends, finding patterns, and using supporting studies to assess the stock market and pick a winning stock.
Here’s the process:
• Determine if conditions are favorable for equity assets using our current analytical techniques (earnings, inflation, etc....).
• If they are fair to good, then determine what sectors of the market would be best to focus upon.
• Now that the best sectors are found, which stocks should you buy?
• What technical tools should ...