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The FT Guide to Financial Spread Betting by Stuart Fieldhouse

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8

Technical analysis

Once you start researching financial spread betting you will quickly come across people using what will seem like a bewildering array of charts and graphs to analyse markets. This process is known as ‘technical analysis’, and the people who rely on charts for their investment decisions are sometimes called ‘chartists’.

Technical analysis has been around for some time now, but it is gathering more adherents every month. The more traders there are who use technical analysis to buy and sell, the more accurate it becomes, as everyone uses the same factors. It is almost a self-fulfilling method of following markets.

On its own, technical analysis is not going to turn you into a millionaire overnight. It is really a tool to ...

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