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Mastering Technical Analysis: A Guide to Successful Stock Trading

If you are interested in learning more about stock trading education, don’t be afraid to try out e-learning. According to Grand View Research, the global market size for e-learning was valued at $144.7 billion in 2020, and it’s projected to expand at a compound annual growth rate of 9.1% from 2021 to 2028. The growth of e-learning can be attributed to the sheer variety of high-quality courses available online. Continue below to get a glimpse of the trading-related courses I provide as I discuss technical analysis.

Defining Technical Analysis

Let’s begin by defining what technical analysis is. Technical analysis is a method traders use to forecast how the prices of stocks may fluctuate. To make their predictions, traders who utilize technical analysis focus on trends previously established by trading activity and price movements.

Three defining principles also guide technical analysis. First, traders who use technical analysis believe that the market discounts everything. They also believe that stock prices move according to trends. Finally, they subscribe to the idea that price movements and patterns will repeat.

By studying the available information and adhering to the guiding principles of technical analysis, traders can better understand stock behavior. They can then use all the data to decide if investing in a particular stock is worth it. Because the information used in technical analysis is available for different types of securities, traders can use this tool in various scenarios. They are not limited to dealing only in stocks.

Traders will use various resources to obtain the necessary information for technical analysis. Volume charts are beneficial because they provide neat summaries of trading activities for certain days. They will also base their trades on price trends, moving averages, and other relevant indicators.

How Technical Analysis Differs from Fundamental Analysis

I also wanted to touch on the topic of technical analysis vs. fundamental analysis in this stock trading education course. For those unaware, fundamental analysis is a forecasting method that accounts for data beyond stock price. To ascertain the true value of a stock, traders who use fundamental analysis will also consider a company’s current condition and broader economic forces.

You can see the difference in technical and fundamental analysis based on how much value they put in the stock price. However, you do not have to choose between the two methods when trading. Many traders will even use technical and fundamental analysis to evaluate markets. They believe using all that information will allow them to make the best moves.

Hopefully, this snippet of my stock trading education course has already given you valuable information. Let’s work together if you wish to learn more about this important topic. Check out the available stock trading education courses or give us a call today for more information!

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