Introduction

                Technical Analysis is the method of analysing stock prices through the study of graphs in order to forecast future trends in stock prices. Just as a cardiologist analyzes an ECG and tries to determine the condition of your heart so does Technical Analysis helps in determining the future price trends.

Technical Analysis vs. Fundamental Analysis

                Technical Analysis concentrates on market action while Fundamental Analysis concentrates on the underlying fundamentals of the company, the various economic factors governing its prospects. Technical Analyst tries to find out what happens when prices move in a particular direction that is if a stock starts moving up does it attract more buyers and keeps going up or does it attract more sellers and fails to maintain the direction of the trend. Fundamental Analyst is always determined to know why the prices are moving in a particular direction, that is the price should not move without a reasonable logic or explanation. As a Technical Analyst use Fundamental Analysis to select a stock and technical analysis for the actual buying and selling decisions based on the various indicators or chart patterns. Best application of Technical Analysis is to approach the markets with a free and open mind and not with rigid and pre-conceived ideas that the prices of your stocks "should always move in the direction of your convenience and liking".First always remember taking the losses when they are small is not a crime or a bad word, so always use your stop losses or never put all your money in one go on one particular day expecting to make it big in one go - what looks sizziling early in the morning could have you crying to death by late in the afternoon.On any day your stock could move up or down irrespective of what your current position or idea about the stock is.