How Investors Can Prosper With Technical Analysis

Many investment advisors and money managers have a little secret. They will proudly tell you that they rely heavily on fundamental analysis, carefully weighing earnings, market share, competitive environment and demographic trends to select the best stocks for their clients. What they do not tell you is that they check their stock charts before they make any moves.

Why? Because technical analysis of the market - using charts - still is the best way to know whether their other analyses are validated in the real world.

Let's say a company creates a new product that they project will sell millions of units at a handsome margin. They even get favorable reviews by critics at their industry trade show. Investors armed with this intelligence buy up all the shares they can - then watch them drop sharply in value.

How can that be?

What those investors did not know was that the stock was already up 50%