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CategoryPositioning

Basic stock technical analysis and charting techniques

Many traders rely solely on Technical analysis to give them the indicators they need to press the BUY or SELL button. As I outline in my Investment Approach, I do not place a huge reliance on technical analysis signals when making an investment decision, the simple reason being, technical analysis works until it doesn’t. In the long term the stock price always reverts back to the risked discounted cashflow generated by the company. In my view to make money from the stock market consistently a deep appreciation of the fundamentals is therefore required.

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