Options Trading For Dummies
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As any experienced investor will tell you, there’s no single magic tool guaranteed to make you a profitable trader. Finding success in the market is about discovering, learning, and committing to the strategies and techniques that fit your trading style best.

Technical analysis is a useful trading tool that can help you decide what action to take when stocks trend a certain way. Incorporating chart analysis into your investing alongside other proven fundamental analysis methods is simply a smart way to strengthen your trading system.

Successful trading doesn’t mean that you have to be right all the time or even half the time. Instead, successful trading is about creating and consistently executing a reliable trading system. First, you must find the right tools to help you achieve those objectives. Technical analysis is an excellent tool for managing your money, controlling your losses, and enabling your profits to run.

Even people who base their trades solely on fundamental factors can use chart analysis to help them time market entry and exit points and gauge price volatility and risk. When it comes time to place a trade, even pure fundamentalists must become temporary technicians. It’s tough to buy or sell a stock without first taking a glance at its chart to help determine exactly where to place a limit order, for example. Using technical analysis successfully means
  • Being patient
  • Learning how to identify and properly use a manageable number of patterns and indicators
  • Becoming proficient at finding these patterns and profitably trading them
  • Adding methodically to your tool kit to improve your trading results

No method is foolproof. Nothing ever ensures successful trades 100 percent of the time. But technical analysis is an excellent tool for improving your trading results.

About This Article

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About the book author:

Dr. Joe Duarte is a financial ­writer, private investor and trader, and former money manager/president of River Willow Capital Management. In addition to Options Trading For Dummies, he is the author of Trading Futures For Dummies and Market Timing For Dummies. Visit his website at joeduarteinthemoneyoptions.com

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