The Basic Principles: The Six Tenets You’ll find that the principles that Dow discovered are still considered valid and useful. As much work as has been done on technical analysis in more than 100 years, the basics still apply. Here are the six principles that were compiled from his essays. The Six Tenets The averages […]

The Dow Theory It is generally recognized that technical analysis started with the work of Charles H. Dow. This is the same Dow who teamed with Edward Jones, and is still remembered in the name of one of the leading stock market indices, the Dow Jones Industrial Average (DJIA). Dow and Jones founded their business, […]

Criticisms of Technical Analysis There are some who doubt the usefulness of technical analysis. After all, charts can tell us where the market has been, but why should they reveal where the market is going in the future? Do you ever listen to the weather forecast in the morning to decide whether to take an […]

Technical Analysis v. Fundamental Analysis The argument for technical analysis vs fundamental analysis often comes up when people examine the available methods for making money in the stock market. Is one type of analysis better than the other? Should you concentrate on one method? Can they be used together? Let’s investigate… Technical Analysis Defined Technical […]

Trading Versus Investing Many people get confused between trading and investing, as on the one hand the goal of both is the same, making money, yet on the other hand when you look at the details they are really quite different. Trading and investing both involve the use of your capital, sometimes leveraged to greater […]

The Principles of Technical Analysis The Market Discounts Everything It is generally recognized that there are three basic principles or tenets that underlie technical analysis. The first is that the action of the market reflects everything there is to know about the price. This is extremely important, because underpinning technical analysis is the concept that […]

Module 1 – Technical Analysis and the Dow Theory Introduction Welcome to the first module of this comprehensive course in technical analysis. By the time you graduate, you will be able to analyze any markets, and should be able to trade successfully in all financial products. Technical analysis is the basic tool used by all […]

Stocks and Bonds You often hear about stocks and bonds in the same sentence, but they are very different. Stocks represent ownership in the company, and that’s it. If the company does not do well, then they may not issue a dividend, and if the company really doesn’t do well, and goes bankrupt, then the […]

Options If you like the idea of the leverage you get with futures, but are concerned about the possibility of runaway losses, then you may find that options are more to your taste. Options, at least if you are buying them, will only cost you a certain amount and that is paid upfront. There is […]

Futures Futures provide an exceptional opportunity for profit, which must be balanced against the risk involved. A futures contract is simply a binding contract to buy or sell something at a future date. The price is agreed and the quantity and quality, if appropriate, is set. A futures contract is a derivative, as any value […]