Using Technical analysis to trade the stock market gives you the greatest odds for success for many different reasons.

1. The Markets Live in the Future

It is hard to use fundamental data to predict where a stock will likely go in the short term, because the stock market lives in the future. On average the stock market tends to reflect what is going to happen in the economy 6 months down the road.

This is why we often see stocks starting to rally out of a bears market 6 months or so before the economy gives off signs of recovery.

This makes it very hard to predict what will happen next, but with technicals you don’t have to. You just follow the price action.

2. Trading Different Time Frames

Technical analysis works well in any time frame. There are many scalpers who use it to be in and out of a stock many times throughout the day, and there are many longer term trend followers who use it to invest for many months to many years.

No matter what your time frame is and how much time you want to devote to the stock market you can use the technicals to help you. No other method gives you so much flexibility.

3. It allows You To Cut Your Losses

The hardest part of trading is the losses. No one wants to hold a stock through a huge correction, no matter how much they are bullish on the stock in the long term. Technical analysis gives you exact points to cut your losses short and exit a trade if you are wrong.

This way you do not have to hold a stock through a major crash and hope you will break even eventually.

4. Technicals Can Be Combined With Fundamentals

The technicals do not have to stand alone. You can combine them with fundamentals to increase your odds of winning.

For more on Technical Analysis visit http://www.stocks-simplified.com/technical_analysis.html

For some Stock Tips Visit http://www.stocks-simplified.com/stock_tips.html

Author's Bio: 

When I was young I wanted to learn how to trade the stock market. So I traveled around the country listening to professional traders talk about how they are making money in the market. Now I understand how easy it is to make money in the stock market and started a site stocks-simplified.com to help others learn.