There are two basic types of analysis that experts use to pick wining stocks. They are technical analysis and fundamental analysis. Both types have their followers and their non-believers. However, since both help decide the direction of the stock market, it is important to know something about each. In this issue we will be talking about technical analysis. Next week I will talk about the different styles that technical experts use to pick out winners. …showed first 75 words of 435 total…

…showed last 75 words of 435 total…a handsome portfolio is to invest for the long term, not for the short. Random Walk Theory This theory, developed in 1900 by a French mathematician, contradicts the market timing technique. The random walk theory holds that the price history of a stock is of no use in forecasting future price movements. Rather, the short-term movement of stock prices is inherently random, so they are no more predictable than the staggering of a drunk. ------------------------------------------------------------------------ **Bibliography**