Introduction

You have created your trading plan and thought through a money management strategy that works best for you. Now it’s time to define how you plan to make buy and sell decisions. What type of trader you are going to be? What type of tools or analysis will help you achieve your personal goals? Some traders and investors like to look at price patterns on a chart and technical indicators to make a decision, i.e., technical analysis. Some prefer to back up their decisions with news and data, i.e., fundamental analysis. Still others combine these two techniques.