A trader looks at his screen as he works on the floor of the New York Stock Exchange March 13, 2014.REUTERS/Lucas Jackson
- In the stock market, there are two primary ways investors can analyze stocks: fundamental analysis and technical analysis.
- Whereas fundamental analysis focuses on valuations and the underlying strength of a business, technical analysis solely focuses on price action and stock charts.
- Stock charts can be a helpful resource for traders who are trying to navigate a volatile market, especially in 2020, which has seen big swings due to the coronavirus pandemic.
- Here are the six best books to read about technical analysis.
- Visit Business Insider's homepage for more stories.
Investors in the stock market tend to focus on two different ways to analyze stocks: fundamental analysis and technical analysis.
Whereas fundamental analysis focuses on valuations and the underlying strength of a business, technical analysis solely focuses on price action and stock charts.
Technical analysts believe that stock prices often trade in patterns, as the motivating driver behind the movement of stocks is humans, and humans exhibit the same emotions when it comes to their money: fear and greed.
Technical analysts attempt to take the emotion out of investing by solely relying on the patterns found within charts to trade stocks, potentially giving them an edge over investors who are susceptible to making trade decisions driven by fear and greed.
The books highlight popular chart patterns that technical analysts use to buy and sell stocks.
Here are the six best books to learn more about technical analysis.
Read More: How Fidelity spurred a 147% productivity increase during the coronavirus pandemic, setting it up to hire thousands more workers