Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Don't Fools Discuss Technical Analysis?

By Jason Moser - Mar 25, 2014 at 1:28PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Here's why you'll never hear technical analysis discussed by Fools.

In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool analysts Jason Moser and Brendan Mathews take a question from a reader who asks: "I have been wondering about technical analysis (TA). I never see it mentioned by the Fool because it seems to be used mainly by traders, rather than investors."

Jason and Brendan both agree that technical analysis ultimately runs counter to Foolish investing, as it focuses more on trading patterns and less on business fundamentals. While there are plenty of traders who see technical analysis as a way to play the markets, it fails to take into account the individual investor's advantage, which is time. Long-term investing also allows investors to minimize frictional costs such as transaction costs and taxes, which can eat into overall returns. At the end of the day, each investor must decide which style suits them best, and Jason and Brendan both see long-term investing as the most rewarding.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/08/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.