Technical Analysis Tools For Long-Term Investing

Buying a share at the ‘right’ price is the only thing an investor can control in the investment process. Looking at some charts may sharpen returns in the long term.

- Simon Brown

In the 22 October issue of finweek, I wrote about how I am trying my hand at trading local equities for the first time in over a decade. Some aspects of my index trading have helped (discipline and risk management), but stocks are more volatile and need a different approach to my index trading methods.

What I didn’t expect was how spending the extra time looking at equity charts for buy and sell signals would get me thinking about my long-term investment portfolio.

I have written before about how, as long-term investors, the only part of the entire investment process we really control is what to buy and then, most importantly, what price to pay. This is about valuations and buying great, quality companies at great prices.