Some investors rely on technical analysis (basically, chart reading) when they choose stocks. This seems simpler than researching a company’s fundamentals. That analysis just zeroes in on how stock prices have behaved in the past and any clues that patterns may offer about future price movements. The appeal of reading charts is the approach often seems to work, at least in small ways. But this may be an illusion. You may only remember your successful chart interpretations. More important, this kind of analysis tends to work in spurts. There’s a distinct risk that while it might lead you to five or even 10 small wins, it can then steer you in the wrong direction at the worst possible moment. That misstep could more than offset your winnings up to that point. Chart reading is a useful tool, but only if you recognize it as one of many tools. Don’t let it determine your view of a company and don’t look to it for a..