Over 70% of CFD Traders Use Technical Analysis or Charts to Make Trading Decisions

SYDNEY, February 11, 2013 /PRNewswire/ --

Technical Analysis proved to be by far the most popular method of determining what trades to make for Forex, index, commodity and share CFD traders in 2012 Investment Trends Australia CFD Report, conducted in May last year. LCG Markets' leading ClearTrader and MetaTrader 4 platforms allow the avid chartist a comprehensive suite of tools to apply across their charts plus access to over 2,000 pieces of analysis expertly crafted daily by Trading Central. One of the most successful technical analysts, Richard Dennis - trainer of the Turtles, amassed a fortune of over $200 million in his trading lifetime and many hedge funds and money managers use Technical Analysis for their buying and selling decisions.

The report found that 70% of CFD traders use Technical Analysis when determining what to buy and sell and those most likely to use Technical Analysis are frequent traders. Interestingly, Fundamental Analysis came in second favourite at 37% with Analyst Recommendations hitting the mark at 25%.

Technical Analysis is a study of historical price information using indicators and technical tools to determine the  possible future direction of the share, index, commodity or Forex pair you might be trading. One of the most famous proponents of Technical Analysis is Richard Dennis, who founded the Turtle Traders, and amassed over $200 million during his trading lifetime.

Whilst Technical Analysis isn't the Holy Grail and golden path to riches, many traders feel it gives them a lot of control and puts the odds of success in their favour. Ashley Jessen, Director of LCG Markets Australia, suggests "Successful trading is all about putting the odds of a profitable outcome in your favour and many traders believe Technical Analysis can provide that edge."

 "Many successful analysts tend to categorise their indicators according to the type of market they are trading, such as trending, range bound or volatile markets. Moving averages for example work best in trending markets whereas oscillators like the stochastic or RSI indicators, work best in range bound markets. Successful traders spend countless hours applying their indicators across a wide range of market conditions to identify those which will give their trading systems the edge needed to boost their bottom line." Commented Jessen.

"Many traders start with Technical Analysis but come to the conclusion that it can be quite time consuming, and in many cases, the next step is to invest in powerful charting software to automate the process or find a resource whereby the Technical Analysis is done for you daily."

"LCG Markets has teamed up with Trading Central, which has over 30 analysts working full time dissecting the market and providing over 2,000 pieces of analysis per day across shares, index, forex, commodity and bond markets, saving our clients hundreds of hours of analysis," added Jessen.

"If tools or services exist that better automate your daily routine and make you more efficient at trading the markets, then all the better." Jessen continued saying, "Logging in to your live trading platform and clicking on the tab to access the research takes seconds. From there you select your preferred market(s) and view the comprehensive suite of analysis already done for you."

"Richard Dennis carved out a $200 million trading career using Technical Analysis and then taught a selection of people across all walks of life to use Technical Analysis to amass their own individual fortunes," said Ashley. "Our Technical Analysis tools are available free of charge to all our live account holders."

To find out more about our choice of trading platforms, including MetaTrader 4 and our web based ClearTrader platform, visit http://www.lcgmarkets.com.au and discover why last year we came top for Value for Money, Spreads and Customer Service In the 2012 Investment Trends Australia CFD Report.

About LCG Markets

LCG Markets is the trading name of London Capital Group Pty Limited which is regulated by ASIC and is fully owned by London Capital Group Holdings Plc which is listed on the London Stock Exchange. London Capital Group transacts over 30,000 trades each day and has over 70,000 clients globally across our MetaTrader 4 and proprietary ClearTrader platforms. LCG Markets is regulated by ASIC under AFSL 364264.

CFD trading carries a high level of risk to your capital and can result in losses that exceed your initial deposit. CFD trading may not be suitable to for everyone so please ensure that you fully understand the risks involved.

While LCG Markets attempts to ensure that the information herein is accurate at the date the information was produced, it does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of any of the information provided herein and under no circumstances are they to be considered an offer, solicitation to invest or be construed as giving investment advice.

SOURCE LCG Markets