Technical analysis — reading stock charts to identify patterns — is a crucial tool for both hedge fund and Main Street investors, according to Katie Stockton. Stockton, founder and managing partner of Fairlead Strategies, shares the best ways to read the charts in this special PRO Talks discussion available to all readers above. (PRO subscribers can view the full interview, including her second-quarter picks here .) “Technical analysis to me is an essential discipline and a really complimentary discipline to other ways of approaching markets,” Stockton told Tech Zone Daily’s Senior Markets Correspondent Dominic Chu . “What we try to do through our technical indicators is identify trends.” The trader, who also manages the Fairlead Tactical Sector Fund (TACK) , discusses: How spotting a stock chart on a desk during an internship lead to her lifelong love of technical analysis. The basic technical indicator new traders should begin their analysis. The patterns she looks for when making buying and selling decisions. Why her ETF is different than her everyday trading and how it can help investors avoid nasty market drawdowns. Why the use of stop-loss orders is an invaluable tool for every investor. For her latest picks and investing strategies, PRO subscribers can check out the rest of the chat with Stockton here .