Stock charts may or may not be a useful tool depending on who you ask. There are no guarantees as to what a stock will do in the future, however stock charts through the use of technical analysis are an invaluable tool at spotting short term trends. Buying and selling is all relative to timing. Knowing when to get in and when to get out is what separates the winners from the losers. Charts are one of those investor tools that not everyone knows how to use, and often get overlooked. I myself am really lousy at reading the charts, however I know others who are very good at it. Charts are very good in my opinion at signalling when a trend has begun. They are also very good at showing you when that trend has begun to reverse itself. If you are able to read these signs I believe charts are a legitimate tool which can assist you in timing your buys and sells properly, however charts don't provide anyone with guarantees, they only give you an idea of what a stock has been doing and what it most likely will do in the short term. The company itself will always be the best barometer of where it's share price is going. Knowing about how a company has conducted business in the past, and how it is currently conducting itself, as well as it's future business prospects, will always be the best indicators for the investor, it's called "Due Diligence".
