According to Katie Stockton, technical analysis – reading stock charts to identify patterns – is a crucial tool for both hedge funds and Main Street investors. Stockton, founder and managing partner of Fairlead Strategies, shares the best ways to read charts in this special PRO Talks discussion available to all readers above. (PRO subscribers can see the full interview, including his second-quarter picks here.) “Technical analysis for me is an essential discipline and a really complementary discipline to other ways of approaching the markets,” Stockton told the CNBC senior markets correspondent Dominic Chu. “What we try to do through our technical indicators is identify trends.” The trader, who also runs the Fairlead Tactical Sector Fund (TACK), explains: How spotting a stock chart on a desk during an internship led to her lifelong love of technical analysis. The basic technical indicator, new traders should start their analysis. The patterns you look for when you make buying and selling decisions. Why the lei lei ETF is different from day trading and how it can help investors avoid nasty market declines. Because the use of stop-loss orders is a valuable tool for every investor. For his latest investment picks and strategies, PRO subscribers can check out the rest of the chat with Stockton here.