Final answer:
The statement that technical analysis is used only for specific securities and not for predicting overall market movements is false.
Step-by-step explanation:
Technical analysis can be applied to both individual stocks and to entire markets, analyzing patterns of price movements, trading signals, and other statistical indicators to forecast future price trends. Traders and analysts use graphical charts and other tools to identify patterns that suggest future activity, based both on historical data of individual stocks and larger market indices.
However, predicting future stock winners is inherently difficult, largely because stock prices often follow what is known as a "random walk with a trend". This means that, while stock prices can move unpredictably in the short term due to unforeseen news affecting expectations, they tend to have a general upward trend over time. This trend reflects the underlying assumption that economies grow and businesses expand over the long term, leading to a gradual increase in stock prices.
Investors seeking financial growth are advised to pursue further education and training after high school and to start saving early, rather than solely relying on stock market speculation. These practices form a more reliable foundation for accumulating wealth over the long term, compared to the highly speculative and unpredictable nature of stock trading based on future expectations.