It doesn’t matter whether you are an experienced trader or a newbie, ultimately everyone comes to understand that trading analysis falls into two categories: fundamental and technical.
And, despite the fact that there will always be those who say that one type of analysis is much better than the other, successful traders agree that their combination is the best solution that will help in trading.
Not for the first (and not for the last) time we will talk about trade analysis. It seems to us that now is the right time to explain the main ways of correctly using technical analysis.
1 – Do not build your strategy solely on technical analysis
It sounds controversial, right? But it is. You should not build a trading strategy only on what the charts show, because, in this case, you will limit yourself very much.
The point is to find opportunities everywhere. In addition, markets are strongly influenced by investor psychology, which is not always reflected in trading indicators.
2 – Take technical analysis seriously, this is not a hobby
There are many people who are confident that trading analysis is a kind of hobby, just go to some topic forum and you will understand what is being said.
Such a course of action will not allow your capital to grow further – this is a fact. Why? Because trade involves a methodical, constant and accurate approach, which should not be affected by emotions and which reduces errors due to the human factor to a minimum.
3 – Use multiple indicators at the same time
Using one magic indicator will help you become bankrupt faster than you notice. As we said earlier, you should be open to new ideas and not trust any formulas for success. Considering the tools you use for trading, find at least three indicators you will rely on.