People tend to think that it is easy to make money in the market. For me, to trade is easy, but to trade with profit is not as easy as you think. Even you’re a gambler in any market, out of 5 trade you will win 1. But if you know how to win 4 out of 5 trades, or even only 2 win but you win big and lose small, it shall be more interesting isn’t it? Your odd to make money is increasing!
Basically technical analysis is a technique to invest in the market by looking into price action. If you know how to interpret price action, you will always make money in the market. But if you misinterpret the price, that’s dangerous. Really, really dangerous. You will end up to buy at high and sell at low.
Technical analysis could also be defined as a psychology study of the people in the market. You will always realize later that people is buying and selling because of 2 factor, fear & greed. People want to make money and people don’t want to lose money. A person who put his emotion in the market will lose money.
You can use candlestick, bar chart, point & figure, trendline, moving averages, oscillators, MACD, and all kind of technical indicators. Just learn some of them and be expert in using them. You don’t need to know every indicator available, just choose the most suit indicators with your personality. There are people who feel comfortable with 5 indicators on his chart and there are people with no indicators at all.
If you’re really good in technical analysis, you can apply the knowledge in any market that you want share market, stock index futures, commodities, currency (forex) and bond. Just allow yourself to learn from the basic.
One Comment
yang trade tak guna indicator tu, bukan dia tak guna.. tapi indicator dah tersimpan di dalam minda separa sedar dia dah hehehe… second nature.
Pakdi: Hehe… gua rasa cam nih: Price -> indicator -> analyze -> trade (guna indicator) Price -> analyze -> trade (x guna indicator) adakah kau nampak disctinction dia?