Lack of a Solid Strategy
The core root of all problems in life is lack of education. This business is not any different because thanks to an education I will be able to minimize my problems, and the first in this miniseries is the lack of a solid strategy.
The first thing you need to learn is how to approach the market in a systematic way and although this is technical analysis, you must understand that no one method of technical analysis will work all the time!
One of the first things I ask to anyone, who gets in touch with me to join the club or to initiate a service is, “do you know technical analysis and money management?”
Another famous sentence for anyone taking the trader program is “We are going to learn technical analysis but just understand that technical analysis does not work!” 🙂
Please explain?
There are several ways, methods of technical analysis and no “one method” works a majority of the time. So you need to know a few different ways to look at the market because when one does not work the other or other two will work!
This is why we learn five different techniques! It allows us to confirm pricing and direction with more than one approach. Why is it important? It gives you multiple confirmation on pricing and a zone you can say highly likely good price or zone to enter into the trade.
This is why many people will learn a specific way of technical analysis and in that one way of trading will just get annoyed, and then people start to research other methods and it turns into a never ending game of looking for the best techniques, best indicators, the best holy grail etc.
So if no one technique can work all the time or even fifty percent of the time then using multiple approaches to assign a level and zone that collide and correlate makes sense! I think so any way.
So if you want to trade you must look into a few different approaches and bring them together.
The technical you apply properly is crucial because now you are going to use that skill set to determine your risk! The money management is only possible if you can measure and approximate market moves otherwise you cannot manage risk.
Some people will resonate more with a certain style of analysis than another but I would still make a decent effort to get your head around them and the practical application with practice.
Link to the YouTube video: https://www.youtube.com/watch?v=h0mJ8suM5aU&t=2s
