Overcoming Weaknesses in Technical Analysis

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Overcoming Weaknesses in Technical Analysis

Unread postby doaausef3li » 23 Jan, 16:23

Suggestions and Guidelines for Overcoming Weaknesses in Technical Analysis

Most beginner traders only patch the weaknesses of their technical analysis by changing indicators or spending time and money to find "holy-grail". Even though the shortcomings will be better improved by practicing trading habits as follows:
a. Apply Money Management.افضل شركة وساطة لتداول العملات
Money management (MM) is needed to control the amount of money allocation per position. This is far more important than changing indicators because MM can adjust how much our risk tolerance if prices move beyond initial expectations.
MM also helps us to survive in all market conditions, both ranging (sideways) and trending market conditions. This flexibility will train traders to maintain the integrity of trading capital even though they have suffered many small losses.افضل شركه فوركس
b. Use Stop Loss and Take Profit.
In addition to limiting the amount of money per position with MM, Stop Loss and Take Profit will provide additional protection for your account to minimize losses and lock in profits. Unfortunately, there are still many novice traders making mistakes in managing TP and SL.
With the above reasons, the use of TP and SL can help overcome weaknesses in technical analysis, especially if the moving position does not match the entry signal. If loss, the SL will immediately close the position to prevent greater losses. Conversely, if the position is still floating, then the TP will lock in profits at a certain price level before the price reverses.
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