Always combine technical analysis with fundamental analysis Successful traders always combine the two types of analysis. This is because technical analysis tends to focus on the past events and fundamental analysis focuses on the present and future issues.
In addition, there are certain situations where technical analysis will not provide adequate solutions. For instance, technical indicators are not programmed to predict the outcome.
In such situations, it is important to rely on fundamental analysis and avoid the market because no one knows the exact number and how the market will react.
Understand the indicators It is also important to understand the indicators to use. Different one have different ways of analysis.
It is important for you to take time to learn these indicators and how they should set up. There are many learning materials which one can use to learn how the indicators work.
I recommend that you take at least 2 months to learn the indicators using a demo account before using real money.
Use Few Indicators As stated before, many traders make the sad mistake of using very many indicators at a go. Always remember that two is a company, three is a crowd.
Traders who use more than two indicators at a go make mistakes because of poor visibility and poor market data interpretation.
Therefore, I recommend that you use at most 2 indicators per trade.
Patience In day trading, patience is an important aspect without which no trader can make it. In fact, some indicators are usually require more time before their predictions can come true.
Following these tips, your indicator-trading will go to the next level. Do you agree with all these tips?
Hey traders, let me know what subject do you want to dive in in the next post?