Did you ever say to yourself that maybe you should learn technical analysis? Some have decided to go on and try it. For many the thought just flutters through their mind and it’s forgotten. Many do not know where to start, so they abandon the idea. Others think it could be an excessive amount of work. Still others have problems with inertia and never get up enough energy to get off the couch and do something.
Hmm. Are those really valid reasons? Was the positive side included? Was that balanced? The negatives were covered very well, but what about the positives? Maybe we ought to take a more balanced approach. Let’s look at 5 reasons why you should learn technical analysis, in order to see if any one of them fit here.
First, technical analysis doesn’t consider any impending future event like the release of a government report. O.K., I’m able to go along with your objection that since most technical analysis is based on price chart data economic reports are not usual considered. I agree that it is a quite valid objection, but please consider, the number of times that a major piece of economic data or news was released and the market did the opposite of what you thought that it would. Furthermore, consider that it’s market movement that puts money into your trading account and not what you are anyone else thinks that the market will do in the future.
Second, some people believe that because technical chart analysis is a record of history and therefore useless to help determine the trend of the markets. The main reason behind that would be because they don’t realize that the recording of price movement tells exactly what the market thinks about the current price of the security being bought and sold lära sig teknisk analys. And in addition it’s what the markets think (as a collective group) that actually moves prices.
Third, price charts provide a visual representation of the emotion that a market is experiencing at any moment in time. And, this emotion adds volatility which in turn sends markets higher or lower!
Fourth, a trader who is astute at reading price charts can easily observe areas of support and resistance which act like decision points. This way a trader can allow the market to tell him if the market is really ready to move in a specific direction.
And Fifth, price charts provide a medium of communication between a trader and the market which allows him to follow what the market is doing. This allows the trader to develop a rapport with the markets and not fight it.
When you consider the reasons and evaluate them, I expect that you may have to admit that a persuasive case can be made for planning on how you can learn technical analysis.
Think about it. Maybe you really should learn how to implement technical analysis in your trading.
If you happen to look at the different reasons and evaluate them, you will have to admit that a very compelling case can be made for beginning to consider how to implement chart analysis into your daily trading.
Just consider it. Maybe, just maybe, you really, in all seriousness, should learn technical analysis and learn how to let me markets tell you how to trade rather than stress out and not know whether or not you are on the right side of the markets.