Perform a technical analysis when trading
Instructions
- Familiarize yourself with the fundamentals of technical analysis.
Get to know the basics of technical analysis, such as chart patterns, trend lines, and support and resistance levels. You may search for some legitimate sources like books or courses to help you understand this. - Recognize the market's behavior patterns.
Observe the market and identify patterns that tend to repeat themselves with a high degree of accuracy. - Examine the data.
Analyze the data to predict what is likely to happen next, based on the type of patterns the market has produced in the past. - Construct a trading strategy.
Create a trading strategy based on the analysis of the data and the behavior patterns of the market. Make sure to perform enough research to do this. - Acknowledge the risk.
What are the risks associated with your trading? Acknowledge these risks and make sure you’re brave enough to take them. - Adjust your attitudes and beliefs.
Learn to trade without fear and maintain a framework that prevents you from becoming reckless.
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