5 Common Mistakes in Technical Analysis (TA)

We all know that the technical analysis is a very useful thing to analyse different types of financial markets whether It is stocks or crypto. Getting basic knowledge about technical analysis is always easy but it is difficult to master it, while learning it we can make mistakes and can face losses too, but still if we don't learn from those mistakes we will loss more. So, it is always a important thing to learn from our mistakes, and avoid doing the same mistake again and again.

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Well, through this article, I want aware you about some of the common mistakes people do.

Not Controlling Losses

This is a very important point to remember while trading, because you have to learn about protecting your capitals first from losing by minimise the chance of loosing. And this can be possible if you trade on fakd money or a small amount money for learning purpose and once your winning percentage becom high you should use real money with big amount.

Another thing you can also minimise your loss by using stop loss l, it will help to limit your losses in every trade automatically.

Overtrading

Overtrading is not a good thing to practice try to be happy with one trade because if you are winning and think you will again and again on a same day, that's your misunderstanding, remember trading is like winning plus loosing it can't be winning always doesn't matter how experienced you are. So becoming overconfident is also a negative point which, you need to avoid.

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Revenge Trading

As I said winning is not always possible in trading and loosing is a part of it so you need to accept it, some people started panicking once they loss good amount money while their strategy is same as before. And in context to that they started trading again and again to recover that amount of money, and that is called revenge trading which will ended up loosing more amount of money rather than recovering because you are panicked at that time and you can't use correct idea at that time just trying to trade with emotion.

Being Stubborn

Another point is you need to change your strategy from time to time, because crypto market is so volatile and things can change from time to time, and you have to plan strategy according to the ongoing trend and time.

Forgetting That TA Means Probability

Some times people who trade think that if they are too much experienced and they know enough technical analysis by which they are winning, and with that they forgot technical analysis helped them in predicting the things in some percentage out of 100 percent, but they think this is 100% predictable method rather than remembering this as a probability method, and because of that they loose major money in some trades.

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