Technical Analysis

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Technical Analysis

Introduction

Learning Technical Analysis

The Learning Experience

Profitable trading can be taught, my studies have proved this. However, not everyone wants to learn. This has more to do with an individual’s personality than intelligence level. This might seem a strange statement, but consider any competitive field and the requirements to achieve results. To become a top racing driver for example requires years of dedication and hard work. All that training, learning, re-learning takes discipline before results occur. Being motivated solely by money will not make you a better racing driver, or trader for that matter. Striving to be a better trader will make you a better trader. The money will follow. Unfortunately, most people allow other factors to interrupt the discipline that leads to the results they desire. When it somes to trading, quality education is essential and a desire to learn more about the subject.

The Challenge

My own intrigue in trading and analysis comes from the challenge, which for me is the ultimate mind game where the score is never in doubt. You can argue about any subject you want for hours, days, weeks or even years but in financial markets either you make money or you don’t end of story.

The Tools of the Trade

Technical analysis or technical trading as I prefer to call it, is a tool like any other and is only as good as the user. This is dependent on the time and effort that he/she will dedicate to learning the subject. Most people want to take the easiest route, but there is a cost for this type of short cut in the form of market surprises. If you make heavy loses in the market then there is no-one to blame but yourself and not your broker, analyst, the papers, the weather, your dog etc. This applies to what ever form of analysis or techniques you use. Like any subject, Technical Trading has fundamental principles that, whilst not necessarily hard to grasp, are key to the whole subject. These principles are the foundation to the rest of your trading knowledge. If you don't learn these principles, your chances of success drop dramatically.