Topic: Trading psychology and TA (Read 1196 times)

Everything should really be that in harmony or getting in line in speaking about the ways or methodon which if you are really that doing it on active manner then it would be of course needing up that active approach
when it comes to the things that you would really be doing. It would really be something that you will be able to see and notice it out on the moment that you would really be doing out such actions.
Trading psychology is something that you would really be normally be able to come up on the time that you would be able to assessing it out on what are the things that you are currently doing.
It would be normal that you would really be that mindful on what are the tools and analysis that you are applying basing up on the timeframe that you are really that trying to achieve on.

It would really be impossible that you cant really be able to make yourself that thinking up the best way or possible method that you could be having that kind of advantage. Although its never been
that an assurance that you could be ending up positively on which we know that when it comes into this aspect then it would really be that truly cant be predicted on what would happen in the
future on which it would neither a hit or miss but of course youw ould really be having that have better chance if you do know on how to apply analysis and other related aspect like risks
management and stuffs.

Well, this will also affect our analysis, I mean when we do daily trading, of course we will analyze the market with a time frame. We ourselves will definitely determine whether to use a short or longer time frame. If we pay attention to market movements from a certain time period, of course we must also understand very well where the price point or moment is that we can enter it. Especially if we trade with a short time, besides we must be able to analyze the market well, we are also required to have a very strong mentality. Because in such a short time we will have a much greater risk. We can lose money in a very short time. Well, we also have to pay attention to risk management, because when our predictions are wrong, at least we can still minimize the loss.

True, but this only concerns your strategy, in trading you can never be completely sure of any deal, the market can present unexpected surprises, so if we are talking about day trading, you need to be ready to react to the situation very quickly, in fact, this is a job that requires your full presence all the time while your deal is open.

With medium-term deals, everything is simpler, you can even use averaging, or other techniques that are acceptable for your strategy, here there are more opportunities to correct a mistake if you decide not to exit the deal but wait for the outcome. This once again shows how important it is to have the right strategy in addition to TA, in trading you can only succeed if you approach it comprehensively.

Even though we can analyze very well, the market can be unfriendly to us and that makes our previous analysis messy. In a situation like this we need calm, as much as possible do not panic because it will cause us to do something that we should not do. Therefore, our mental readiness in the worst situation is very much needed, because we will not always be in a bad situation, especially this is a trade that we know ourselves how it is in it. The analysis we do will not give us a guarantee that it is what will happen, we still have to stay focused on paying attention to fluctuating market movements. If possible we can make some plans, so that when the first plan does not work we can use the second plan. A strategy like this will be very useful when facing the worst.

In TA there are things that work better, like Elliott Waves, or trend definition, and defining figures may not be such a simple task, you can make more mistakes, but in any case, TA needs a comprehensive approach to take into account several tools for making a decision on the trade.

If you open a deal simply because the trader decided that now is a good time without preliminary market analysis, then I agree that this will be just a 50/50 deal, maybe you will be lucky and maybe not. It is difficult to explain in one post, for this you need to spend many hours with visual examples, but it seems to me that in the beginning, every beginner tried to make deals based on their assumptions, and not on market analysis.


You can be as confident as you want in the correctness of your analysis, but the market can go in the opposite direction and eventually form something else, so the ability to correctly determine what is happening on the market is already half the success. For this, you need to spend too much time with charts and take into account reading them, if there is time and desire for this, then the trader can become successful, and how successful, it will depend on the trader.

I agree with you that it is impossible to predict accurately where the market will move. We can analyze and predict it but we cannot guarantee that it will actually happen. Moreover, the market conditions are very volatile which is very confusing. We can only try our best with the knowledge and experience we have. If someone claims that they know where the market will move, then I personally doubt it, because usually even a professional will not say such convincing words, especially if it is a claim.

Being confident in our abilities is a good thing, but we also have to know so that our confidence does not become excessive confidence, because being overly confident is also not good. We do that to cover up the fears we have. But of course we must not forget to be careful. Emotions must always be in a stable state, because if our emotions are unstable, then when we do an analysis it may not be optimal based on our knowledge and experience. Only we know whether our emotions are stable or not, because it comes from within and we can tell the difference, although it is quite difficult to tell the difference if we are not used to it.

As we put it this way, trading signals are not reliable at all. If someone will offer you such service, keep in mind that they are only after for the money. Up until now, no signal trading groups have become popular because they are giving  useful signals or should I say, living up to their claim. If there's one, then, we should be hearing it by now. But unfortunately, no group yet has emerge to be the frontrunner on this type of service.

So if possible, rely on yourself. Educate and train yourself. It is a matter of time before you will acquire those trading skills and strategies that you can use in your lifetime. Signals are for lazy traders who don't want to learn on their own. Do remember, they have their own motives why they are selling their service.

Impossible to know, "crystal ball" is a scam and so are fortune tellers and those who claim to know which coin is going to rise in the next few hours thus selling it as a "signal".

Indeed, being able to control those bad emotions whenever market is rising or dropping is important. Be the balls of steel person here, you just have to execute the proper trade and not get scared. The objective is to be able to run the positions such that you profit, in the meantime you have to hold your ground and wait it out, painfully often for months.

On the moment that you would really be boggling up your mind on how this market behaves or works on which same as you had mentioned above that when it comes to volatility then its true that there's no way
that we could really be able to predict on where it would be going and this is why it would really be the reason for you to make out those predictions and guesses on where it would really be going. It would really be just that becoming a gamble on the moment that you wont really be applying any analysis into it. If you are really just that placing up your position without any basis or analysis been applied then you are just basically doing 100% gambling.Whereas, into those traders or people who do make having those kind of technical and fundamental analysis on which they are really that trying out to lessening up the risks on losing such trade.

Somehow there would really no assurance that you would really be able to make those profitable trades due to unpredictability but it would really be always best that you should really be applying
into those things on which really needs to be applied if you are really that serious on trying out to make some profit within this market.

When you mentioned gambling it made me feel this way;
Do you ever know the outcome of a trade from the beginning? The market is a space of random variables and that's a gambling feature. The good thing in trading is we are able to put the variables to our favour with some sort of trading skills yet we don't win all the time.
Have you closed a winning trade at lose? That's because you tried escaping this feature of the market but the right psychology would make known all these facts to your thoughts about the market. Without good psychological behaviors it's difficult to remain disciplined (follow your risk management plan) in the market.
So in as much as you are very good with your TA+FA I think it's also necessary to maintain good behaviors in the market.

This is why wise people say that when a person is emotional i.e. very happy or sad then he should stay away from any kind of decision. Because at that time people are guided in the wrong way which can ruin the whole life of people. So before starting trading you have to judge yourself first understand your own mentality and be free from greed which is very important for proper and beautiful action.

Psychology is a lot more important in these cases, I feel like that makes it quite better and makes someone understand the situation a little bit more. I am not saying that we are going to end up with something marginal, after all psychology has limits to a point, but we have seen people who invest more than they can afford to lose and unalive themselves, think about how radical peoples actions could be, so you never know who you are going against when trading.

I personally believe that we should focus on the TA a bit more, it is not as wavy and it has some good return possibility as well. We should just try our very best and could probably do a lot better with what we have, that should not really be an issue at all.

Fundamental analysis is usually applied to long-term trading. while psychology and technical analysis are needed for short-term trading, by drawing technical analysis we can have an idea of ​​where the market will go next, by having a solid framework, psychology is needed to carry out the scenarios that have been described in the framework, where we have to wait to price enters the buying area and vice versa

Strong fundamentals are definitely required because if the fundamentals are not strong then the project can collapse at any time and we would lose all our gain, provided we don't have a stop loss order in place.
Strong fundamentals should be a prerequisite and on top of that we can use psychology and take positions based on technical analysis.
This would give us better profits and more number of winning trades.

Committing a trade is not just you having the budget, the platform, the current state of the market. Also you need to consider your emotions, are you capable of making a trade or not this, might affect your decision making the market is volatile things might happen so expect a ride of emotions too one mistake can ruin your position or even your whole trade. For me psychological state has an impact to a person by this you can easily identify to yourself are you still on the ground to make a trade or you are too much greedy or hopeless to gain profit or just call this for a day.

In my opinion, psychology and fundamental understandings are more important than technical ones because if you have good knowledge about psychology of market cycle, fundamentals of a project, for instance, Bitcoin, then have a good strategy, plan for your investment or even trading, you will have more chance to succeed in long term.

Even you make bad decisions for your trading positions that are temporary in losses, if you don't use leverage or futures trading type, you can hold your positions (in Spot trading type), and wait for opportunity to exit with a draw or better with profit.

If you lack of these things, you will have no second chance to find either draw or profit for your positions.

You would really be able to find out for yourself on how things should really be done. Im not saying that you would really be needing to make it use individuall but rather you would really be needing on using up both at the same time. Why? You cant really just focus on a single point at the moment that you would really be doing trading. You cant just think up about TA but rather you would really be needing on getting lined with your emotions or simply with your psychological conditions on which you will really be needing up those considerations too. This is why at the moment that you would really be doing trading then you should really be that focused and of course making use of any possible analysis on which you could really be able to apply into and not really just confidently doing up positions without proper planning.

We do know that this market cant really have anytime to have some sentiment on which you could really be able to apply into and this is why on the moment that the market would be making out some moments
on a random manner without even knowing on whats the reason behind then your approach would really be different on next time.

You seemed happily to ignore my question while back and keep on bashing "Psychology", and i still haven't seen you in anywhere even explaining what you mean by that psychology.

And at the same time you are praising TA, like it's some kind of a monolith and just one thing that can be done in one way. It contans various different styles and indicators and idea of most of them working in any level is highly questionable, and most of the time impossible to prove. So please elaborate what in the earth you even mean about TA, especially when some indicators are purely basing on group psychology.

Neither technical analysis nor psychology works good when they are done individually.
To make the most out of the trades both of them are needed to be used together.
I have personally carried out both individually as well as together and tested it and it works well when both are combined.

To be  well organized as a sophisticated trader both technical analysis and psychology are in-part very important in leading to a successful win on any trade. You don't rely so much on one and overlook the other, in fact they both work in synergy to put the trader in the right direction with his strategy entering  the market.

A trader can have a great T.A about the market and gets in but ends up losing that trade due to a lack of a strong psychology on his part when the market throws a fake out at him.  You have to be prepared for the two because that's what it takes to win.