Building a Good Technical Analysis Foundation
Many people ask about the best way to learn technical analysis and start investing or trading profitably in the stock market. The confusion seems to be initiated by the vast amount of resources available, be it books, courses, seminars, etc. However, many seem to forget that the tenets of techical analysis are esentially the same, and that differences only appear at a more advanced level. The following are "essential" tips every beginner needs to keep mind before starting this journey.
- Learning the basics by reading books written by people who do “not” claim they’re sharing secrets, because there ain’t any!
- Keeping it simple: Trend, volume and Time Cycles with a little fine tuning would be more than enough.
- Practice, practice, practice with a small amount of “real” money; an amount you are willing to lose, but that will teach you far more than any money you will pay on courses and seminars.
- “Always” use a Stop-loss, and “Never” ever average down.
- Get disciplined and never fall in love with your trades, i.e. plan your trade (with entry, targets and stop levels), and actually trade that plan!