Today, I prepared the most fundamental and crucial materials that every trader should be familiar with.The act of exchanging or trading something of a certain value is known as trading.When we look back at our history, we can see that humans have always traded something within the social community, starting in the Neolithic Age, in order to grow into a more advanced civilization or to ensure our own survival when we have enough food or resources.Trading (buying and selling) was always there when the surplus economy and self-sufficiency economy resulting from food production emerged, long before the concept of currency or money.
However, if we lose money when you buy or sell something, it is unreasonable to trade, right?Within this immutable boundary, humans have always traded at a value or price that is proportional to supply and demand.And because we are so envious, we have been trading in a way that helps ourselves in some way.In a sense, I believe this is the fundamental concept of capitalism.
Regardless, our ancestors naturally focused on making money from trades, making and losing money from them at different times.And at once realized.Ah, over time, both the quantity supplied and the quantity demanded change.As a result, the value of everything in this world, even abstract ones, fluctuates over time.Oh, if I use this well, I can make money?”
People with the temperament of smart entrepreneurs have naturally created a culture of profit taking.The economy and financial markets eventually emerged as a result of this, and a number of market participants entered the market with the sole intention of earning profits—that is, for investment purposes.To make money using the market, people who have a solid understanding of the supply and demand principle have traded according to certain standards.Some people are able to trade based on the weather (buy when it's sunny, sell when it's rainy), others by rolling the dice (buy when it's high, sell when it's low), and still others simply by feeling.Naturally, economists studied after realizing that trading on erroneous and illogical standards would ultimately destroy them.And was aware of it.Ah, let's look for a good standard to use as a starting point.Based on what I've seen so far, does it profit from trading based on information about the product and its fluctuating value?Let's get to the bottom of it!
Additionally, they developed an outstanding science.Analyses based on data, Fundamental Analysis (FA), charts, or data from previous transactions, and Technical Analysis (TA:Analysis of the Technical)
FA is a technique for determining whether a product's intrinsic value is currently over or undervalued.For instance, if we want to invest in a company, that is, if we want to purchase shares or stocks in that company, we are required to first estimate the growth potential and potential of the company, am I correct?By looking at the company's financial indicators, such as positive and negative news, past asset/revenue growth rates, etc., you can accomplish this.
On the other hand, TA is a way to make decisions about investments by referring to various theories and indicators that have meaning in charts that show past price movements and momentum intuitively.
Of course, doing both FA and TA would be best, but retail traders and individual investors, like us, have limited time and technical resources to receive information, analyze it, and immediately incorporate it into investment decisions.It is not sufficient for traders to be deceived by a variety of false information; even if the information is trustworthy, it is highly likely to begin at a loss, even if it is received a little later than others.
Long-term market trends can be useful, but when this information reaches the general public, it is likely that institutions have already priced it in (Big Parties).It's hard to survive in this market with only FA because you need a lot of information and a computer that can do FA quickly and accurately.It is risky to make an investment using just one FA standard because the risk is too great.
As a result, if you want to make a good investment decision, you need to use TA to find a more precise trading position. In the end, if you want to be an experienced investor, you need to learn TA.
A technique for predicting future market trends by examining a digital tool called a chart that digitizes a product's overall price volatility and momentum is the dictionary definition of TA.I am a person who is not entirely in agreement with this meaning.The word "prediction" itself is extremely risky.Without being gods, even the best investors in the world cannot predict future prices.Prediction falls outside the realm of technical analysis.Because of this, our traders always keep a variety of potential scenarios in mind when they look at the charts and come up with appropriate countermeasures accordingly.
If I were to dare define the meaning of the term "technical analysis" with less than ten years of trading experience, I would say:Personally, all TAs are based on historical data and various theories (or methodologies) and technical indicators. The first step is to probabilistically determine the market trend, which is whether the price is moving upward or downward, and the second step is to identify the price action, which is support resistance.I believe it is an analysis method that most likely derives the sections.
These kinds of questions may arise from time to time.No, how do you use only historical data to find a trend and price action interval?
I fell in love with market analysis for this reason.A method known as technical analysis was used to statistically pattern and quantify the investor psychology of greed, doubt, fear, and other emotions.with a lot of historical data.Surprisingly, this probabilistically also takes into account external variables that have the potential to influence the market, such as positive and negative news.I have experienced the power of technical analysis numerous times, and there have also been numerous instances in which the good news or the bad news came out amazingly at just the right time in situations where referring to the chart was the only option.The study of technical analysis reflects not only the pattern, timing, or frequency of such good news and bad news, but also the instances in which Big Parties leak news to the media in order to capitalize on popular psychology.
Regardless, once you have probabilistically derived the market trend and price action section using TA, you must design a trading strategy based on the circumstances.Nagging is one of the words that I keep emphasizing.You won't be a good trader just by looking at charts.The portfolio's structure, the profit/loss range, the amount of seed to enter, the high/low multiplier, and profit/loss response strategies are all covered in this trading strategy.
To stop non-thinking trading, a well-thought-out principled strategy is also necessary.It is simple to design this principled strategy, but it is extremely challenging to follow and put into action.These principles are useless if they are not well designed or adhered to, regardless of how well-crafted trading strategies and technical analysis are.Although each person is different, I honestly do not believe that there is a solution to the fundamental strategy other than learning or mastering it through long-term practice or entrusting your own technical analysis or trading strategy to a machine, computer, or algorithm.The success rate is higher when fewer human emotions are involved, but how can you trade without emotions when your money is at stake?It's tough.If you want to learn principle trading well, one suggestion is to begin trading with a small amount that you are willing to lose.It doesn't matter if you lose it; as a result, you won't be as sympathetic and can gradually increase a seed.
We must transform into traders who prioritize risks (losses) over rewards (returns) at all times.Please remember this word.For instance, instead of thinking, "Oh, I want to win 10 million dollars quickly," think, "I may lose 10 million dollars" in a trading setup that costs 10 million dollars if you win and 10 million dollars if you lose.You need to approach trading with the attitude, "Let's be prepared."The seed and bowl will naturally match as a result of this.
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