Recently I was thinking back at the times when I have started, now it seems so obvious but I don’t know why authors don’t talk about it.
Quite simple, we suck at trading, and we suck at analising markets. And the big mistake is that we try to learn both at the same time. People often misundertands these two concepts thinking as one, but believe me they are both separate discuplines. Even today (now I am making some money with FX) it is hard for me to do both.
Just think about it.
…What?
quite right!!
YOu have to decide what you are as a trader, fundamentalist or technocrate. Then make up your trading plan in which you describe your strategy, risk management and money mangement till an detailed extend that it is a roadmap for your trading. Than trade the signals according to your strategy, with the risk according to your risk management with a positions size according to your moneymanagement. All without emotions!! Because everyone knows this is a number game and your tradingplan just give you an edge, taking a longer period in consideration.
I suck at thinking and typing. I can’t do both… I need a mentor! So bad…
I love lamp
We’re talking about lamps jake. We suck at lamps
Analysing is the work you do to decide wich side of the market you will take. Trading is just the action made based on the prior decision.
Absolutely agree. Many people though they can master both of those, but I don’t think it is that easy. I am a full technical trader, so I just avoid for entering speculation price during Fundamental Impact. But anyway to me, if you do a good technical analysis and know how to avoid Fundamental Impact, it should be good enough for you.
it’s ok friend. becuase with each analysis .it can be wrong. because we can’t know 100% about market. it can get 100% accurate
Yeah, nobody will have 100% accurate in the market. But you must have 100% discipline and with 100% obey to your very own Risk and Money Management Rules. In live trading, 20% rely on a strategy, but 80% rely on the trader himself. I have seen a lot of trader fail, not because the strategy doesn’t work, it is because the trader himself.
I think that analysis and trading are intricately intertwined, and it’s impossible to do one well without doing the other. For me, I like to start by doing long term fundamental analysis to determine long term probable directionality, then I use a combination of technical and sentiment analysis to determine good entry points and short-term directionality. I tend to hold trades open for days or weeks though, so not sure if the same process would be beneficial for scalpers or intraday traders.