Post
Topic
Board Trading Discussion
Re: Trading psychology and TA
by
Xampeuu
on 20/06/2024, 07:29:46 UTC
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.
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.

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.
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