I have been trading stocks and cryptos since last 3 years, purely based on technical analysis. When I started, I was completely lost like most new traders and struggled to try and decide what might work and what won’t.
Over time, I realised that technical analysis, fundamental analysis, techno-funda analysis, indicators, strategies, price patterns, TA tools etc, can only help you so much. To be a successful trader, you need to master risk management and accept the fact that making money in markets is all about probabilities. Nothing, absolutely nothing, can guarantee that market will always behave as per your (or anybody else’) analysis.
To make money in markets, I think one needs the following 3 things.
- Risk Management
- never risk more than 2% of your capital on a single trade (newbies should stick with 1%)
- be ruthless in cutting off losing trades
- always stick with your stop-losses no matter what
- win big, lose small
- avoid going “all-in” on a trade despite having extremely high confidence on a setup
- Discipline
- sticking with the view till it gets invalidated
- getting out of trade as soon as view is proven wrong
- avoid FOMO situations
- Trading Edge
- increase the probabilities of a trade working out in your favour using TA, FA, combination or anything else
There are numerous books and blogs on the first two topics and I’ll also try to share my experiences related to these topics on this blog. However, focus of this blog would be mainly on the “trading edge” part. For me, it’s a combination of price action (chart patterns, volume analysis) and Elliott Waves.
I plan to share my analysis of stocks, cryptos and forex on this blog that I find interesting. In the process, I’ll get to learn from feedback and refine my methods. Hopefully readers of this blog can also learn a thing or two.
Nothing on this blog is a recommendation for buying or selling a stock, cryptocurrency, commodity or forex. This blog is purely intended for educational purpose.
Happy trading!