Dilemma of using technical analysis

Dilemma We already saw technical analysis means study of stock prices and how they behave on supply and on demand. Using this information to make money out of the market while keeping losses at its minimum.   Using technical analysis in your active trading life is formula of finding profitable opportunities. As I already stated, trading is game of finding right opportunity at right time. Trader’s basic goal is to analyze price trend and then forecast its future price in given horizon for the purpose of buying or selling it to make cash profit out of it. Technical analysis is a most important tool for active traders and it helps each and every second to thousands of traders all over the world to make their decisions. But it is as important as to a passive investors also.   There is always dilemma of using technical analysis for investing. But in my view it will work same for investors as it works for traders, only difference is there holding period. Because traders hold stocks for short period of time ranging from minutes to days while most major investors hold stocks for months to forever.   Technically speaking, there is thin line between trader and investor and because an active traders can be passive investor in any stock depending on major trend or an investors can become trader if its target get achieved in short period of time. In my view, it is not important that you are trader or investors, as long as you are managing your risk right and making money out of the market. Dilemma of using technical analysis Most amateurs stick to traders or investors dilemma and forget about main goal of trading or investing which is making money.   Technical analysis can be used for 1 hour trade as well as 10 year long term investment. For traders, it help to find best opportunities for short term right entry and exit to make quick bucks. While investors can analyze primary trend to enter at bottom and almost exit at top and also can use pull back to add more and extreme highs to book partial profit out of investment. Sudden crash that falter primary trend of stock can be identified with the help of technical analysis and help the investors to get out of the stock. Technical analysis is a tool to always help investors to identify these situation and can be actively used by passive investors to get help in their investments. Technical analysis also can help in diversifying your investment as it finds better and better opportunities in market and help you to rotate or allocate your capital to several stocks or sectors to beat the market with highest gains.   Same can be true for active traders finding 1 hour highly successful trade and pulling money out of the market. So at the end, I can suggest there is no dilemma in using technical analysis in trading or investment horizons as long as you are clear about your goals.

The Author

Pramod Baviskar

Professional Market Trader And Owner Of Dalal Street Winners Advisory And Coaching Services. Working Since 2007 And Online Presence Since 2010. We Provide Highly Accurate And Professional 1 Entry And 1 Exit Future, Option, Commodity, Currency And Intraday Stock Tips On Whatsapp With Live Support And Follow Up.
COPYRIGHT © 2009-2018. Pramod Baviskar. Dalal street winners advisory and coaching services. FAQ | Disclaimer | Privacy Policy

This website is best viewed using Microsoft Internet Explorer 9 or higher, and/or latest version of Google Chrome and Mozila Firefox browsers.