Why Some Missed Out in Technical Analysis Goodies

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Like I said before in my previous article, many failed to train on technical analysis tools due to some arguments that as far as I am concern, are baseless. I have gathered eight (8) of such myths, and in simple terms will debunk them one by one. With a learning mind, kindly follow me into today’s discussion.
Some of the myths are;

1. Technical analysis is only for short-term trading or day trading.

It is a common myth that technical analysis is only appropriate for short-term and computer-driven trading like day trading and high-frequency trades. Please understand that technical analysis existed and was practiced before computers were common, and some of the pioneers in technical analysis were long-term investors and traders, not day traders. Technical analysis is used by traders on all time frames, from 1-minute charts to weekly, monthly, annually and quarterly charts.

2. Only individual traders use technical analysis.

While individuals do use technical analysis, may I tell you that hedge funds, market makers and investment banks also make good use of technical analysis as well, in fact, most will never trade without first understanding the trend of their equities of choice. May I also inform you, that Investment banks have dedicated trading teams that use technical analysis in guiding their investment various decisions. In other words, high-frequency trading, which encompasses a significant amount of the trading volume on the stock exchanges, is heavily dependent on technical concepts.

Meanwhile, it is no more news that these sets of people chiefly dictates market direction while individual investors, due to their low portfolios sizes swim within their decisions for timely profit. Should you therefore attempt one sided analysis (either technical analysis or fundamental) you stand a chance of reducing your winning trades.

 For Technical Analysis Trainings and Installation of Technical Tools for Single Users (individual) or Groups (offices), contact: Jeariogbe Tunde Segun (Independent Equities Market Analyst) on 08098865598. Safe Trade.

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