Mistakes are common and anybody and everybody are bound to make mistakes. Sometimes it might be such silly ones that we regret them after we suffer the heavy blow at the end. This is very much common in the trading field. This is a field that is all about money and only money and the major thing every trader should understand and realise that once the deposits are made, the money that has been spent for this purpose is never seen again and the traders absolutely have no clue about where it goes, how it is getting utilised etc… So in such cases don’t you think it is important and essential for a trader to do a thorough research and study and then try getting into the trading field? Yes, this is very important and it goes without saying especially for those who are new to this field.
Come, let`s learn more and take a look at how generally traders commit mistakes and the probable situations in which they get trapped.
The important attraction here in this field is the money that is paid back to the traders in the name of returns and profits. Generally, traders fall flat for these numbers and this is taken as an advantage by some of the fraudulent systems who find it easy to attract and allure innocent traders with huge and big numbers. Now without taking note of whether it is a good and a reliable system, traders plunge into decisions and lose all their money for nothing but just losses.
Secondly, it is important to know about the brokers who are associated with each system. Like how we have reliable and genuine brokers following the set rules of trading, we also have fraudulent brokers or agents who follow their own rules of trading. these brokers are generally seen attached with fraudulent systems and their only aim is to help the system make some money out of which they are paid a percentage and absolutely no thought of helping the traders but only cheating them.
The grave truth about this field is that many people lose confidence here mainly because of the existence of such fraudulent systems and they assume the whole market to be the same. It is only when they step a foot here would they really understand its real and original face. So confidently take a step and see what your luck is in this field.
There is no direct “yes” or “no” answer to this big question. Every type of trading would benefit a little from the use of technical analysis. But if there was one method of technical analysis that was really accurate then every trader would be able to become millionaires in a short time. The thing about technical analysis is that the parameters might remain the same but the way the parameters are used and the number of such technical indicators used to take a decision would change.
Crypto trading appears complicated but it is known to be one of the most profitable areas in the recent times. The volatility of a crypto currency market is something that almost every trader knows about. Some choose to invest long-term and use the crypto currencies for other online transactions. And some choose crypto trading bots like Ethereum Code in order to give a great start to their crypto currency trading journey. If you have never used a crypto trading bot before then check this out to read a review about Ethereum Code.
The importance of technical analysis
Finding the support and resistance levels is something that nearly all the traders would do when they choose crypto trading. This would help them set the lowest price the currency can reach and thus the maximum loss possible. Much like the other markets the crypto market too works in cycles. There are ups and downs that sometimes cannot be predicted. But the direction of change can often be found. The fundamental analysis might not be too relevant when it comes to crypto trading as it would be with stocks. So most traders rely on technical analysis.
The market doesn’t always progress as the indicators indicate. The influential factors involve real people and trading bots as well, besides the governments and others. Though crypto trading would not be as strongly influenced by the government decisions or political changes as with the stock market, there are still minor effects felt. And with the growing talks about countries imposing rules on crypto trading the situation changes further. So even with those crypto currencies that are identified to be strongly moving in the upward direction, some sudden changes might change the traders’ opinions. This might lead to a few traders taking hasty decisions which in turn might impact the price of not just that crypto currency but others as well. So wise trader would know when and where to use technical analysis.