I know that this question haunts the mind of thousands of investors/traders who make money and also who lose money........Well, lets analyse......
During the last bull run, how many times we have heard that India is on a robust growth track? Probably day in and day out..........3 months later, how many people have downgraded India......Probably all.......Come on.......We are talking in months!!!!!! These days people change the economy everyday.......You would hear the media saying "Today, markets crashed because Lehman sounded negative......Next day, they say....Markets recovered sharply even though inflation was bad.....Oh no!!! Oil has corrected and thats why markets recovered.......Some day, they would say......Indian markets crashed because FII's sold in Taiwan market......Sounds funny, aren't they?
These days analysts change economy of a country daily as if its a game of table tennis........And people try to relate every bit of news with market direction.......And thats where the mistake is made.
Then why do markets change direction? The answer is technicals. Buying happens when the script is near support or above resistance.....News might support the cause when technicals are favorable.......But then, as a technical analyst, you can also get wrong when you listen to your heart and emotions. You tend to forget the basic maths and stats and get carried away.......
But without technical knowledge, trades can be blunder......You have to put strict stop losses in the system and trade accordingly.......
During the last bull run, how many times we have heard that India is on a robust growth track? Probably day in and day out..........3 months later, how many people have downgraded India......Probably all.......Come on.......We are talking in months!!!!!! These days people change the economy everyday.......You would hear the media saying "Today, markets crashed because Lehman sounded negative......Next day, they say....Markets recovered sharply even though inflation was bad.....Oh no!!! Oil has corrected and thats why markets recovered.......Some day, they would say......Indian markets crashed because FII's sold in Taiwan market......Sounds funny, aren't they?
These days analysts change economy of a country daily as if its a game of table tennis........And people try to relate every bit of news with market direction.......And thats where the mistake is made.
Then why do markets change direction? The answer is technicals. Buying happens when the script is near support or above resistance.....News might support the cause when technicals are favorable.......But then, as a technical analyst, you can also get wrong when you listen to your heart and emotions. You tend to forget the basic maths and stats and get carried away.......
But without technical knowledge, trades can be blunder......You have to put strict stop losses in the system and trade accordingly.......
1 comment:
Infact Techinacal Analysis matter more than people ever imagine.
& here's the amazing part - it matters for both short term traders & long term investors(!); more so for the later.
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