The use of technical indicators for good decision making in trading.

in hive-175254 •  2 months ago 

Greetings to all readers of this great platform, for many people the world of trading is considered as something dangerous where you can lose your money, for others the reality is very different, because taking the right decisions you can multiply your capital, now well, to make these decisions is necessary to study the market and the use of technical indicators to help you make the best decision according to the strategy you apply for trading.

Screenshot taken at: PixaBay

Many of the readers who are not familiar with trading, will wonder what are technical indicators, they can be considered as mathematical or statistical formulas that help us to determine with expressions the trend of a market, ie where the market price is heading and possible changes in market trends, either from a bull market (when the asset gains value in the market) to a bear market (when the currency loses value in the market).

By being able to prevent these trend changes, or rather to have clear knowledge about what is happening in the market, it is possible to make good decisions that lead us to generate money, these decisions manage to increase our capital, so we can generate more investments and get more profits, being the perfect market to multiply our resources, is it easy? No, it is not, it is a world that requires enough time and studies to generate profits.

Screenshot taken at: RobiniaSwap

Now, to use the technical indicators the process is simple, as reflected in the image above, in this particular case I use Binance, entering the menu at the top where it says "Technical Indicators" where a menu will be displayed with a series of mathematical and statistical indicators, which help us to make decisions as I mentioned at the beginning.

It is there where we must select the ones we want to use, according to our knowledge and strategy that we have developed for trading, and there are a lot of possibilities to do so, which is why we must study this market thoroughly and understand it as best as possible before making any investment that can generate some economic loss.

In spite of what many people think about trading, that it is dangerous and that it only makes you lose money, those of us who are already in it know that this is false, and that it happens to people who do not use their time to understand the market, by investing time, knowledge and a little resources we can generate great profits in the market, which leads us to the constant increase of our capital and the search of the financial freedom that we long for, thank you for reading my article.

All the images used by the Author @Chucho27 are Public Domain, in each one of them you can find the source of the image.

The image of the Banner at the bottom, is in the public domain obtained from: PixaBay

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Hello @chucho27, manage technical indicators for trading is essential, because not knowing about them for sure your investment will increase the risk of loss, although statistically speaking in the market always have losses which are decreased if you use strategies focused on technical indicators, thanks for socializing this information.

Hello @chucho27
Statistics speak that more than 50% of people who are engaged in trading lose money, it is the reality. But, to a large extent it is due to ignorance, for not having a strategy, that is the main factor that determines these unfavorable figures.
With a good technique the data can be favorable, it does not mean that you will not lose, because as in any business there are always losses, but these in this case must be self-limited through risk control.

The fundamental analysis and the technical analysis are the two fundamental aspects of study that can lead us to be successful in the world of trading, this requires learning, understanding that in this environment money is earned not based on "luck" but based on knowledge, to the hard work of analyzing in detail the projects in which we want to invest, thank you very much for such valuable advice @chucho27

Hello @chucho27

I agree with you, no doubt to make balanced decisions, the idea is to study the market and the use of technical indicators to help you make the best decision, that is the key otherwise entering by fundamental speculations is a serious mistake.

Best regards, be well.

The wonderful world of tranding, a good friend and mentor always tells me, tranding is not about maximising profits, true tranding is actually about minimising your losses. In order to understand that we have to have high mental power and psychology to face the challenge of controlling emotions, and the best way is to educate ourselves very well about tranding and all the tools it offers to minimize losses.

Greetings friend @chucho27, although I am not an expert trader I certainly agree on the importance of the use of indicators to make a trade with the lowest possible risk, I believe that otherwise it would be more luck than a well done technical study that would determine the success of an investment.

Technical analysis is very important part of the trading. As we cannot predict the future but we can make some small price prediction so that we can make small profit.

Currently many bots are working which will help you in doing trading easily. They are also not 100% perfect and sure.

Great article @chucho27
I also think that the udnerstanding of such indicators is important of people are investing for long term. If you understand why something is happening it will help to go to conclusions.