Part7

🔹 Common Mistakes in Technical Analysis – And How to Avoid Them

Even with the best tools, traders can make poor decisions if they fall into common traps. Let’s highlight the mistakes that many beginners make — so you can avoid them early.

❌ 1. Relying on One Tool Alone

Using only RSI or just trendlines can give false signals.
✅ Always combine tools for confirmation.

❌ 2. Forcing Patterns

Some traders try too hard to “see” a trend or setup that isn’t really there.
✅ Be objective. If it’s not clear, don’t trade.

❌ 3. Ignoring Timeframes

A signal on the 5-min chart may be weak compared to the 1-hour chart.
✅ Use multiple timeframes to confirm your analysis.

❌ 4. No Risk Management

Even the best analysis fails sometimes.
✅ Always use a stop-loss and never risk more than 1–2% per trade.

❌ 5. Revenge Trading

Losing a trade can be emotional. But jumping back in to “recover” usually leads to more losses.
✅ Stay disciplined. Stick to your plan.

📌 This concludes Lesson 2: Technical Analysis for Beginners.
Tomorrow at 11:00 PM GMT, we begin Lesson 3.

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