#TradingAnalysis101 #FollowTheLeadTrader
Effective trading analysis combines multiple factors to improve decision-making. Technical analysis helps traders identify trends, support/resistance levels, and momentum using tools like candlestick patterns, moving averages, and RSI. Fundamental analysis focuses on economic indicators, company earnings, and news events that impact prices. Risk management is crucial—setting stop-loss and take-profit levels prevents large losses. A good trading plan includes entry/exit strategies, position sizing, and risk-reward ratios. Market psychology also plays a role, as fear and greed often lead to irrational decisions. Backtesting strategies on historical data helps refine approaches before using real capital. Finally, continuous learning and adapting to market conditions increase the chances of long-term success in trading.