Crypto asset trader Altcoin Pepe summarized his thoughts on seven years of technical analysis on his personal Twitter account. He said that he has been engaged in trading for seven years, and after so many years of market experience, he is now confident in his trading methods. Although some people learn faster, one thing successful people will not do is give up.
He then sent nine consecutive tweets, summarizing his thoughts on seven years of trading with technical analysis, emphasizing the principle of keeping technical analysis indicators simple, and that there is no magical trading system or absolutely accurate predictions, but that these are purely matters of probability.
1. There is no absolute, only probability
No matter how confident you are, thinking and talking in an absolute way is a sure path to poverty. You will not survive in this game (trading) for long with this mentality.
In trading, you should assume that you are always wrong and take steps to manage your risk accordingly.
2. There is no magic trading system
There is a trading system that works for you, and you can use whatever you want to build a profitable trading system.
Whether it is simple price action, trading indicators or order flow, you just need to choose one or some of them as a basis to create some trading principles that you can follow.
3. There is no magic technical indicator
The advantage lies in how you use trading indicators. Take the Moving Average (MA) as an example. There are many ways to make money in the market using moving averages. Some technical indicators are more effective than others. This requires using your imagination.
4. Simple is often best
If you focus on or learn too many things (technical indicators, trading strategies or methods, etc.), you may miss opportunities because you think too much.
Therefore, simple is often best. You need to create a trading system that is easy to follow and manage.
5. Buy fear, sell greed
You buy when others are fearful and sell when others are greedy.
This sounds simple, but in most cases the opposite is true. Most people will be ecstatic when prices go up and lament when prices go down.
Low Price = Opportunity
High price = realize this opportunity
Before you take profit, it is not your money.
6. Plan your trades, trade your plan
Changing from one trading system to another is not the way you should trade. If you do this, you should not be trading.
You need to go back to square one and rethink your trading strategy. A good trader is consistent in both analysis and execution.
7. Risk Management
Be aware that risk management can be the main factor that makes it difficult for you to make a profit.
Many traders have good strategies but flawed risk management systems, and making some small adjustments can lead to more positive trading results.
8. Patience is essential
Being impatient is like being stuck in a quagmire, making you struggle endlessly. Therefore, patience or endurance is an indispensable quality in trading.
Instead of chasing the price, it is better to wait for the price to reach your pre-set level and execute only when the target price is reached, keeping the funds in hand at other times.
If you lack patience, try high frequency trading! There will be less noise.
If you are struggling to be patient, try trading the High Tight Flag (HTF) chart pattern where there is less noise.
9. Offense wins games, defense wins championships
Trading is a game, and protecting your capital allows you to continue playing.
Cut losing positions quickly. When a trade doesn't go as expected, you should cut your position without hesitation, focus on your defense, and the profits will follow.
As Ferguson, the former manager of the Premier League team Manchester United, has always said, "Attack can help the team win, but defense can help the team win the championship."
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