Today, I want to talk about a common misconception that many traders have: that technical analysis is everything.
On August 17, 2023 once more big bold statement "Technical analysis is Bullshit" proven.
Technical analysis is a useful tool for crypto trading, but it is not the only one. Technical analysis involves using mathematical indicators and chart patterns to analyze the past and present price movements of crypto assets, and to predict future trends and signals.
However, technical analysis is not a magic bullet that can guarantee success in every trade. Technical analysis has its limitations and challenges, such as:
Technical analysis is based on historical data, which may not always reflect the current or future market conditions. Crypto markets are dynamic and influenced by many factors (which is more stronger proofed by time) , such as news, events, regulations, sentiment, etc. These factors can cause sudden and unexpected price changes that technical analysis never be able to capture or anticipate.
Technical analysis is subjective and open to interpretation. Different traders may use different indicators, time frames, chart types, and methods to analyze the same data. They may also have different risk appetites, trading styles, and goals. Therefore, technical analysis can lead to different conclusions and recommendations for different traders.
Technical analysis is prone to human error and bias. Traders may make mistakes in applying technical analysis tools or techniques, or they may ignore or overlook important information or signals. Traders may also be influenced by their emotions, such as fear, greed, hope, or regret, which can affect their judgment and decision making.
Therefore, technical analysis is not everything. It is only one part of a comprehensive trading strategy that should also include fundamental analysis, risk management, portfolio diversification, and self-discipline. Fundamental analysis involves evaluating the intrinsic value and potential of a crypto asset based on its underlying technology, innovation, adoption, team, roadmap, etc. Risk management involves setting realistic goals, using stop-losses and take-profits, managing your capital wisely, and being prepared for volatility and losses. Portfolio diversification involves spreading your investments across different crypto assets, sectors, and strategies to reduce your exposure to market risks. Self-discipline involves following your trading plan consistently, avoiding overtrading or FOMO (fear of missing out), learning from your mistakes, and improving your skills and knowledge.
So remember: when you think technical analysis is everything, you know nothing (sometimes it's just Bullshit). Technical analysis is a tool for crypto trading, but it is not the only one. You need to combine it with other tools and techniques to achieve consistent results and success in the crypto market. Thank you for reading! cheers ☕
