Hi, everyone👋.
Do you like surfing or guiding surfers?
In this article, I will talk about how analysis differs from trading. A good analyst is not necessarily a good trader📉. Do you know what the point is❗️❓
The point is that analysts talk about all aspects, so they always tell the truth and explain what really happens on the market, but the traders ride the waves. Financial markets include high and low waves, so if a trader makes a mistake in measuring its depth, speed, and height may drown in the sea. If you are a trader, don’t be proud of yourself because the financial market sea is very cruel or a beast.
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There are four trading keys in financial markets:
These keys are like four legs of a chair🪑 which should be sat on carefully and calmly. Although by removing one of the legs, it’s possible to sit on the chair, safety has to be considered.
I’ll explain all the trading keys in the market in other posts later, but for now, let me dig into the differences between Analysis📈 and Trading💰.
What is considered in the analysis are the price targets in both rising🟢 and falling🔴 markets, the probability of its occurrence and non-occurrence, and the necessary conditions for both.
Considering the subtlety of an analyst's words and the mentality of the people studying - who are mainly looking for confirmation of their position - generally, the analyst will always be right unless he has declared only one direction decisively, which is not an analysis, but a signal and prediction.
Declaring an upward↗️ or downward↘️ trend in only one direction is not an analysis but a prediction. It’s noted that any prediction can be wrong. But in the comprehensive analysis of both sides, the necessary conditions for their occurrence and their probability are stated, so whatever happens, the analyst is right, and you will hear the famous saying "as predicted."
🔷 A successful trader can take the following steps:
Comprehensive analysis of the market situation in which he wants to trade:
The technical analysis must be prepared before opening a trade position. A wrong analysis does not always lead to a wrong trade, and vice versa, a correct analysis does not lead to a correct trade because you have to see whether the position trigger is activated or not.
Find useful trading strategies to achieve profitable trading:
A trading strategy can be a system that includes a combination of different indicators and oscillators, which can finally indicate the entry and exit points as well as profit and stop loss while trading. This system makes you behave like a robot; after understanding and analyzing the market, you’ll wait for the entry and exit points to appear. Trusting this trading strategy is one of the critical keys to successful trading.
All the points mentioned so far are related to the technical analysis aspects; otherwise, in the Fundamental field, a daily checklist of various factors affecting the market is needed, which is vital for Fundamental analysis.
Find your own timeframe:
Chart analysis and trading can be viewed from the 1-second time frame(short-term) to several years(long-term), but every trader should have his own time frame based on his trading strategy.
The time frame is important because:
Studying market analysis to identify market trends, the state of market movement waves, and daily, weekly, and monthly support and resistance zones.
All the above must be done before entering the market, and the only thing done after entering the market is the last step—changing the exit point based on the variable stop loss to increase profit.
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🔷 Conclusion:
According to the explanations given, it can be understood that analysis and trading have a significant differences. It should be noted that every wrong analysis published on social networks does not indicate that the analyst does not trade well and vice versa. So, to profit from the financial markets, you must be trained in the first step. Become an analyst and then trade. For this, you have to go step by step, don't be greedy, don't rush, so that you can stay in the financial markets and earn profit every day until you get a continuous profit one day.
Do you like surfing or guiding surfers?
In this article, I will talk about how analysis differs from trading. A good analyst is not necessarily a good trader📉. Do you know what the point is❗️❓
The point is that analysts talk about all aspects, so they always tell the truth and explain what really happens on the market, but the traders ride the waves. Financial markets include high and low waves, so if a trader makes a mistake in measuring its depth, speed, and height may drown in the sea. If you are a trader, don’t be proud of yourself because the financial market sea is very cruel or a beast.
—------------------------------------------------------------------------------------------------------------------
There are four trading keys in financial markets:
- Trading Strategy
- Capital Management
- Market Psychology
- Trader Psychology
These keys are like four legs of a chair🪑 which should be sat on carefully and calmly. Although by removing one of the legs, it’s possible to sit on the chair, safety has to be considered.
I’ll explain all the trading keys in the market in other posts later, but for now, let me dig into the differences between Analysis📈 and Trading💰.
What is considered in the analysis are the price targets in both rising🟢 and falling🔴 markets, the probability of its occurrence and non-occurrence, and the necessary conditions for both.
Considering the subtlety of an analyst's words and the mentality of the people studying - who are mainly looking for confirmation of their position - generally, the analyst will always be right unless he has declared only one direction decisively, which is not an analysis, but a signal and prediction.
Declaring an upward↗️ or downward↘️ trend in only one direction is not an analysis but a prediction. It’s noted that any prediction can be wrong. But in the comprehensive analysis of both sides, the necessary conditions for their occurrence and their probability are stated, so whatever happens, the analyst is right, and you will hear the famous saying "as predicted."
🔷 A successful trader can take the following steps:
Comprehensive analysis of the market situation in which he wants to trade:
The technical analysis must be prepared before opening a trade position. A wrong analysis does not always lead to a wrong trade, and vice versa, a correct analysis does not lead to a correct trade because you have to see whether the position trigger is activated or not.
Find useful trading strategies to achieve profitable trading:
A trading strategy can be a system that includes a combination of different indicators and oscillators, which can finally indicate the entry and exit points as well as profit and stop loss while trading. This system makes you behave like a robot; after understanding and analyzing the market, you’ll wait for the entry and exit points to appear. Trusting this trading strategy is one of the critical keys to successful trading.
All the points mentioned so far are related to the technical analysis aspects; otherwise, in the Fundamental field, a daily checklist of various factors affecting the market is needed, which is vital for Fundamental analysis.
Find your own timeframe:
Chart analysis and trading can be viewed from the 1-second time frame(short-term) to several years(long-term), but every trader should have his own time frame based on his trading strategy.
The time frame is important because:
- The trading strategy should help traders find the entry and exit signals in the same time frame.
- The Stop Loss(SL) should be determined based on entry points in the same time frame.
- The time required to reach profitability is estimated based on the same time frame. You can't analyze on a daily time frame and expect to get a very good profit immediately after entering the position.
Studying market analysis to identify market trends, the state of market movement waves, and daily, weekly, and monthly support and resistance zones.
- Determining the Entry Points(EP) based on the strategy
- Determining the Stop Loss(SL) based on the strategy
- Determining the Take Profits(TP) based on the strategy
All the above must be done before entering the market, and the only thing done after entering the market is the last step—changing the exit point based on the variable stop loss to increase profit.
—------------------------------------------------------------------------------------------------------------------
🔷 Conclusion:
According to the explanations given, it can be understood that analysis and trading have a significant differences. It should be noted that every wrong analysis published on social networks does not indicate that the analyst does not trade well and vice versa. So, to profit from the financial markets, you must be trained in the first step. Become an analyst and then trade. For this, you have to go step by step, don't be greedy, don't rush, so that you can stay in the financial markets and earn profit every day until you get a continuous profit one day.
Comment:
If you know another difference between a trader and an analyst, please comment on this post.🙏🌹
