What mistakes do you often make in Technical Analysis?

1 Do not stop loss
2 Overtrading
3 Retaliatory Trading
4 Perhaps stubbornly sticking to one's own opinion
5 Ignore Extreme Market Conditions
6 Forgetting Technical Analysis is a game of probability.
7 Blindly follow other traders

1. Stop-loss is very important. Our trading strategy has failure points, and this point will inevitably force one to take a loss and admit that the strategy is wrong. If this mindset is not applied to trading, it will be difficult to achieve ideal investment performance in the long term.

2. Making money relies on waiting for opportunities, not trading. One should not trade for the sake of trading, and there is no need to trade all the time. Under specific conditions or environments, doing nothing is the best performance.

3. Many examples exist where individuals attempt to immediately recover from significant losses. Many members or traders behave this way, whether they have lost or made profits, they immediately come back to me asking for trades or directions, engaging in revenge trading.

4. Learn to change your own thoughts, the greatest constant is change. Look at yourself from the opposite perspective, every day, assume that you are wrong, and discover your weaknesses.

5. Sometimes the quality of predictions from Technical Analysis can become less reliable, such as in the case of "black swan events," or other extreme market conditions that are largely driven by emotions and public psychology. Ultimately, the market is driven by supply and demand, and can sometimes become extremely imbalanced in one direction.

6. Technical Analysis is not absolute, but merely a probability. This means that regardless of the technical methods your strategy is based on, there is no guarantee that the market will operate as you expect. Perhaps your analysis indicates a high likelihood that the market will rise or fall, but that is not necessarily going to happen.

7. In fact, a strategy that is very effective for one trader may seem completely unfeasible for another. There are countless ways to profit from the market. You just need to find a trading method that suits your personality traits and trading style.
Trading based on others' analysis may occasionally succeed. However, if you simply follow other traders blindly without understanding the fundamentals, then this approach cannot last long. Of course, this does not mean that one should not follow others and learn from them. The key is whether you agree with this trading philosophy and whether it fits your trading system. Even experienced and reputable traders should not be followed blindly.

In fact, when participating in trading, each of us is thinking and summarizing issues. Some people think about it simply, some think deeply, some change later, and some do not change at all. However, the results are two extremes. Making money in the long term is not that easy. For most people, making money requires wisdom and physical effort, which is why many cannot persist.

We often talk about the weaknesses of human nature, the flaws of character, and the shortcomings of trading habits, all in order to change.

Pain is the best teacher, preaching is the most poisonous hatred. We exhaust ourselves trying to shove our insights onto others, forgetting that everyone awakens at different times.

Participate in trading with a light heart and execute your plans without hesitation. Ensure that you can accept the best or worst outcomes at the moment of placing an order, and do not be at a loss after the order is placed. If you treat trading as gambling, it would be better to divide your capital into 10 parts and go all in with 1 part each time.

Some people are overjoyed when they encounter unrealized gains, but dejected when they face unrealized losses.
Some people can't hold onto their profits but can endure losses until they explode.
Some people go crazy and increase their positions when they encounter floating losses, ultimately getting themselves killed in just a few moves. I'm telling you, adding to your position with floating profits is much better than adding to your position with floating losses; use the pyramid trading method.
Some people have light positions when they make money and heavy positions when they lose, needing many trades to recover.
Some people, after doubling their profits, do not understand how to withdraw their funds and continue to roll their latest capital like a snowball, with no plan at all.

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