Getting technical
Almost all traders have taken part on the quest to find the holy grail of trading systems. The thinking goes, ‘If I could just find the right system I will have cracked it’. Hours are then spent back testing through the charts and then, often switching between systems on the perpetual hunt for the ‘perfect system’. Technical analysis is simply the means by which successful traders define and limit their risk in a sensible way. It seems best to do this once the fundamentals are in place.
In short, my view is that technical analysis is a great servant, but a terrible master. Ideally, in my opinion, you want to have the fundamentals and the technicals combine before you take a trade
Have you been guilty of trying to find the ‘Holy Grail’ of technical systems? If so, what did you do?
Or did you find the holy grail? Well, be a darling and leave it in the comments 😉