About Barbara Rockefeller, perhaps not a strange name to you. She is the author of many valuable books for traders, including How to Invest International, CNBC 24/7 — Trading Around the Clock & Around the World, The Global Trader, and especially 2 floating books. most famous languages: Technical Analysis for Dummies and The Foreign Exchange Matrix. Here are 17 of her tips for traders, invite you to discuss:


  1. Don't let the complexity scare you off. Technical analysis is extremely simple, you only need a chart showing the price of an asset over time. And the tools you use in that space are the indicators. You learned about school arithmetic and the arithmetic formulas behind the indicators are very simple, it's simple addition, subtraction, multiplication, and division. In short, Technical Analysis can be surprisingly simple. You can make it more complicated, but you don't have to - keep it as simple as possible.
  2. The core concept of technical analysis is a trend. If your indicators tell you the asset is trending up, buy it. When it stops increasing, sell it. If you don't know what's going on, don't trade. Don't fall into the value trap - that the high-quality asset will return to its uptrend after it collapses. It can happen, but you may have to wait a long time to see it happen. In the meantime, you're missing out on your compounding opportunities.
  3. All indicators are active. Indicators are effective in identifying both buying opportunities and warning when you should exit or sell. The world of technical analysis has produced dozens of indicators and you cannot use all of them. There are no best indicators, but there are a few that are best for you. The best indicators are the ones you understand and are comfortable with. Once you've identified them, use them consistently.
  4. Every indicator has its own weaknesses. Please accept that all trades can lead to losses. Losses can arise due to the market going down or acting in a weird and unusual way, while your indicators work just fine under normal conditions. This is a matter of luck and it does not mean your indicator is faulty. Likewise, every indicator has the potential to lead you to huge profitable trades. It's still normal market behavior and doesn't make sense that the indicators you use are miraculous and transcendent.
  5. Don't trade if you can't afford to lose. Always admit you can lose money and you must control them carefully to preserve capital. The biggest cause of losses is not the inactive indicators; the lack of acknowledgment of potentially false indicators is the main reason. Technical analysis is for making money, not proving your indicators correct. You cannot make money if you cannot control frequent losses. The tool to manage losses is a stop-loss order. No trader succeeds in the long run without using a stop loss.
  6. Please understand the crowd psychology behind the indicator. Indicators measure whether an asset is trending or not, how strong it is, and when it is exhausted. No single indicator measures everything, so understand the aspect of crowd sentiment that technical indicators bring.
  7. Please reassess the analysis on a regular basis. Please review what you analyzed. Don't let prejudice confirm, also known as delusions, distort your vision. When you get wrong about what happened on the chart, go back and find what you missed.
  8. Use at least two indicators. Indicators will be of great help if you use them properly and properly; For example, you only need to add the 200-day moving average on the Dow or the S&P 500, it will help you avoid a downturn or a bear market. In addition, add 1 momentum indicator to measure the strength of the trend.
  9. You will never be right 100% of the time, so signal validation is a must. However, avoid analysis paralysis that comes from asking for too many confirmations or signals from too many indicators. Use indicators that work best for you that do not overlap in properties (eg 2 momentum indicators).
  10. Use multiple timeframes for validation. When you have the same buy/sell signal appearing in all 3 timeframes H4, D1, and W1, you can be confident that the indicator is telling you the truth. Of course, you can hardly achieve validation on all timeframes, but the probability increases as more timeframes confirm. When in doubt, switch to the week and day timeframes - seeing the big picture helps.
  11. Ignore perspectives like "market timing is not working". The people who recommend this are the people who can't do it. Timing is essential and it takes practice to get there. However, market timing will be different from market forecasting and you should keep this in mind.
  12. Don't trade for fun or excitement. The purpose of trading is to make money. If you are trading for fun, trading in excitement, or to prove some philosophical & political point of view, you will most likely lose money. For entertainment, go to the movies. For excitement, buy a motorbike or ride a roller coaster. To give a political opinion, write on Facebook.
  13. Use fundamental analysis to select assets, not to trade them. You are free to choose assets you like on the basis of fundamental analysis, but use technical analysis to trade them.
  14. Create a transaction plan and stick to it. Indicators are sometimes wrong and make you lose money. Make up for the shortcomings of indicators by imposing strict risk management and controls. Review your trading history on a regular basis and don't deceive yourself about your performance. Checking and reevaluating loss orders can help you spot surprising errors and help you avoid future losses. Meanwhile, rechecking your commands will show you the strengths you should promote. As for the trading plan, the trading plan has two components - the signals generated by your indicator and your stop loss and take profit rules. You cannot control the indicators or the market while the trade is in progress, but you need to control yourself. Establishing trading rules helps you to control your emotions during sensitive times, thereby helping you avoid making bad decisions.
  15. Plan every trade and never trade without profit or stop loss goals. Trading is not a savings plan; It is a way to build wealth. Always establish your best-case profit and worst-case loss. Trading and investing are not gambling - they're a business, with probable outcomes you can estimate. Take money out of your account from time to time and keep it somewhere safe. The capital allocated to the transaction is not "savings". It always has some risk when it is actively put on the market. Reduce transactions after large losses and large profits. Trade volume based on how much money you have. Don't try too hard, but don't get paralyzed by uncertainty.
  16. Careful with self-appointed advisors and experts. You cannot judge an advisor unless you can evaluate both their trading system and their trading rules, so be careful with these people.
  17. Always look for new ideas. Technical analysis contains thousands of ideas, with a new combination of indicators as well as new trading technologies. So don't be afraid to change, always look for new, improved trading systems and use them if they succeed.