Technical Analysis Alone Is Not Enough To Trade Successfully (2024)

New traders after experiencingloss either leave the market or decide to learn. Ideally one should learn and then get into the stock market, unfortunately, people often learn it the hard way. They lose first and if they haven’t lost all of their money they think of doing it the right way.

Now when they start learning the first thing that comes to their mind is to learnTechnical Analysis.And when they do decide to go for a course in Technical Analysis, they come across such wonderful concepts like Support & Resistance, trend line, Fibonaccietc. that it feels that life is now sorted. However, when one applies these theories in the market, it falls flat on the face and losses continues. This leaves one all confused & belief that one can actually earn in the market begins to wane. They learn more aboutTechnical analysisbut the result is the same, disappointment& more disappointment.

Why is that? Why Technical analysis does not work? Well, it does but know alone. If your trades are based on only technical analysis then your success rate will be not more than 40% and with that kind of success rate you just cannot earn in the market.

So, now what to do?

The answer is Derivative Analysis. The derivative analysis is the study of Option & Future data. Derivative Analysis together with Technical Analysis can improveyour successrate to as high as 80%. You’ll be able to spot trend better also trend change will be much easierto decipher. Now, why is that?

The reason for the low success rate of technical analysis is that when you are doing the Technical analysis you are only looking at charts which is the pictorial presentation of the Future price. Here you are completelyignoring the Option data which is significant data. You just can’t ignore anything when you are analyzingthe market and to ignore such a vital option data is a cardinal sin.

Option data analysisshows in which direction the position is being made whether short or long. Now, whenever a position is made there is a buyer or seller so how do you decide who is more powerful, buyer or the seller. Option analysis will help in deciding this.

It is the combination of Technical Analysis & Derivative Analysis that makes analysis complete and more precise. Option Trading can be extremelyenjoyableand profitableif we combine the two analysis. You just cannotignore any of the two, Technical or Derivative analysis. The difference between an average trader and a successful one is that a successfultrader has a holisticview of the market……not just technical analysis but derivative analysis too

Keep learning & happy trading.

New traders after experiencingloss either leave the
market or decide to learn. Ideally one should learn and
then get into the stock market, unfortunately, people
often learn it the hard way. They lose first and if they
haven’t lost all of their money they think of doing it the
right way.
Now when they start learning the first thing that comes
to their mind is to learnTechnical Analysis.And
when they do decide to go for a course in Technical
Analysis, they come across such wonderful concepts
like Support & Resistance, trend line, Fibonaccietc. that
it feels that life is now sorted. However, when one
applies these theories in the market, it falls flat on the
face and losses continues. This leaves one all confused
& belief that one can actually earn in the market begins
to wane. They learn more aboutTechnical
analysisbut the result is the same, disappointment&
more disappointment.

Why is that? Why Technical analysis does not work?
Well, it does but know alone. If your trades are based
on only technical analysis then your success rate will be
not more than 40% and with that kind of success rate
you just cannot earn in the market.

So, now what to do?

The answer is Derivative Analysis. The derivative
analysis is the study of Option & Future data. Derivative
Analysis together with Technical Analysis can
improveyour successrate to as high as 80%. You’ll be
able to spot trend better also trend change will be
much easierto decipher. Now, why is that?

The reason for the low success rate of technical
analysis is that when you are doing the Technical
analysis you are only looking at charts which is the
pictorial presentation of the Future price. Here you are
completelyignoring the Option data which is significant
data. You just can’t ignore anything when you are
analyzingthe market and to ignore such a vital option
data is a cardinal sin.

Option data analysisshows in which direction the
position is being made whether short or long. Now,

whenever a position is made there is a buyer or seller
so how do you decide who is more powerful, buyer or
the seller. Option analysis will help in deciding this.

It is the combination of Technical Analysis & Derivative
Analysis that makes analysis complete and more
precise.
Option Trading can be extremelyenjoyableand
profitableif we combine the two analysis. You just
cannotignore any of the two, Technical or Derivative
analysis.
The difference between an average trader and a
successful one is that a successfultrader has a
holisticview of the market……not just technical analysis
but derivative analysis too

Keep learning & happy trading.