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Showing posts from February, 2021

How not to love the RSI

The relative strength index commonly referred to as the RSI is a common indicator that is used in technical analysis. Na dhani this is not something new you have heard however if you have not, it measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset.  Most people like to use the RSI and see it as the crown jewel of making them money since it is displayed as an oscillator - line graph that moves between two extremes and can have a reading from 0 to 100. The developer traditionally used this indicator's  values of 70 or above indicate to indicate that a security is becoming overbought or overvalued and may be primed for a trend  reversal  or corrective  pullback  in price. An RSI reading of 30 or below indicates an oversold or  undervalued  condition.

FOMO

 The "fear of missing out" commonly known as FOMO is an anxiety everyone gets themselves into. Usijali nilikua nayo .  I've had it but am glad I've had it out of my system for a while. I ts unconsciously developed and if left untreated can be catastrophic in your daily life as well as on your trading account. Here is how what you can do. PS: You won't overcome FOMO overnight but at least you will have a basic idea when it kicks in and how to control yourself from making irrational decisions. 1. Do not be prey to the bear and the bull. Trading opportunities are always present when you see a spike trend whether bullish or bearish and you instantly take a trade only to find out you've been stopped as a reversal takes place. Better trades will always present themselves all you have to do is wait. 2. Do not feel. Instead build confidence in your trading decisions with a careful planned out strategy that will let you enter and exit at your own convenience rather t...