Which Technical Indicator Is The Most Accurate To Make Profitable Trades?
Let’s start with the spoiler…
Relative Strength Index is likely the most accurate leading indicator that many successful stock traders highly rely on. It’s an oscillating momentum indicator that not only delivers big on its performance but is also recognized for its user-friendliness. Moreover, owing to the fact that it represents market conditions using plain numbers, RSI is also quite convenient for the new traders to understand.
Following RSI, Bollinger’s Band is the second most accurate leading indicator.
So, now that you know “which technical indicator is the most accurate” – NOW WHAT?
Does that guarantee you a high profit?
Can you now turn your fortune and become a profitable stock trader?
Will this piece of information now help you become better at trading?
Knowing Doesn’t Guarantee Anything
Profitable stock trading is about practicing and not knowing. It’s much more than just about getting your numbers correct. It is about understanding the trends that often go unnoticed in numbers. It’s about gauging market’s emotions and traders’ fears to identify newer opportunities.
Of course, technical analysis plays a major role in traders’ success. But it isn’t a sole factor. If it were, every qualified and technically proficient trader would have the most money.
Experience Is More Important Than Qualification
There’s a reason why the majority of successful traders contend for the experience. There’s a reason why they ask beginners to not get mangled in the theories and taste the market first-hand.
Because experience feeds deep understanding, practical awareness and overall intuitiveness – all of which are important to build a high-value portfolio.
As you get more experienced, as you experience more profits and losses, you also grow as a stock trader. And what you learn from the market first-hand eventually exceeds what you learned in the classrooms.
Consider All The Different Factors
Yes, do rely on the most accurate leading indicator. But also consider various other factors that contribute to making your trades profitable.
This is one of the many things that good stock market trading courses teach. Their curriculum packs a wholesome package, to arm traders with not just the technical knowledge but also the practical understanding of the market.
So, if you’re looking to climb up the ladder, become better at share market trading and take your portfolio to the next level, invest in your all-around growth and not just technical ability.