Generally, investors who invest in London Silver will learn many technical analysis methods. Technical analysis is a market analysis tool that is very suitable for ordinary investors. However, in London Silver investment, the role of technical analysis is not omnipotent. In fact, technology Analysis still has many shortcomings. If investors are superstitious about the ability of technical analysis, they may eventually suffer losses. So, let’s discuss the weaknesses of technical analysis in London Silver Investment.
The future market established according to technical analysis will continue to repeat itself, so we capture trading opportunities in the market based on various forms and patterns, but we have to consider a question, that is, what should we do when history does not repeat itself? . In fact, in spot London silver investment, technical analysis failure often occurs, so what is important is how investors can effectively manage transactions when technical analysis fails.
Secondly, not all technical analysis tools are used in the London silver market. Before conducting basic analysis on the market, we must first evaluate the market. Are the mechanical analysis tools we use suitable for this market? Even if we have to separate ourselves from this market, is it suitable for the current situation? For example, if the current trend of London silver is consolidating in a range, if we are using a sequential trading strategy, then this is inappropriate.
So in London Silver Investment, in fact, technical analysis is not omnipotent. It is very simple. It is just a tool of probability. Within a certain probability, it can succeed. For example, the success of a technical analysis tool The rate may be 60-70%, which requires investors to use other tools to manage transactions.