The biggest mistake beginners make is thinking a falling price is always a "low". A stock dropping from $100 to $60 might look cheap, but it could still be on its way to $0.
These create a "corridor" for price. When the price hits the bottom band, it’s often considered a technical low. 3. The Psychology Trap: Why We Do the Opposite buy low sell high trading strategy
Buying low and selling high isn't about predicting the future; it's about reacting to and probability . By using technical indicators and keeping your emotions in check, you can move away from "guessing" and start trading with a system. To help you get started, Draft a sample trading plan you can customize? The biggest mistake beginners make is thinking a