What are the most effective ways to use TA to manage your reputation risk?

Multiple time frame analysis, is a form of analysis that I rely one heavily. One can use the analogy of a clock. You have the hours, the minutes and the seconds. It is the same with time-frames. However one can extend this approach by combining it with fundamentals. This is what I call as M.T.M.F. (Multiple Time Frames, Multiple Factors) Each time frame (Monthly, Weekly, Daily) has its own dominant return drivers

Technical indicators can enhance our analysis and be helpful during indecisive times especially at market highs and bottoms. RSI divergence help you to decide for the market direction many a times at key reversal points. For example, in a bearish trend, if prices are falling and meanwhile RSI shows an uptrend or break its downtrend slope, we can be cautious for initiating any sell entries. MACD also helps us to validate our assumptions and help taking decisions and minimize risk. Once we see a MACD crossover above its signal line and if MACD is above 0, we can look for buy side trade confirmation as per prices in a bearish market and in this way the indicators help to taking risky trades and help reduce our losses.

In my experience, the analysis of a trend and deciding the direction of the market, is just the beginning of a trade. But more important for me is to look at the risk reward ratio, Stop Loss levels and other risk management aspects. In Forex markets, in terms of trade, for any intra day trade execution, I always see first at the Stop loss and prefer trades with very low SL say around 10-20 pips are always my favorite trades. I always keep on searching for trades with minimal Stop Loss to increase my risk reward ratio. Position sizing should be in line with your account size and taking more lots means increasing your risk. Hence these risk management methods are important to keep your account live and protect you from reducing drawdown.

After confirming the validity of our trading strategy, through Backtesting and Forward Testing, it is the discipline and consistency which makes every trader a successful. If you are satisfied and trust your strategy, then no matter even if a strategy gives a few losing trades, but one needs to stick to that strategy. Each strategy has a particular success rate and so no strategy can always give you profitable trades. But what is important is that we need to simply follow our strategy with consistency and discipline. One day, as per my entry system, prices did not enter my buying zone and reversed, I kept watching the market go higher but i simply sit back and did not enter into the trade as the trade was not initiated as per my system.

To use technical analysis (TA) effectively and avoid damaging your reputation, understand its limitations and use it as a tool alongside other factors. Establish a disciplined trading routine and use TA to validate decisions. Be cautious of confirmation bias and transparently communicate your use of TA. Avoid making unrealistic claims about its capabilities, never overtrade, and take responsibility for losses. Continuously learn and stay updated in the dynamic field of TA to manage reputation risk and enhance trading performance.