The behavior of truly exceptional investors should be personalized, following their own investment philosophy.
Dow Theory, like the invention of the steam engine, has brought about tremendous changes to human production and life. It has opened a new chapter in human investment, earning it the title of the ancestor of the five major technical analysis systems.
At this point, you might wonder, 'Who founded Dow Theory? Who is Dow?' Charles Dow was the founder of the Dow Jones Financial News Agency in New York and also the founder and first editor of The Wall Street Journal.
He once worked on the trading floor of a securities exchange for several years. His personality is cautious, restrained, calm, and conservative, with a strong understanding and self-discipline. He has profound financial knowledge and exceptional judgment. Great individuals are always objective and calm. Throughout his life, Dow rarely showed anger, which is an intrinsic factor in establishing groundbreaking theories.
The articles published by Dow were organized into various chapters of Dow Theory by his assistants and successors, including William Peter Hamilton. Dow Theory objectively describes the unchanging changes in financial markets. Such changes are scientifically referable in any financial market.
Have you ever noticed a very interesting phenomenon? There are two coin markets in this world. One is the real coin market, which gradually reveals a clear image amidst the chaotic misunderstandings; the other is the fictitious coin market, the one that exists in media narratives that like to mislead people, and the one that resides in the minds of those who chase fame and profit. It is a coin market filled with erroneous yet dramatic commentary. The figures that survive in various rumors are no more real than the protagonists of any old cliché. These insights stem from my decade of experience in cryptocurrency trading, reflecting profound realizations after weathering storms. May they illuminate your path forward. Let us clear the clouds of information together and perceive the truth of the market.
Those distorted images spring to life in various sensational rumors like your neighbor, but unfortunately, you have never truly seen what this neighbor has become.
Here I want to tell you a hidden truth, which is also the essence revealed in Dow Theory: 'No one can manipulate the main trend; the main fluctuations of the market follow a predictable pattern.'
We can only objectively identify and follow the market's development trajectory, rather than fantasizing that the trend aligns with our own imagination. Although some claim the market is manipulated, this remains an illusion. Here, you receive the second hidden password: 'Wealth.'
In the world, as long as you grasp the rules of a matter, you have found the key to unlock the treasure chest. Western Dow Theory believes that a price is formed by the transactions of buyers and sellers, and market developments occur between support and resistance, causing the market to always oscillate between bull and bear markets, with each phase further divided into three periods. The motion of the index is formed by the overlapping of three types of movements, resulting in ever-changing prices during the three periods of bull and bear markets.
The main idea of Dow Theory can be divided into two parts: one part is a summary and description of historical market laws, and the other part is a method of identifying these laws. The former focuses on the description of the cyclical patterns of bull and bear markets, and the principle of the three movements as the core representation of the overall market operation. The specific method of self-identification is based on Dow's definition of trends and the principle of three movements, which includes the decomposition of various trends and the self-identification of their relative positions. The latter further identifies the relative positions of different local areas during the same period. The specific method for mutual identification is based on the principle of mutual verification, which allows for a three-dimensional identification of how the current market situation aligns with the laws presented by the Dow model.
Sharing insights on trading coins:
1: Regularly invest in mainstream coins and leading coins; regular investment is better than a one-time gamble.
Investing all at once increases the probability of making money. If you invest everything at once and the price falls afterward, it becomes difficult to average down. Seeing low prices doesn't mean you can buy more coins easily, which is particularly frustrating. You miss opportunities to lower your cost, and even in a bull market, your returns will be significantly lower.
2. Enhance your earning capacity outside the market.
In the market, the main focus is on buying coins and accumulating them. If you want to hold onto your coins, you need to improve your ability to earn money outside the market. Your ability to make money depends on the work you do. If you have more time, invest in yourself, learn more, acquire more skills. Following me to become a Twitter KOL can help convert traffic into cash.
3. Invest more in areas you are familiar with.
Investing more in areas you are familiar with allows for better risk control. Investing in things you don't understand can lead to greater losses. Investing in familiar areas increases cash flow. With cash flow, you can gain more profits and won't have to sell your valuable coins due to price drops.
4. Deeply study the operation techniques of speculative capital.
The development trajectory of familiar and hated historical coins. You need to establish your own profitable trading strategy and continuously optimize your coin selection and timing in practice.
Revealing tips for learning to trade coins:
1. Invest with spare money; avoid borrowing money to speculate on coins - invest money + invest energy.
2. Strictly screen valuable coins and create a reasonable capital allocation plan that aligns with reality - Sunny Investment Strategy.
3. Averaging down - it is normal to experience pullbacks after entering a position, so it's essential to allocate funds wisely and enter in batches.
4. Refuse to be fully invested, allocate your positions reasonably, and don't put all your eggs in one basket to effectively reduce risks.
5. Keep an eye on the market - frequently check the latest news in the coin world and financial sectors. The earlier you know, the more you understand, and the sooner you can earn money.
6. Think in reverse, don't go against the institutional investors or market trends, go with the flow.
7. Open contracts, not fully invested, leverage below 5 times, avoid using 100x leverage lightly. It's best to avoid leverage; don't seek to get rich overnight, but rather aim for steady profits.
8. Controlling your own income and managing your positions is more important than anything else. If you're unsure, don't act lightly. If you don't trade, there is no risk, and you won't lose money. Look at your assets often to see if they are being managed and if the management is reasonable.
9. The bottom is in your mind, the top is in your mind. Don't be afraid; the coin market will only help you grow. Your mindset is more important than your actions. Remember the trading methods, and there's no worry about not making money!
Penetrate the fog of information and discover the real market. Seize more opportunities for wealth creation and discover truly valuable opportunities; don't miss out and regret it! The journey in the coin market is long. If you are also a fellow traveler and need help learning methods and techniques, comment '1' for free assistance!
