The Opposite Approach to Trading: Observation Rather Than Assumption

Most traders form their own opinions about how the market should react to certain events or news, and build trading decisions based on these expectations. However, this approach often leads to mistakes, especially when the market behavior diverges from predictions.

The well-known trader Daljit Dhaliwal, whose average annual return over 9 years of active trading is 298%, employs a different method. He does not make premature conclusions and does not trade based on assumptions. Instead, he observes market movements and then analyzes the reasons behind what is happening. This approach allows him to avoid cognitive biases and make decisions based on facts rather than emotions.

This mindset is particularly relevant in conditions of high volatility, where the ability to adapt is more important than the ability to predict.

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