In this core circle of short trading, you can forget about the core reason for technical analysis: this small ecosystem is small enough that you can observe the intense confrontation of long and short funds behind technical analysis, as well as the competitive effects during the process of a consistent bullish outlook.
The phases of cycles are nothing more than the final market characteristics that arise after the confrontation of trends. After studying so much technical analysis, you may come to realize that technical analysis may always be lagging; it is a good balance that emerges after the confrontation of long and short funds.
Many people play cryptocurrencies solely based on their feelings. They might win a bit in the early stages and then start to think they are genius traders, that getting rich is simple, and then they become overly confident, believing that the crypto world is just a game. They start to heavily invest and use high leverage, losing their rationality and turning into beasts that only consume, often falling into the traps set by hunters, losing their lives. Strict position management is crucial.
When trading, you must enter positions reasonably based on your own capital; you cannot hold on to losing trades. Set stop losses properly. Contracts are suitable for swing trading; when there is a profit, you should take it out first. Not taking profits is just a number, and with rises come falls. Only by entering and exiting at the right points can you achieve long-term profits. Remember, no matter how good the market is, stop losses must not be neglected. Perhaps stop losses will hurt, but at least there is still a chance; however, forced liquidation offers no chance at all. There are no generals who always win, and it is impossible to profit on every trade. Developing the habit of setting stop losses allows you to go further.
You no longer need to stay up late watching the market and guessing trends, nor do you need to struggle over whether your buy and sell points are precise. Only take opportunities with clear trends; hold back in bear markets and maintain your positions in bull markets. In the next wave of the market, I will say, let’s step in rhythm together to seize profits and let the profits outperform 90% of retail investors!
Only those who truly want to change, remember, the crypto world is not short of opportunities; what is lacking is the execution to keep up.
