Friends who trade cryptocurrencies know that there is a saying in the crypto world: 'Holding coins is better than trading coins, and mining is better than holding coins.'
This saying sounds quite reasonable, but that desire to make quick money still leads many people to choose trading.
The problem is, trading can be thrilling if done well, but if not, money can vanish in an instant. So how do you avoid becoming a 'leek' that can't be harvested?
Start from the basics; the simplest thing is the candlestick chart.
Speaking of candlesticks, their origin is a bit old-fashioned; Japanese rice merchants in the 18th century used them to record rice price fluctuations.
Later, this concept was borrowed by the securities market and gradually became a core tool for analyzing market trends.
In simpler terms, candlesticks are like the electrocardiogram of trading; they allow you to visually see the 'heartbeat' of the market — when the coin price moves, the market moves, and investors' sentiments also change.
What do candlesticks look like?
You only need to remember two types: bullish and bearish.
A bullish candlestick indicates that the coin price has risen, with a lower opening and a higher closing; a bearish candlestick indicates that the coin price has fallen, with a higher opening and a lower closing.
From these, you can easily discern the general trend of the market, but the most important thing is to analyze the market emotions expressed by each candlestick, the power comparison between buyers and sellers, and the possible upcoming trends.
The key point is that candlesticks actually serve as signals to guide you.
If you see a long bullish candlestick, it may indicate strong buying power in the market.
Conversely, if there are consecutive bearish candlesticks, it may suggest pessimistic market sentiment, ready for a reversal at any moment.
Through these changes, you can seize the best entry timing.
In fact, trading is like a game of strategy; it's not that complicated. Candlesticks can help you see through market emotions, make smarter decisions, and avoid blindly following trends.
Don't rush to chase after a rise or panic to sell after a fall; stay calm, learn to analyze the market, and you can stabilize your strategy.
So, trading isn't difficult; what's difficult is understanding these candlestick signals, mastering the rhythm, and not being swayed by market emotions.