More than 80% of new investors lack the fundamentals of technical analysis, making them unable to identify optimal entry and exit points in the market. As the bull market approaches, there will come a time when prices stop rising and begin to retreat, leading the market into a new bearish phase. The question here is: how will these investors react when that happens if they are unable to read technical indicators and make the right decisions?
It is essential to take advantage of the current period, as the market is still in a relatively calm phase, to gain knowledge and prepare for the upcoming bullish movement. One of the common mistakes many make is believing that all currencies will rise and stop at the same time, while the reality is quite different. Only the best projects in each sector will be profitable, and the most prominent sectors that will see a rise include:
Artificial Intelligence (AI)
Real World Assets (RWA)
Decentralized Infrastructure (DEPIN)
Games
Memes
After the bullish phase, these sectors will begin to decline one after another. Therefore, closing all trades at once may lead to missing out on significant profits, while delaying the closure may lead to losses or falling into a bear market trap.
To achieve a balance between making profits and avoiding risks, it is essential to have a basic understanding of technical analysis. Instead of focusing on current prices, it is wise to invest this time in learning and preparing to make the most of upcoming opportunities.
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