Some young people interested in investing in cryptocurrencies and financial markets have a clear aversion to reading in fields such as economics, investment, and behavioral economics. They see from their perspective that investing is just capital, speculation, and chart analysis... and they pay no attention to anything but technical analysis, which is true and undisputed.
But we can summarize #technical_analysis by saying it is the study of historical prices and fluctuations over a specific period to predict future prices.
However, there are events that have historically occurred and are constantly repeating, which technical analysis alone cannot explain their causes, such as economic crises, wars, pandemics, or bubbles that lead to market crashes and mass panic. There are many examples of this.
In financial market analysis, there is no single analytical pattern that can fully explain market movements. There are complex interactions involving social, economic, psychological, historical, and political factors. Understanding these factors together produces a more realistic analysis.
Moreover, many analysts and economic newspapers have caused a state of uncertainty for investors. In 2004, when the price of #gold was $400, the Financial Times published advice against holding gold. Today, as I write these lines, gold is priced at $3144, meaning it has increased 7.86 times!
In conclusion, in #financial_markets, you need to develop self-financial and analytical awareness. This does not happen by accident! Read about economics, the history of markets, the books of great investors, and behavioral economics. Learn from those who preceded you on the investment journey, and always stay informed and updated.
Remember that all analysts and economists, when presenting a hypothesis or theory, do not provide it as mandatory financial advice. This is evidence that you are solely responsible for your investment decisions. So be confident, keep learning, and build your own strategy.
