Distinguishing between asset investment and trading

Asset Investment: Stocks, Real Estate, Securities, Intellectual Property Rights

Profit: measured over the long term, cash flow generated from value growth and ownership of that asset.

Requirements: Leverage, mid-term and short-term frames are opportunities to add, do not jump in and out

Entry and exit points are primarily Long-term.

Trading: Gold, BTC, Currency, FX

Profit: generated by price differences in real-time

The nature is not significant price differences, so high leverage is used.

The analysis process is more probabilistic than determining high or low prices

Absolutely do not try to catch the top and bottom in trading, only wait for confirmation before starting to confirm entry and exit points.

Above is the distinction between investment and trading according to textbook standards, but in the process, we also generate two additional styles: holding and trading.

Products of asset investment that are traded, jumping in and out, are categorized as trading, and the products of trading that are held are categorized as asset investment.

Therefore, you just need to clarify what you are doing and what you want, then you can calculate your time in this market.

Investing in LINK as an asset means you must know whether it is in a primary trend of decline or increase; if declining, either cut and find another coin or wait for a rebound to cut some, while if it is in an increasing trend, just DCA whenever it drops (the trend here refers to the long term, opening at the Weekly frame or higher).

As for trading LINK, you must pay extreme attention to SL, TP, because trading with high leverage comes with a very high psychological risk, and pay more attention to short-term price fluctuations.