Trading is like blocking, an excellent entry point requires patience, and a perfect operating strategy also requires a suitable time period! This is how trading is, the strong will always be strong, and the weak will always be weak. Use small stop loss to gain big profits, and continue to enlarge! But in the market, many people just want to run after making two points, and continue to fight after losing ten points! Contradictory operations are destined to be an investment career that cannot make ends meet! Of course, it is easy for individual investors to face the market on their own and become obsessed with the authorities. However, if there is someone outside the circle who can see the situation clearly and give direction, they can do better. To achieve ideal expectations, it completely depends on the cooperation and tacit understanding of these two people. Being able to work together with a high degree of tacit understanding is also a kind of happiness and achievement! After doing analysis for many years, Chen Yao believes that in order to gain profits from the market, the following points need to be achieved:
First: Fundamental Analysis
Fundamental analysis can give us a general idea of the recent trend. Focus on some important indexes and indicators that affect the cryptocurrency market, which will have an important impact on the short-term trend! Since the cryptocurrency trading market is global and is affected by many global factors, the information we need to pay attention to must be comprehensive and timely. For us individual investors, the most effective way is to choose a more authoritative platform. We can combine the information resources provided by the platform with our own practical operating experience, so that we can seize the opportunity and make huge profits! However, the difficulty of this method is that there are too many mixed information resources. We must take a lot of time to collect information and identify the direction and degree of impact of each information on the market based on our own experience. This is a very big challenge for inexperienced investors.
Second: Technical Analysis
I think technical analysis is more practical for short-term investors. Because cryptocurrency investment has the T+0 trading characteristics, both long and short positions can be operated. When investors find that the trading direction is wrong, they can change their operating ideas in time, which not only reduces losses but also seizes profit opportunities. In major market conditions, we can take two-way orders and set stop-profit and stop-loss points to ensure that we can make profits in market conditions with excessive fluctuations. In addition, the system's own MA, MACD and other indicators also have certain guiding significance for the judgment of short-term market trends. If used reasonably, they are very helpful to investors!
Third: mentality
If investors want to obtain stable returns in the market, it is important to have a calm mindset. The most taboo thing is to be eager for quick success and instant benefits. The price fluctuations of coins are sometimes very drastic, which requires investors to have a good psychological tolerance. Investors need to face huge losses in an instant rationally and make the right decisions in time to avoid risks. Due to the weakness of human nature, this ability needs to be cultivated through long-term training and baptism.
Fourth: Firm Faith
Before making a transaction, you must make adequate preparations. You cannot just decide on an operation direction at random. You must make corresponding judgments based on the current market conditions. After determining the direction of buying and selling, you must be firm in your beliefs and not change them at will with market fluctuations. Unless there are obvious signals that your previous judgment was wrong.
Fifth: Build your own trading skills
On the road of investment, as for methods and skills, it can be said that everyone has his own opinion. Only when you wear a pair of shoes can you know whether it fits your feet. It is not necessarily practical to completely adopt other people's methods. You should establish your own trading skills and self-deny and improve them in continuous practice. If you use them skillfully, every skill can bring benefits.
Sixth: Choose the right time to buy and sell
Many investors have had this experience: they did not close their positions in time when they made money, and they could not bear the loss and closed their positions when they lost money. The market is not short of opportunities to make money, but it lacks the right buying and selling points. Although it is difficult to grasp the right buying and selling points, there is a principle worth learning from: "Be patient and be contented."
Investment is a balance between long-term and short-term, between oneself and the market, and between expectation and reality. From a microscopic point of view, investment is also a balance between data and perception, and a balance between absolute and relative. Of course, investment is also a balance between long and short, a balance between risk and return, and a balance between perseverance and abandonment. Investment is an art of balance. Only when you understand the trade-offs and choices can you be considered mature and not burdened by stubbornness. It is not terrible to be lost in the sea of suffering. What is terrible is that you can't find the guiding light! Every novice investor will learn from his own lessons, and smart people will benefit from the help of professional teams. Choosing an excellent mentor to walk with you can make it easier to reach the other side of success!