Technical experts at Cointelegraph point to a bearish RSI divergence signal similar to that of 2021, which could lead to a 50% correction down to around $64,000, accompanied by a break of the support area around $100,800
💼 Capital Management: The Secret to Staying in the Market
Many people think that success in forex comes from correctly predicting market movements, but the truth? Real success starts with capital management.
No matter how strong your strategy is, if you don’t have a plan for managing your money, one losing trade could kick you out of the market!
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✅ Why is capital management so important?
Because it protects you from significant losses.
It allows you to stay in the market for the long term.
It reduces the impact of emotions on your decisions.
It allows you to lose and continue, instead of collapsing after the first loss.
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📌 Key Rules of Capital Management:
1️⃣ Do not risk more than 1-2% of your account balance in a single trade. This means if your account has $1000, the maximum loss in a trade should be only $10-20.
2️⃣ Use Stop Loss You should not enter a trade without determining where you will exit.
3️⃣ Do not chase losses. This means if you lost a trade, do not enter the next trade out of revenge.
4️⃣ Diversify your trades. Do not put all your capital into one trade or one currency pair; spread the risks.
5️⃣ Calculate the risk versus reward. Do not enter a trade unless the expected return is at least double the potential loss.
📊 Types of Forex Analysis: How to Understand the Market and Make Better Decisions?
To be a successful trader in the forex market, your decisions need to be based on analysis, not luck or randomness. Analysis is your way of understanding market movement and identifying the best entry and exit opportunities. There are three main types of market analysis.
1️⃣ Technical Analysis
Technical analysis focuses on price movement on charts. The basic principle is: "History repeats itself," meaning that price patterns that occurred before may repeat.
Liquidity is the market's ability to execute buy and sell orders quickly and easily without significantly affecting the asset's price.
When we say that the market "has liquidity," it means that there are a large number of buyers and sellers, allowing you to enter or exit a trade easily and at the best possible price.
Importance of Liquidity:
✅ Fast execution of trades ✅ Lower spreads ✅ Less price volatility ✅ More stable trading environment
In highly liquid markets such as major currency pairs or some large cryptocurrencies, traders can enter and exit trades without losses due to "slippage."
In low liquidity markets, entering and exiting becomes more difficult, and prices can move suddenly due to slight demand or supply, increasing the level of risk.
🎯 As a trader, always choose assets with high liquidity, especially if you are a beginner, so you can trade with confidence and reduce the likelihood of falling into the trap of severe volatility.
🚨Trump literally went insane.. a number of tweets attacking Jerome Powell significantly, saying he should now cut by a full 100 basis points.. 100 full points?? Is there a war or a pandemic? Or is he afraid of the recession that Elon Musk talked about?
The Importance of Education Before Trading with a Real Account on Binance
Before you start your journey in trading with a real account, you must understand that education is the foundation that determines your success or failure. Trading in cryptocurrencies is not just about buying and selling randomly; it is a complex process that requires in-depth knowledge and understanding of the market, trading strategies, and how to manage risks.
The first important step is continuous learning. You need to know the tools of technical and fundamental analysis, understand the impact of economic news, and learn how to create a clear trading plan with specific rules for entering and exiting trades. Without solid education, you are exposed to significant risks, such as making hasty decisions that lead to substantial losses.
Also, it is very important to start with a demo account, where you can practice without the risk of executing trades and understand market movement practically. The demo account is an opportunity to gain experience and develop your skills before risking your real money.
Education not only helps you understand the market, but it also boosts your confidence and reduces the impact of emotions like fear and greed on your decisions. Investing in yourself through learning is the best step you can take before starting real trading, as it protects your capital and increases your chances of success in the long term.
So don't rush, take your time to learn and practice, and start your trading with steady and studied steps.
Patience in trading is a key to success Trading in the cryptocurrency market on Binance requires more than just technical knowledge and analysis; it requires great patience. Many traders fall into the trap of haste and make decisions based on emotions like fear and greed, which leads to unnecessary losses. Patience means waiting for the right moment to enter or exit a trade and not getting swept away by momentary market fluctuations.
When you are patient, you can assess the market calmly and make informed decisions, which increases the chances of achieving consistent profits in the long term. Always remember that trading is not a race but an investment, and patience is the weapon that protects your capital and enhances your success.
So be patient, trust your strategy, and don’t rush the results; success comes to those who know how to wait.