99.999% of the participants in this market are leeks, and there is basically no basic concept of trading.
As an emerging market and the most volatile market in the world, the leader's increase in each cycle is only 3-5 times, which is unimaginable. The main reason is that the proportion of capital attributes in professional trading is too low. Writing this article The main purpose is to allow more people who want to make money in the currency circle to sit down and study the trading method seriously, instead of listening to a few so-called news or stories on the roadside and lying in bed to indulge in obscenity. When there are enough professional traders, the market ecology will be greatly improved.
I focus on studying emotional cycles and major rising trends. This is my first time writing, so I’ll just popularize the basic concepts to you all.
Stock prices always move in the direction of least resistance
This is the basic market theory that every trader believes in. When the upper resistance is smaller than the lower resistance, the bulls will easily push up the price of the currency. When the lower resistance is smaller than the upper resistance, the selling behavior of the holders will push down the price of the currency.
Everything a qualified trader does should revolve around research on the supply and demand relationship (long and short relationship) of the market, rather than trading based on hearsay or subjective opinions.
The research method is very simple, it can be summed up in three words: find patterns.
Everyone can find patterns based on their own understanding of the market and methods that suit them. The patterns found must be able to describe all or most market ups and downs. Only then can they establish their own methods based on the objective market laws.
For example, my summary of the market is six elements:
Emotions, trends, logic, small-level K-lines, large-level K-lines, volume
The above six factors are ranked in order of importance. All of these six factors can be used as a basis for trading with objective data. For example, I use three data for sentiment: 1. BTC performance 2. Market ups and downs comparison 3. Market high-end price growth space and sustainability. The wind is the preference of funds. Funds prefer to attack certain sectors or classify by market value. The logic is to judge whether the story of the currency's rise is in line with the current market mainstream and whether retail investors agree with it. The subsequent K-line and volume rely on the basic skills of volume, price and K-line patterns. Just buy a book on K-line and study it (I have studied more than 10,000 different forms of K-lines and time-sharing charts myself, and the basic skills still require a lot of time to study). I won't discuss it here.
The above is the objective trading basis on the right side, while the left side is more complicated than the right side. The left side is the very beginning of the right side and where the trend occurs. It requires traders to have higher talent and to be both subjective and objective, combining the subjective and objective and making the subjective obey the objective. I will have the opportunity to expand on this later.
This is the first time I’ve written a long article, so I’ll stop here for now. If you are interested in learning trading, you can first read Reminiscences of a Stock Operator written by Jesse Livermore and The Secret of Supporting a Family written by “Making a Living by Stock Trading”.
I don’t know if there are many people in this market who can calm down and read this kind of article. If there are many, I will share my experience with them, hoping to help more Chinese traders gain an advantage in this global trading market and build a more complete ecosystem together.