In the real estate financial market, stocks or crypto are essentially a house game. We must understand the rules so we can win. These are the 20 rules of the financial market. We think right, think right, and finally we take right action in our investments.
1. Theory of train acceleration (trend)
"When the market is bullish, it will continue to rise. Conversely, when the market is bearish, it will continue to fall."
When we feel that the new price has increased and increased, then the market trend will continue to increase and vice versa.
2. Take responsibility for your own investment decisions
The only and long-term way to win in the investment market is to take responsibility for your investment decisions, be independent in thinking, independent in tactics, and knowledge in the market.
3. We win because we invest with principle
In the market we will not be able to control all risks. So the key point here is that we must invest according to principles, we must allocate capital.
We can divide capital according to the list 4 3 3
List 1: There are 4 large, safe coins: BTC, ETH, BNB,... Reserve 40% of capital for list number 1.
List 2: Mid-range coins, leading hst, leading trends in the market. Reserve 30% of capital
List 3: Higher risk investments (can be x30, x50). Set aside 30% or 20% of capital
In these lists, we divide them into other coins. Good capital allocation, risk management.
4. Allocate capital to large codes, so that it is a backup for your investment portfolio
If we do not buy good tokens or good stocks, of course the risk will be greater. Always have a backup stock portfolio and safe investment codes in your investment portfolio
5. Market trend is the deciding factor
We must know which trend stage the market is in. When should we invest according to the attack strategy? When should we invest according to a defensive strategy? Using the factors of technical analysis, crowd psychology analysis, fundamental analysis, and market trends.
6. Follow in the footsteps of giants
Giants always leave a large footprint on the market with technical analysis factors. Because price charts represent everything, the sharks they enter will leave their mark with technical analysis. All waves and trends originate from medium-term time frames. Preparation and baiting decisions from the shark group are required. All trends starting from 1D and above require preparation for the trend, preparation for the trend, and cash flow. When we have knowledge, we will be able to identify which areas the shark will push up.
7. Perfect investment psychology
Many times, the analysis is good but the psychology is not good, the strategy applied to the market is not correct. In addition to being good at analysis, you also need to have psychological control and discipline.
8. The market is always led by a "certain" trend group
Traditional and marketing effects that Sharks need to do. During this time, we need to see which industry codes are being marketed and which industry codes are being communicated. If there is no media effect but only a price effect, it is a misleading trend, it is not strong.
Before starting to look at a 1W or 2W model, we must see if there are any industry groups?
9. Any successful investor must accept cutting losses
Because investing and trading are both probabilistic, we need to control the risk of each investment decision within an acceptable level.
You must know that if this decision is wrong, how much will you lose? Is it within the allowable limit of your assets, is it within the allowable limit of your psychology? We need to control the risk of each investment decision within an acceptable level.
10. When the stock code or coin starts to peak, it is time to consider leaving the market
It is at the peaking stage that we notice the beginning of a weakening. At that time, let's look at the technical analysis of the leading code (BTC) and see signs in the peak area. Pay attention at that stage.
11. The crowd buys and sells based on emotions
The crowd often trades based on emotions and other people's beliefs, so when they lose, they become angry and blame others. To become a good trader, try to escape the crowd. Equipping and improving your knowledge is a good way to help you become more confident when trading in the financial market.
12. The market has periods of increasing and decreasing periods. In addition, the market has periods of moving sideways
The bullish market phase when a strong trend is determined by the shark group makes the fomo crowd into the goal of this phase which is to make a profit of the shark group. The downtrend target is the selling phase of the shark group. The goal of the sideways period is to cause discouragement and discouragement in the market so that the crowd releases their goods, allowing the market to reset for the new season.
13. It's not true that every good news will mean the market will increase
In addition to paying attention to trends and fundamental analysis in the market, we must also check with technical analysis.
"Sharks always leave their footprints on the market."
14. Bad news does not mean the market will decline
This rule is the opposite of rule 13. We must always check technical analysis. Being in a rebound wave means that the downward momentum is weak and then it will probably continue to rebound upward.
15. During a really strong trend period, it will usually follow five wave rhythms
The market will not always follow the Elliott wave. (For example, during the sideway phase, Elliott cannot run)
16. When the market enters a real uptrend period, there will be a long-term strategy (both stock market, Crypto) 3 - 4 months
Once it's really on trend, it will have to stay on trend for several months. It's not like you just gained 1-2 months but immediately lost it. These are just light waves, we have identified the accumulation area and the cash flow, the media campaign will see a really strong rising wave and I will recheck the technical analysis if all the The time frame ensures that the momentum increases so you can confidently KEEP.
17. Greedy people always want to buy at the bottom and sell at the top. As for experienced people, they buy in safe areas
When a trend begins to increase or begins to decrease. Greedy people will want to be able to buy at the bottom and sell at the top. Let's look carefully, check again with technical analysis, experienced people buy in safe areas.
18. People will always find a reason to justify whether the market increases or decreases
When they look for such a reason, they will not find the root cause. When they look for such reasons, the market either increases or decreases.
"News is the effect, the cause is the money flow." Please note this!
19. When everyone believes that buying will make a profit, that's when we should consider selling.
Upstream thinking. You must train yourself to have a tendency to argue in terms of thinking and going against the crowd.
When we see the crowd thinking too much in a certain direction, we must prepare a risk scenario for the opposite direction. Let me be ready to act if there is a signal from fundamental analysis or technical analysis. Act in front of a crowd.
20. The uptrend of any market (both real estate, stocks, crypto) always has a capital allocation period
PROFIT-TAKING SHARK Phase.
Legendary investor Jesse Livermore once said, "There is nothing new in the financial market. What happened in the past will continue to happen in the future and in the future as well. Because Because human emotional nature will never change." In the real estate financial market, stocks or crypto are essentially the house's game and it makes money in the financial market. We must understand the rules so we can win. These are the 20 rules of the financial market. We think right, think right, and finally we take right action in our investments.
Source: Theblock101.com