LIVE🚨⚠️ Some PRESUPPOSITIONS in Trading Markets ⚠️🚨
1. Market Trends: Acknowledge that no individual can consistently beat the entire market trend. Whether bullish or bearish, the overall trend tends to prevail, albeit with periodic corrections that are a natural part of the journey.
2. Risk Management: Prioritize minimizing losses over chasing profits. Exiting a position early, even if it means no profit, is often wiser than risking being liquidated by holding onto a position against the prevailing trend.
3. Hierarchy in Markets: Recognize the hierarchical structure within markets, akin to a kingdom. In the cryptocurrency realm, this hierarchy includes dominant players like $BTC and $ETH (the "boss" and "queen"), followed by top market cap coins ("defenders" and "soldiers"), and meme coins representing the "population."
4. Market Whales: Understand the influence of market whales, who often shake up markets for their benefit. Their impact is inversely proportional to the overall market cap, with the cryptocurrency market still relatively small compared to traditional markets like stocks and forex.
NOW YOUR TURN; What other presuppositions do you consider when trading?
Share your thoughts!