A strong bullish candlestick for Bitcoin broke through $100,000 with high volume. I thought it would be a valid breakout, but yesterday's large bearish candlestick dropped directly below $97,000, with a low price retracing back to $96,100. The candlestick is still operating within the previous consolidation range.
The market is ever-changing and can catch you off guard; this is impermanence, and impermanence is the norm.
We must view and face the market calmly, objectively, and rationally. Whether making money or losing money, we must always maintain emotional stability.
This is the prerequisite and essential element for trading. Emotionally and mentally, we must not be influenced by market fluctuations, nor disturbed by our account's profit and loss.
It may sound simple, but is it really easy to remain unfazed when facing adversity, and to stay calm amidst market fluctuations?
Whether it's difficult or not, the answer to whether you can or cannot do it must be that you must do it. The market will not change because of your will, nor will it develop based on your emotional state.
Just like the reservoir thinking in management, running a business is like our daily lives. We cannot only think about better days during good times; we must learn to be vigilant and prepare for potential future downturns.
Back to the chart, in a downtrend, we look for support levels to see if key support can effectively stop the decline and whether there will be a reversal signal after the decline stops.
First, look at the smaller timeframes; smaller timeframes will evolve into larger timeframes. When technical indicators appear at key support levels, we need to analyze through subtle clues whether it can effectively stop the decline, or if it’s a continuation of the downtrend, or a reversal signal that restores a new upward trend. This is what we need to do.
The ability to analyze the market technically requires hard work to master; no one can help you with this. If you want to achieve good results in the cryptocurrency space, don’t be lazy.
If you do not possess this ability yourself, then when I say the decline has stopped and someone else says it will continue to decline, whose advice should you follow?
If you lack independent thinking ability, the capacity to make correct decisions, a suitable trading system, trading levels, trading strategies, a good mindset, and the right investment thinking and concepts, then how can you make money in this globally participative financial market?
How to alleviate worries? Only self-improvement. Daily life is like this, and the financial market remains the same; seeking help from others is always inferior to seeking it from oneself.
When you lack these abilities, you must learn to leverage, to learn from those who achieve results, and this also requires your ability to discern, choose, and believe!