Hello everyone, I am Yan Chi, an old player in the currency circle. After experiencing the waterfall drop last night, the market is currently in a state of repair. After taking the initiative to stop profits and close positions, I have more time to use writing to empower. Everyone. #Binance
So today I will talk about two types of transactions.
Subjective trading, objective trading.
So what is subjective trading?
There are many kinds of subjective trading: moving average system trading, indicator system trading, Fibonacci, wave theory, Gann, etc., all of which are subjective trading, also called advance analysis and prediction.
Subjective trading versus objective trading. In the long run, objective trading will be more profitable. I think less than 10% of people in the market can do objective trading.
90% of people desire subjective trading, which is accompanied by frequent losses. Subjective trading will definitely result in larger losses.
So what is objective trading?
Objective trading: Don't guess, don't think, don't mess around with yourself.
Trade by judging the trend or drawing a trend line. Many times when you enter the market at a relatively low point, many people will tell you that there is resistance here and you should take profits in the short term and go short. The CPI is negative, and the Federal Reserve is going to raise interest rates again. These are all subjective news, and you need to ignore the noise.
The picture is as follows: 1 #BTC
Although I did not call short at the highest level, after confirming that the key position was penetrated, we entered the market directly from the right and went short. This can also be regarded as an objective transaction, because the short-term trend is a downward break. At this time, don't enter the field easily to catch the flying knife. Need to wait for the market to naturally stop falling.
As shown in Figure 2 below,
Figure 2 shows a huge amount at the short-term level. The definition of this huge amount is that the bulls have been liquidated, or there is demand for intervention here. We should take the initiative to close the short order entering the market on the right and wait for further price action to test. This also forms a large-volume decline in subjective trading, a natural rebound, and a second test. The profit here is about 1100 points. And the order is completed within the hour level. This is also the charm of right-side trading.
You can combine the trend after the 15-minute decline last night, put a huge amount at the bottom, take profit on short orders, and then naturally rebound to the high point and wait for the second test of the bottom. The current price rebounds to a maximum of 26850, and rebounds 500 points from the bottom. This is a K-line trend that you need to understand. Many people go in to chase the long position when it naturally rebounds, and cut the flesh and go short during the second test.
Then let me talk about some long-term objective transactions.
Let’s look at the two charts below. Do you think the trend has broken? Do you think the trend has broken out?
From a trend perspective, the market is still rising. The market is still falling. If it is an objective trading method, do you have a long order, or do your short orders need to be closed here?
When a trend rises, the media and big Vs will look at 1.2 when BTC is 1.8, and 50,000 when BTC is 30,000. At this time, there are various voices and noises in the market.
Objective trading tells you not to pay attention to any noise in the market. In terms of news, if you subjectively see that the trend line has been broken, should we close this transaction? What customer order trading does is the trend. The simplest judgment of the trend is whether the trend line has been broken through or fallen below. Otherwise continue to hold your order.
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Objective trading is against human nature, while subjective trading is in line with human nature.
Human nature has seven emotions and six desires, including greed, fear, hope, and so on.
Subjective trading is in line with human nature. Whatever analysis you do, you need to guess and predict.
In objective trading, once a trend appears, follow the trend.
Many people who are very professional in other fields are terrible at trading. For example, you can look at Newton's experience in the stock market. Newton was undoubtedly a genius in the field of physics, but in stock market trading, he was not even as good as A trader with minimal training. There are actually many, many cases where celebrities enter the market and end up miserable. Regardless of whether you are the CEO of a listed company, a white-collar executive of various types, or other professionals with experience in the stock market, if you have not seriously studied trading, you have done very well in other industries, and you will be able to do it when you come to the trading field. You are very confused. Your success in certain fields has made you like to control and dominate the market in your field. But financial markets absolutely cannot be dominated. I also often say: "Letting untrained people trade is like letting untrained soldiers go to the battlefield"---send yourself to death! 🥶
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Objective trading means that the market trend appears, and you don't need to guess or conspire about the next K line.
You just need opportunities to arise and crises to arise. Be sure not to waste every crisis. A crisis is a good opportunity to build a position. Today, Binance was sued by the SEC. Others may think it is a panic to withdraw coins, but I think it is a good opportunity to build a position. Of course, there is no investment advice here. I feel that as the leading exchange in the industry, both CZ and First Sister have first-class capabilities and reputation in the industry. Moreover, the BSC chain is also a very ecological public chain. I don’t think the current price of 275 BNB will go anywhere, and many partners have learned from my three-gun transaction. Fire the first shot and save the bullets for the second and third shots. Sit tight for the opportunity.
Or maybe you think some altcoins will have good room for growth in the future, and you think other public chains are also pretty good.
So instead of intervening when the currency price is falling, should we chase it when it is rising?
There have always been two types of people in the market, one who sells more as the price drops, and another person who buys more as the price falls.
In the crypto market, there is no shortage of opportunities and capital. Basically, there will be a big wave of market trends in the currency market every three or two months. I think what we need to watch is this big market trend, not the 5-minute K-line.
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After we open a position at the corresponding low point that is considered feasible, all that is left is to wait for the trend to emerge. Seize the trend. When the trend comes, you can do nothing except seeing that you are making money and your position is appreciating. This is the loneliness of the objective trader.
Sharing comes from the loneliness of traders. I am doing both subjective trading and objective trading. Rather than doing a separate transaction method. This is what I have always mentioned to everyone. Friends who know me well know that I trade in split positions. Intraday short term, or cycle short term, several weeks medium and long term, and trend medium and long term. I always do split trading.
In this way, I can enjoy the fun of subjective trading and reap the profits of objective trading.
From an objective trading perspective, you can never buy the best point. As I often say, the bottom is not copied, but set.
For example, for some form of breakthrough, you always wait for the breakthrough to confirm the stabilization before buying, or for some form to fall below and confirm the pullback before selling. So you cannot catch a good bottom or top using objective trading. You can never buy at the lowest point and sell at the highest point.
Everyone likes to feel comfortable buying at the right price, but objective trading will never make you comfortable and will always be against human nature. So he can't make you very comfortable.
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When you really can one day go from subjective to objective. Then you are not far from real profits. And you don’t make money today and make money tomorrow. But you can make profits in the long run and throughout your life.
Once you are objective, you will be very rational. Once you are rational, you will not gamble. Once you are not gambling, you will not go all in.
Why do many veteran investors come to the cryptocurrency market and make big money using spot money? Many of them have no technical analysis and do not know any trading methods, but they all have a concept. Once I am trapped in this currency, whether it is extreme waiting or years of waiting, I must exit at a cost or make money.
When you have the ability and the market is optimistic, you can cover your positions, lower the average price, wait for the market trend to emerge, and take profits.
But in the cryptocurrency market, 90% of people, no matter how many millions or tens of millions you enter, as long as you are trading subjectively, sooner or later the money will need to return to the market.
If you make money from subjective trading, continue to do subjective trading. Sooner or later it will return to the market.
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Subjective trading is not bad, but it is bad for some people. Once you recognize its shortcomings, we must understand its advantages. Subjective trading is actually very effective.
Just like this round of contract championship, the result is not important, but the process is. I have the honor to empower hundreds of partners with my years of practical trading experience. It is very happy to be recognized for this kind of free sharing. #ETH #合约锦标赛
It's very pleasant to get along with people on the same channel. In this competition, including Brother Xu's short-term empowerment, everyone can learn a lot of trading knowledge. But for trading, this depends on your understanding of the market. I think it is impossible to draw a conclusion on subjective trading through a few words from me or Brother Xu.
Subjective trading is what most people in the market want to learn. When a transaction is judged and delivered through subjective trading, the pleasure you enjoy is not how much money this transaction made you make, but how the market conforms to the situation. You have the pleasure of controlling your expected trend, and you have the pleasure of making profits. You enjoy trading. You finally recognize that knowledge can change your destiny.
On the contrary, many people are unwilling to learn objective trading because it is anti-human. It's very uncomfortable to learn.
The road to trading requires a lifetime of learning and understanding. Including myself, I often attend courses given by some colleagues. It can be said that 99% of the content is not helpful to me, but it is often the 1%. Magnetic field response, or energy. You can understand more reasons.
I hope the content of this article can help everyone better understand subjective/objective trading. If it is helpful, please like + follow it and forward it to more partners around you who are confused about the trading path. 👍
