Discussion on trends and strengths

1. The relationship between the elder brother and the younger brothers

In the cryptocurrency market, 80% to 90% of small coins follow Bitcoin. Bitcoin only needs to fluctuate 2,000 to 3,000 points to cause violent fluctuations in small currency prices of 5% to 6%. This is an undoubted fact, which can be confirmed by looking back at the market performance after Bitcoin's previous sharp corrections.

2. Strong currency

What is strength? Whether among people or in the animal world, the natural law that the strong always becomes stronger remains unchanged. The same is true in the investment world. When markets fall, funds tend to flow to safe havens. Therefore, we often see certain stocks rising against the trend even when the market is plummeting. These phenomena are the manifestation of strength.

3. Big trends

Most traders choose to go with the trend when the market is falling and go short. However, we can still trade against the trend and look for targets that have long potential. Although it is more difficult to find the 10% of strong targets, it is precisely because of this that we have the opportunity to earn benefits that 90% of people cannot obtain. "It is a trend to go short when the general trend is going short, and it is also a trend to go long when a single target is going long." This sentence is worth savoring carefully.

4. Technical analysis

I often view those who use price action (PA) analysis in the cryptocurrency community as stupid. It’s not that I think I’m particularly outstanding, it’s that the market is too young and immature. They moved traditional market tools here and used them here, which is tantamount to performing tricks and deceiving people. We look back at the process of Bitcoin falling from 70,000 to 54,000 US dollars. During this period, how many PA traders analyzed countless long or short orders, but in the end they all followed the trend. What is the significance and reference value of such an analysis? The only thing I don’t object to is to only use PA to analyze BTC. At least this way you eliminate one of the biggest influencing factors and directly analyze the strongest opponent, which can reduce the chance of losing money due to the flash crash of the big brother.

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Why do I insist on being long and number one?