Timeframe is the minimum time interval for grouping price quotes. Any textbook on technical analysis will tell you that the older the timeframe, the more important it is. But most people are more concerned about what is happening here and now. I have already told you more than once how important the topic of psychology is in investing. Today we’ll talk about time frames at
$BTC . And why do most traders who trade Bitcoin and alts on daily time frames lose money? According to official statistics from brokers, 80% of people lose on the market. In the crypto market this figure is even higher. And this is normal, because the basic principle of the market is that in every trade there is a winner and a loser. After all, if everyone won, and everyone were winners in transactions, then this market could not exist in principle. The majority must lose in transactions; we figured it out. And judging by how unevenly wealth is distributed, the remaining 20% would benefit from a situation where this gap increases.🙋🏼♂️ How to join this minority? First of all, give up margin and margin trading (may Binance forgive me). By its nature, leverage works as an income multiplier (booster). What is it for? To maximize profits. Why maximize it? Because greed dictates so. The same snake that also recommends using a larger deposit for a “verified insider”, because of it stops are not set in transactions, because you can always have time to “quickly” sell at “breakeven”🐍Since greed is a vice that exists in every person , then over time everything worked out so that greed led to poverty. But greed is not always scary, since it’s just a person’s psychological state, which can be changed even on your own if it’s not in an advanced form. It’s scary when poverty leads to debt (margin trading) or to “well, now the market will definitely go down/ up. I’m ready to bet on it even with my leverage.” Debts lead to all sorts of troubles, why do you need it? Experienced traders can cope with fear through the right approach to risk management. But greed overcomes even great traders and the recent case with old Michael is an example of this. Therefore, it is important to have an investment position and take profits periodically. But more on this in a separate article. Now there is a medium-term and long-term growing trend. But you need to trade and sail with a tailwind, that is, with the trend. Don’t let fear and greed take over your mind, the news will be the most negative for everyone now.🔎 If we open the monthly timeframe for BTC, the RSI indicator is M1 (month): 58 - neutralH1 (week): 78 - there is overheating (fixing a little profit) D1 (day): 61 - neutral H4: 58 - neutral ❇️ Result: It is important to work according to your long-term strategy and not give in to emotions. Therefore, you should always be in an emotionally stable state (without a marginal position) and the money factor should not put pressure on you in principle. In this blog, I share my personal experience and how I control risks in client accounts. I talk about how not to fall into the trap of emotions and how to create a long-term strategy for increasing capital. I talk about a pack of promising ideas ahead, subscribe 🚀
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