Quick market analysis#btc100k
But why is the market melting down?
Through SMC analysis, we learn that large investors move the market until it reaches points of interest called liquidity. For a large investor to be able to make a large purchase or sale, he needs a counterparty, someone who wants to buy or sell.
let's use the example of buying:
A large investor wants to buy, but if he buys at market he will not make a profit, so he forces movements contrary to the purchase to reach the stop loss of the large mass. At that moment, the large mass believes that the market has changed its downward trend and begins to think about selling. In fact, this manipulation by the large investor is only so that he can have a counterparty for him to make his purchase.
Have you ever noticed that you, the small investor, look at the market and say now it will continue to rise and the market falls?
This way is exactly how the big investor wants you to think, because there are thousands of people who think the same as you, they keep buying when the market is rising and selling when the market is falling and they forget to analyze what the market cycle is.
In short, large investors manipulate the markets with the aim of capturing all stop losses and being able to make their purchases, achieving large profits.
NOW I WILL TALK ABOUT HOW TO MINIMIZE LOSSES:
First: trading using leverage is practically a game of chance because in the world of cryptocurrencies any fluctuation can generate a stop.
Second: focus on the long term, look for the best opportunities and start thinking differently than you would think.
third: the obvious is nothing more than a trap and a thought that big investors want us to have.
Wednesday: Don't be a stingy hand. Win a lot and lose a little. Our mind is programmed to endure a lot of pain, but when we have a good feeling of joy and euphoria, we want to withdraw the profit and that is exactly what ends up making us lose money.