Training Methods for Market Sense
Good market sense is a prerequisite for cryptocurrency trading.
Good market sense is an essential requirement in the cryptocurrency circle. Market sense needs to be trained, and through training, most people will improve. How to train market sense can be approached from the following aspects:
1. Persist in reviewing the market daily and select targets based on your own cryptocurrency selection methods. The focus of the review is to browse the trends of all cryptocurrencies. In the review process, the selected individual cryptocurrencies should not only conform to your own selection methods but also share commonalities with current market hotspots, showing connections between sectors and industries, which increases the probability of a strong market in the future. After reviewing, you will discover the overall market trend from the trends of individual cryptocurrencies and identify sectors from their similarities.
2. Carefully review the cryptocurrencies that are among the top gainers and losers of the day again, identify the reasons for the strength (or weakness) of individual cryptocurrencies, and discover what you consider to be buy (or sell) signals. Cryptocurrencies that meet the buying criteria can enter your watchlist for tracking.
3. In actual trading, focus on tracking the real-time trends of your target cryptocurrencies. Clearly understand the specific meanings of their opening, closing, highest, and lowest prices for the day, as well as the actual situations regarding major force's upward pull, selling, and market support. Understand whether the relationship between volume and price is normal, etc.
4. Reflex training. Identify classic trends of individual cryptocurrencies that start from the bottom and continually stimulate your brain.
5. Train yourself to quickly browse the dynamic market situation every day.
6. The most important aspect is to have a set of operational methods that suit you, especially those that arise from the above training.
Reviewing is using a static perspective to look at the overall market again, which addresses situations where you might not have time to observe or summarize while monitoring the market dynamically during the day. After the market closes, clarify where funds are actively flowing in, where major funds are escaping, where the selling pressure in the market mainly comes from, and where the buying momentum is coming from. Are there correlations between industries and sectors? What are the reasons for these situations? Which cryptocurrencies are in a golden period of rising, and which are about to break out perfectly? What are the primary reasons for today's market fluctuations, etc.? You need to review the market comprehensively again to better understand market changes.
