Hi, welcome to CoolLab. Have you noticed that from the beginning of my channel to now, I have never talked about technical analysis. Of course, some people are also curious about how I usually place orders and why I can still do it when the market plummets. Filming calmly? That’s right! Next, I plan to sort out my past trading experience and turn it into a series of teachings, condensing the more than ten years of experience in my trading career into a systematic teaching that is easier to understand, easier to digest, and will be useful whether you are playing in traditional finance or crypto assets. There are ways to learn from one or two, so that you can be more confident when trading. Trading is not gambling!

https://youtu.be/TOnxQV6LcHI

Who is Technical Analysis suitable for?

Technical analysis is suitable for every trader. Technical analysis can be applied to any form of financial products, and the general direction of the principles will be the same. Whether you are doing stocks, futures, foreign exchange or cryptocurrency, you basically use the same set of analysis methods. Similarly, specific asset classes will require corresponding subtle adjustments, and our series will focus on the general direction, but will also include corresponding changes in cryptocurrency and trading experience as a supplement.

Why use technical analysis?

Anyone who has been exposed to various stocks or emerging crypto assets must have seen drawings. Some people can draw technical analysis like a weather chart.

Some can be painted as concrete dinosaurs,

Some even directly turned into metaphysics. But you can say that technical analysis is an art, but you can also say that it is a fantasy or conjecture. What kind of result will there be when a certain phenomenon or trend occurs. This is like weather forecasting. We can predict the trajectory of typhoons through high and low air pressure, but there are often many variables that can cause the trajectory to deviate. The most important thing is that people often have their own opinions about the market, that is, where there are people, there will be differences of opinion, and differences of opinion create this trading market. The trading market will be a distance battle between buyers and sellers. Whichever side wins will move in that direction. If there are more buyers in the market, it will also rise in a positive direction. On the contrary, if the sellers are stronger, the market will move in that direction. will fall. Technical analysis is to summarize past trend experience to judge the possible next trajectory. And this will also become a systematic and replicable judgment method. This is why trading is different from gambling. Technology can be replicated rather than purely relying on luck.

Why invest?

I want to bring everyone back to reality first. No matter which asset you are operating, think about why you want to invest? Everyone’s answer must be that they want to make money, but there are many ways to make money. Why invest? There should be no one who wants to put more pressure on themselves when they are full and idle.

The most important thing is that you can verify whether your judgment is correct by moving your fingers, and if you make a correct judgment, you will be rewarded with money. Because of this, don’t think too complicated when trading. First, try to control your emotions and stay as calm as possible, because emotions will affect your judgment. This is like how you improve your cooking skills but don’t know where the pot is. The flame is suddenly big and small. No matter how good your cooking skills are, the result will be unstable. Sometimes the food is not cooked, and sometimes it is burnt. Therefore, the mentality will be the most fundamental in order to make a calm judgment! As for how to practice? some! I have been trading all my life, and I highly recommend Texas Hold'em as a great way to practice. Because you have to make judgments every time to estimate your winning rate. Of course, after the winning rate comes out, you still have to place a bet to verify whether your judgment is what you think. Of course, your opponent is more like the trading market. Did you win money from him or did you get all in?

Don’t think too hard about technical analysis

Trading is like walking, you can even walk barefoot! Technical analysis plays the role of more like shoes. It is an auxiliary tool, so it is useless to have more! Just like many people are often particularly superstitious about certain indicators or signals, there are often many so-called masters who make technical analysis extremely complicated and often require some frivolous operations. Some even come up with names similar to martial arts secrets for certain indicators or line types.

Everything I said was clear and logical, and it was really not necessary. Because auxiliary tools are still auxiliary tools in the end, you still have to choose shoes that are comfortable for your feet. No matter how flashy the shoes on your feet are, or how you install springs or rollers, the ultimate goal is to walk (trade). So I hope everyone can stop thinking about technical analysis too complicated. This series will simplify everything. However, after trading for a long time, everything will return to the simplest basic concepts. Just like learning the Dugu Nine Swords, everything will change. There are no tricks to succeed, but there are tricks to win. I hope you can start from the most basic to learn or review again!

Technical analysis of cryptocurrencies

Before the various teachings begin, I need to pour cold water on everyone. As mentioned before, technical analysis is an auxiliary tool, but when this auxiliary tool is used in cryptocurrency, the auxiliary effect becomes relatively low, just like It is better to wear spike shoes when running on the track, but in the crypto market, purely technical analysis based on line charts will become more like running shoes. It cannot be said that it is completely useless, but the effect will be worse. Therefore, there will still be some other types of assistance. Although they can be used to analyze the general trend, it is difficult to make judgments using only moving averages. After all, the deviation rates are very large.

The most important thing is that a piece of news or a decision often leads to sharp rises and falls, and the phenomenon of leveraging is common in the crypto market, which makes this phenomenon more serious than traditional finance. As for the practice of technical analysis, the points everyone looks at are very similar. After all, the principles are the same, that is, the points for stop loss and increase are similar, so there are often very large fluctuations at some key points. But after learning the basic concepts, I will talk about this part additionally, and I will give you some tips here.

Summarize

Today's episode is more like the beginning of a series. I will also put the following videos into the "Trading Lab" playlist. No matter what kind of asset trading you are doing, it will be helpful because the basic principles It's all the same. This series of teachings will be in order. For those who have no trading experience or want to review again, you can just watch according to the number of episodes. Of course, if you want to start practicing, there is also a registration link below the video to help you save handling fees. , it is cheaper than registering by yourself, so you can take advantage of it. Some exchanges also have trial funds that can be used as simulation exercises. Of course, in the end, if you feel you learned anything from this video, you are welcome to give us a like and help us share it with your good friends!