It’s not that I completely ignore the K-line. After all, the K-line is the chart that most directly reflects the current market situation. Behind every transaction there are countless stories, endless blood, tears and carnival.
Compared with K-line trading, I prefer news. Of course, this is related to the fact that I mainly do long-term trading. For medium and short-term operations, K-line still needs to be the focus.
But the main reason is that after reading the stories of some institutional traders, I felt that I did not have this ability.
Chatting with traders is one thing, but watching the experiences and stories of the market makers is another. Among these big guys who are able to enter institutions as senior traders, which one has not formed a trading system, and which one has a more stable mentality than retail investors?
They are well aware of the impact of K-line on retail traders. They have chips in their hands and they have the patience to wait for a big wave. They can start accumulating chips a few months ago, then create a wave and add fuel to the fire in the process. When the momentum is big enough, they will take big gulps and eat their fill.
This is still the spot and contract market, as well as the options market.
Transactions in the spot market are actual entries into the market. Although the contracts are related to the spot market, they cannot deviate too much from each other.
However, the options market will only enter the market after delivery, which is another battle between the exchange and investors.
What do you have to play with others? Naked King? You can't tell which naked King the dealer wants you to see and which naked King is real.
The news is not just market news, it also requires data. For example, why is the loosening of chips of long-term holders beneficial to the long term?
The cost of long-term holding of coins is low, occupying too many chips, lowering the average cost, and thus increasing the "unrealized profit"
Unrealized profits are a risk index. When the chips loosen and re-enter the market, the average cost is raised, which reduces the risk index.
The momentum of funds entering the market later will also increase
From a human nature perspective, those who come later don’t want those who come earlier to make too much money.
Therefore, when enough long-term chips are loosened, the resistance to subsequent funds entering the market will decrease, and the long-term trend will rise.
Reading the news is quite interesting to me. Although it requires a lot of brainpower, it is more like reading a detective novel. Isn’t that great?
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