Stupid Theory: Being stupid is not scary, just don’t be the stupidest one
In August 1919, the famous economist Keynes borrowed several thousand pounds to engage in forward foreign exchange speculation. After only four months, he had fully doubled his profit. He was so happy that he borrowed money again to increase his investment. However, three months later, he lost all the money he had earned and the principal he borrowed.
Seven months later, Keynes got involved in cotton futures trading again. This time, he was very successful. Not only did he make a lot of money, he also discovered an important theory in investment psychology - the "Boss Fool Theory"
The "Boss Fool Theory" means that in the capital market, people will completely ignore the true value of a certain commodity and are willing to pay a high price to buy it because they expect that a fool will buy it from them at a higher price. In this regard, Keynes gave an example about the famous scientist Newton:
"Liquidation" Many people cannot escape this "destined fate". It must be very painful to liquidate your position. You will lose your funds and your confidence will be greatly affected. I can understand if you find a corner where no one knows and cry.
You are definitely not alone, you may have heard that 90% of Forex traders lose money in the first year of their trading career. Maybe no one knows the exact data, but I personally think this number is only an underestimate and not an overestimate. I was also in the early days of trading, and I also experienced the pain that almost any trader would experience.
1. Technical Analysis Trading Strategy Technical analysis is an analytical method based on historical price and volume data. This analysis method believes that price trends and price patterns can predict future market development trends. Technical analysis typically includes indicators such as trend lines, moving averages, relative strength index, and stochastics. By observing changes in these indicators, traders can predict the upward or downward trend of market prices and formulate corresponding trading strategies.
2. Fundamental Analysis Trading Strategy Fundamental analysis is an analysis method based on market and economic data. This analysis method believes that there is a certain connection between digital currency prices and economic and market factors. Traders can predict the price trend of digital currencies and formulate corresponding trading strategies by paying attention to factors such as digital currency supply and demand, market demand, and investor sentiment.
Hello everyone, I am sober in the world after going to zero 8 times and then standing up again.
✅✅✅
1️⃣Bitcoin has risen 64 times from 2015 to 2021
2️⃣Bitcoin rose 18 times from 2020 to 2021
3️⃣Ethereum increased 53 times from 2020 to 2021
Today let’s talk about 5 things to remember about the bull market
Bull markets are times of optimism and growth, and can be great opportunities for huge gains. However, it's important to remember that bull markets don't last forever, and it's crucial to approach them with a healthy dose of caution while focusing on long-term goals. 🙂
Hello everyone, I am sober in the world after going to zero 8 times and then standing up again.
✅✅✅
1️⃣Bitcoin has risen 64 times from 2015 to 2021
2️⃣Bitcoin rose 18 times from 2020 to 2021
3️⃣Ethereum increased 53 times from 2020 to 2021
Today I will talk about three opportunities that I think can maximize profits.
1. Trend line breakouts and retests
The first setup is a classic trendline breakout. Note that this setup will be accurate if the trendline is based on at least 3 subsequent bullish or bearish moves. If the market rebounds from the trend line, it is vertical support. If the market moves down from the trend line, it is vertical resistance. Breakout of a Trend Line - Vertical support is a candle that closes below that trend line. After a breakout, it becomes a safe spot to sell the market.
Bitcoin suddenly plummeted in the early morning, breaking through the $26,000 mark at one point, and about 6 billion yuan of funds evaporated. What factors affected it?
First let’s look at the chart
The amplitude of a single K line is 12.58%
99% of people should be liquidated by this needle
Then I will talk about my own logic
1. Look at my process of judging the top
As a matter of experience, it is basically necessary to judge whether there will be a top or a shock.
Repeated attempts to push up have no results, and typical efforts have no effect.
It is basically judged here that there is no way to rise again.
Then zoom in on the cycle and see the opportunities the K-line gives you
In line with the rectangular trading principles in my minimalist
Basically, he breaks the position and draws back.
This is BTC
Let’s look at the card ETH again
With these three lines, people with some technical knowledge can also see where the trading points are.
Jesse Livermore, the number one person in the U.S. stock market for a century, has always existed like a god, but he didn’t read about Livermore’s life experience in the book. The content in it is all about his operations and several bankruptcy transactions. In this part of life, if you want to analyze a person's success or failure, you must study his life experience, especially an outstanding master like Jesse Livermore. The details of many of his life experiences are of great significance to us younger generations. It will be a great inspiration for a legend, but in the end it is such an ending. I still can't figure it out, but I can figure it out, because the financial market is bloodthirsty. Tears are not believed here, only results are believed. There is no warmth here, there is just a game between people, where the best survive and the fittest survive. 90% of the people here are so busy that they don’t know who they made the wedding dress for. When you are not equipped to survive in this smoke-free battlefield, it is best not to enter the market rashly, because the stock market is very realistic. Livermore began studying the keys to stock market success as a child. It's just that he hasn't found this elusive key yet. He told his good friend: "Success is to make a prompt decision." And I always watched the big bull stocks crazily rising because of the lack of this "quick decision", and because I was unwilling to miss the low point, I was late. Didn't come in late. Livermore said that he would personally mark at which prices the market will reach critical points, and then you will find that the process of studying critical points is like digging for gold. This work is so fascinating that it is almost unbelievable that you will become independent. In judging successful transactions, you will experience a unique pleasure and satisfaction. I forgot what Livermore said: "Profits can always take care of themselves, but losses will never end automatically." It was obvious that I could make a lot of money, but because of my own mentality, I took a direct stop-profit position, which was wrong. It's too outrageous. I know that he said and emphasized that he discovered the key point of this trading method through the recording career of stock prices. The price he discovered is actually his trading model. I am also very confident in my own trading system, but my problem is timing. I enter the market early every time, or I am not firm after entering the market. If there is not a good time to intervene in a target, it will kill your will to hold shares. Therefore, throughout Livermore's trading system, he places great emphasis on time, and he is unwilling to waste too long on a single stock. The characteristic of the entire trading system is that it is mainly short-term. To obtain profits quickly, if this phenomenon does not occur, then he will reflect and think that there is a problem with his intervention point. I will also reflect on it often! Because my entry point is also very problematic. Livermore said: "The real market will not start and end in one day. The real market will always take a while to complete its final stage." Therefore, I should start with what I have. In terms of trading system, we should learn from those words of Mark Millervini in terms of timing. Mark Milvini said: "I learned a long time ago that you can be a player in building base and volatility, or you can choose to exploit it, and I decided to be the latter. When you do nothing, those who are weak, lacking Skilled, undisciplined people are laying the foundation for your success." Use trading rules to limit your own desires, use simple thinking and mentality, and move from complexity to purity, from complexity to simplicity; if you can do this, I believe One day, I will realize my dream.
Hello everyone, I am sober in the world after going to zero 8 times and then standing up again.
✅✅✅
1️⃣Bitcoin has risen 64 times from 2015 to 2021
2️⃣Bitcoin rose 18 times from 2020 to 2021
3️⃣Ethereum increased 53 times from 2020 to 2021
I started to be unable to stand straight today
As mentioned in the horizontal direction, the horizontal direction revolves around the price. This period’s vertical direction also corresponds to the price, but it changes from a constant price to a changing one.
Uptrend line:
It's very simple. Two points determine a straight line, so the low point of the K line will run in the predetermined direction along the price support line.