Overview Overview
In the trading process, technical indicators serve the trading strategy, and the trading cycle and fundamentals are important components of the trading strategy. This article will briefly introduce the impact of the judgment of the trading cycle on the trading strategy and the trading strategy of counter-fundamental growth .
Report report
Report report
The application of the determination of the trading cycle
Traditionally, the definition of short-term, mid-term, and long-term is divided by the length of time. The short-term is for three to five days, and the long-term is for holding stocks for several years. In the field of digital currency trading market, due to its 7 * 24 hours trading characteristics, there are new divisions about short-term, medium-term and long-term. Those within one hour are ultra-short-term, those that can last for a few hours are short-term, and those that can hold for several months without trading are long-term. There is nothing wrong with the division of this kind of trading cycle, but it lacks understanding and no specific help in the actual trading process.
Therefore, a new criterion for judging the trading cycle has emerged in the market, which is not divided by the apparent time, but by its operational connotation. The midline can only be done for a few days. Under the standard of this division, it can help investors understand various operations, so as to choose strategies suitable for their own abilities and correct mistakes that do not match the strategies.
What is a dash? The short-term is to respect the market and act according to the trend. It does not have many restrictions on the selection of the subject matter. It only pays attention to buying high and then selling higher. It does not set requirements for profits, but strictly prohibits losses. You can enter the market if you have more than 3 points of profit assurance . It does not require familiarity with the fundamentals of the enterprise, but requires a good sense of the market and strict discipline. The key point is to take advantage of the trend, that is to say, if the trend does not change, you can always hold shares. Like in the past bull market of technology stocks, they often rose for several months. However, we must not leave the market prematurely because the profit exceeds imagination or the time exceeds expectation. Therefore, daring to win and being afraid to fail are the essence of short-term operations. But the middle line is different. It needs to have a full grasp of the fundamentals and a good understanding of the price valuation system. Its targets should be those companies with relatively stable operations and no big ups and downs. Buy when the market is underestimated. Selling when overestimated means buying low and selling high. You can only enter the market when the expected profit target is above 20%, and set a stop loss of 8%. It requires you to be a price discoverer, to be brave enough to do what most people dare not do, and to understand the market but not follow it completely. As for the long-term, many investors think that it is the easiest to do, as long as you buy and don’t move. In fact, this is a complete misunderstanding. Among all the operating strategies, the long-term has the highest requirements. He needs to have a very deep understanding of the enterprise and a stronger control over himself. He understands the extraordinary power of accumulation and growth, clearly grasps the development trend of the enterprise in the next few years, and shares the growth of the enterprise with an investment mentality. His target is one in a thousand, and his requirement for profit is tens of times. In the face of such an opportunity, it will not be afraid of any loss, and will not set any stop loss indicators other than fundamentals, because at ten times the speed In the face of stocks, even a loss of more than 50% is insignificant. For it, buying and not selling is the best strategy. Confidence, respect for objective value, ignorance and even courage to fight against the market are necessary investment qualities. 20% and 30% fluctuations should not be considered in the face of such a prospect. Don't give up your position in the big bull stocks. Not to short the big bull stocks is a rule that must always be kept in mind. Only in this way can stocks really become profitable things. The judgment criteria applied in the stock market are also applicable to the digital currency market. In terms of long-term holdings, Bitcoin has to be mentioned. In the past ten years, Bitcoin has risen by more than 100,000 times. The amplitude has also exceeded 90%. Therefore, it requires strong self-control and firm belief to persist in holding Bitcoin and not sell it in the past ten years. Only in this way can excess returns be obtained.
Digital Currency Investment Application of Reflexive Principle
There are also reflexive digital currencies in the digital currency market. Because the digital currency market is more prone to companies whose profits can be easily replicated, and whose production and sales scale can be rapidly expanded simultaneously. Moreover, digital currency has a stronger demand for financing, so it must be more obvious in terms of periodicity and large shocks. For example, UNI, which was very popular in the early stage, is particularly obvious in terms of reflexivity. In the initial stage of listing, there was a rapid financing demand and continued to rise. After the phased financing demand was met, the price began to fall, seeking value support downward. When the next financing demand or market expansion comes, UNI will once again enter the rapid rise range. Therefore, when investors find that the company behind a certain trading currency is continuously expanding the market size or has a strong financing demand, they can choose an opportunity to enter, and quickly leave the market when they determine that the short-term financing needs of the company can be met. But all transactions are uncontrollable, so in the transaction process, we must strictly abide by the established trading strategy and control the profit and loss points.
Conclusion
risk warning:
risk warning:
Be vigilant against illegal financial activities under the banner of blockchain and new technologies. The standard consensus resolutely resists various illegal activities such as illegal fundraising, network pyramid schemes, ICO and various variants, and dissemination of bad information using blockchain.
