In every business, venture be it online or real-time trading where money is used for the exchange of goods and services, there has to be a hidden secret that is known or made known to those who go in search of it. One cannot wake up in the morning and just rush into any business without first trying to know and understand the rudiments of the business he intends to go into. If it happens otherwise, he will end up going into the business with great blindness to how it is been run. Just imagine a car driven by a blind man or even a car that has no headlamp moving at night, the outcome is always terrible.
Cryptocurrency is gradually becoming the order of the day with a lot of people adopting it every new day. This steady adoption comes with a great cost for those who do not bother themselves with the idea of learning the necessary things which will enable them to understand the workings of this space. They are people who were either introduced by their friends, family members who must have heard about crypto before them or they might be people who heard about it on the news or read about it on the national dailies. Now, the implication is that a lot of them who must have heard it from someone may be at the mercy of the person who introduced crypto to them. What does this mean? This means that the person they heard it from has the power to either make rich or make them go bankrupt. This is why advisable that anyone who ventures into the crypto world must be ready to carry out his/her research in a way not to repeat the mistake of others.
Having established the above fact, let us look at the very vital point everyone should know. It is called Technical Analysis. I will try and shade more light on what technical analysis means and why we must endeavour to have a little knowledge of it.
TECHNICAL ANALYSIS
Technical analysis is the financial analysis that deals with the usage of data through patterns to identify and understand market trends for possible predictions. It is also done through the use of graphs and charts to determine the historical patterns in a way to know and understand the futuristic movement of a market. There are two major types of technical analysis namely; the Chart Patterns
and the Technical (statistical) Indicators. The indicators deal with the comparison of prices to an established pattern by measuring directions and the strength of a trend. On the other hand, the chart pattern is used by technicians to know the areas of support and resistance and they do this by looking at the support and resistance level of a given pattern.
To a newbie in the world of crypto, all I have said above may be sounding like the sound of an empty gong which does not give a melodious tune to the ear. I will advise that you take your time to go and do some thorough research on technical analysis and all that is there to know if as a newbie you wish to make it in the world of cryptocurrency. It is common knowledge that a lot of people have come together to create what is now known as Signal groups both in telegram WhatsApp and the likes of it in a bid to helping those who may be finding it difficult to comprehend all that is needed in Technical Analysis. I am not here to teach you about technical analysis rather I am here in a way to spur you into action because once you do not understand it and you go into trading without any form of help, you are bound to lose your money.
Let me use this opportunity to admonish those who think that the study of technical analysis is a waste of time. This set of people make use of their assumptions probably because they were able to predict the outcome of a football match, therefore they think and believe they could do so with crypto.
ASSUMPTIONS (the deadliest method of trading)
I have a friend who I introduced into cryptocurrency trading and before I could say, Jack, my friend has already engaged himself in spot trading because he has been predicting and betting with football which has been working very well for him, so he felt as though he could do the same in crypto trading. Within the space of one week, he was already in a loss to the tune of $320 even though I warned him about it. This loss made him think and believe that crypto trading is a scam. I did not try to convince him at the moment not to believe such rather what I did was to start sending him online materials on technical analysis. Since he studied statistics in school, he was able to understand the workings and gradually he returned with a better understanding of crypto trading and how best to go with it.
If you are a newbie or an older person in crypto trading, do not feel reluctant to do your research because you may not be as fortunate as my friend to get someone who will willingly send the needed materials to you. It is not just about having the materials it is about knowing how to read the charts and graphs to be able to predict the possible movement of the market price.
DON’TS
· Never make the mistake of assuming market price because a lot of people have gone bankrupt by doing so.
· Avoid FOMO, FUD and always do your research.
· Do not ape into a project because others are doing it without having to check what the market technical analysis says about such a project.
· Do not shut your ears and eyes to the happenings around the globe especially when it has to do with financial news.
· Don’t forget to sell or buy a token at your own pace and according to your financial capacity.
· Lastly and very importantly, you must be a boss of your own by developing your pattern and reasons why you must buy, sell or go into a particular project.
Always remember that your success and failure in crypto trading lies in your hands and not in the hands of that person that introduced you to crypto trading. Be Wise and see you at the top of the ladder. I love you all. Please stay safe covid 19 is real.
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