Silence The Noise
Financial Markets Require Focus
As an investor or trader, if you think back on some of your most notable blunders, you are likely to find several familiarities. Most commonly, is that of responding to FUD, or being flustered by incorrect, or exaggerated opinions and viewpoints. Navigating financial markets requires not only a level head but accurate and appropriate data. Exercising either of these truths in isolation is likely to still produce error or failure.
It’s not even a case of being synergetic, but rather an imperative union. Being focused does not merely enhance the application of accurate data, but is essential in the execution thereof. I recently addressed the quality of Crypto-related content being consumed by Crypto enthusiasts. This too, is very much an aspect of silencing the noise. Essentially, noise is that which is unnecessary, inaccurate, or redundant.
The problem with social media (even blockchain-based) is everyone has an opinion. Unfortunately, the majority of voices carry very little, to no weight. Essentially, many are inexperienced, lacking knowledge, and should spend more time absorbing data, as opposed to interpreting it for a public audience. At the end of the day, people are free to share as they choose. However, the downside is, that this type of content usually creates noise.
Think of the market as a speaker. If you are to hear the voice of the speaker, his voice must remain predominant. If the almost silent whisperings of the audience become elevated, his voice is lost, and the message, along with it. If you truly wish to accurately interpret what the market is communicating, you will have to reduce the noise. Unfortunately, it can get even worse.
Some do not even attempt to interpret what the market is communicating… their sole diet is noise. If you are an investor who always seems to buy the top, or a particular altcoin when everyone is talking about it, you perhaps need to consider that you have a predisposition for consuming and paying attention to noise. This is a credible sign and one that will require action.
Less Is More
The concept of less is more regarding Crypto-related data and information might sound counterintuitive to some. However, it’s rather apt and boils down to the isolation and consumption of quality information. For any serious investor, this will most likely be found in the form of technical analysis, on-chain data, and other publications that have a track record of accuracy.
In other words, the interpretations and predictions have a level of substance and are then further backed by confluence. Ultimately, hindsight validates these opinions as not only being accurate, but consistently accurate. These are the voices that should receive attention. Why? For the most obvious reason the information they impart is beneficial, and more importantly, profitable.
Once again, there is often the case of a disconnect. Some might read this and think that it’s too serious an approach. In other words, they simply believe that their casual streaming through Crypto-related noise all day is eventually going to produce returns that are going to change their life. They want to approach investing like a rookie and walk away with returns like an expert.
Final Thoughts
If you want to beat the benchmark, you need to begin approaching the market in a similar way to those who have already done so and continue to do so. The silencing of noise is an imperative and integral aspect of the process. Imagine, for a moment, the effects of upping your game, while simultaneously dumping toxic activities. Not only that but what better time to start?
We are in the final stages of Chapter 1. A term I coined months ago to describe the initial stages of a bull market. A period of final accumulation, before a heightened period of accelerated appreciation. Many times investors look back on a bullish cycle in remorse. Now’s your chance to start right, and begin developing better practices that will be beneficial long term.
The road to becoming a more effective investor or trader is most definitely a process. However, it is also rooted in adopting the appropriate practices. This is such an opportune moment for Crypto investors and one that we need to be aware of, and more importantly, take advantage of. All the best! Catch you in the next one!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
