Greetings to all readers, as many know the world of blockchain, is a place with many things to learn, as well as decisions to make, especially those who are engaged in trading, a world full of good and bad decisions, so one group wins and another group loses in monetary terms, but everything will depend on the decisions you make, and accurate market research you do to have a better view of the market and what you want to do.
The image used is from Public Domain, Author: David Schwarzenberg, 2017
To better understand the subject, let's start talking about the basic principle of trading, which is to buy a cryptoasset near the market support, waiting for the rebound and sell when it is reaching the resistance, of course waiting for the respective confirmations depending on the indicators used, This is what must be fulfilled in people who make short-term trading, there are other more specific cases, such as the holder, which are people who buy a digital asset and wait the time until that asset increases its value to sell it, you could talk about months and even years, a method that in particular I do not like.
Making the right decisions can lead us to success, and generating a constant success can lead us to the financial freedom that we long for, a goal that is not easy to achieve, but it is likely to achieve it in the world of blockchain, now with what was said in the previous paragraph we can say that making a good decision would be to buy crypto assets as close to the support following the technical indicators that we are using, and the bad decision is based on buying at resistance knowing that the price can go down, for a better understanding I will show the following graph:
Screenshot taken at: Binance
This chart is corresponding to the recent behavior of BTC in the market, which was facing a strong resistance at 50k, where many people decided to invest their money, thinking that it would continue its growth in a straight line to infinity, which can be considered as a bad decision, This is because the price made its correction approaching the nearest support almost at 42k, so many people for fear sold and lost money, now has another possibility and that is to wait for the BTC to rise again and exceed the price at which they bought for that bad decision to become a good one.
The image used is from Public Domain, Author: Csaba Nagy, 2016
The world of trading is something that can generate many economic resources to people who use it, as long as you make in-depth studies of this market and you manage to understand the market cycles, but it can also end your resources if you always make bad decisions, which make you lose money and confidence in the blockchain, and even more that they say that in this world only 1 in 100 people come to understand and make trading successfully, thanks for reading my article.