Are you good at Fundamental, Technical and Market Analysis? If not, you do not want to miss this article.
Many people try crypto trading but only a handful of them are successful. The main reason is lack of knowledge and experience.
What I mean by success is that you should end up with profits rather than losses within your predefined trading durations. It could be hours, days, weeks or even months, but only as per your "Trading Plan". Random profits, luck or gambling gains cannot be considered as success.
Thus, in order to be successful, you need to learn first and then obtain plenty of experience.
Fundamental Analysis: When it comes to learning the fundamentals of a selected Cryptocurrency, I believe it is not very difficult but one will have to read a lot to grasp the knowledge. Fundamentals are the fundamentals without which you will not know how good your crypto would be in the near future and the long run.
Technical Analysis: When it comes to Technical Analysis, the knowledge is widely available but statistical analysis itself is much more serious than you would hear in YouTube or so. If it is not, why are there bachelor's, master's and even PhDs for the said field? If you hold a degree in Mathematics or statistics, you would clearly understand what I am talking about.
I'm not discouraging you, but if you want to master Technical Analysis, do not start from "technical indicators" but start from the basics of statistical analysis and obtain a sound understanding about "technical indicators" and the theories behind them. That will bring you more success with experience than blindly using technical indicators.
Fundamental and technical analysis alone cannot do the trick either.
Market Analysis: Market Analysis is understanding the movement of the overall market direction regardless of the fundamentals and technicals. For example, if the US Economy is undergoing a recession, no matter how good your fundamentals and technicals are, the overall market will crash.
It is somewhat difficult to forecast, but the general economic, crypto market cycle and crypto whale movements could provide us with some invaluable information.
Market Manipulation: You may have probably heard of "Market Manipulation", well, crypto market is one of the most if not the most manipulated market in the world in my opinion.
Therefore, regardless of how good your fundamentals or technicals, the market may start moveing in the opposite direction of your prediction out of the blue.
Why? Because the manipulators know "your prediction" as they are the masters of fundamental and technical analysis. Therefore, they can easily read our minds and predict our moves. Then with that information, they make moves to profit at your loss.
Please read some real world case studies here.
However, you can master understanding manipulator's behavior too. Nothing is impossible.
Yet, above is easy to say but very difficult to achieve in the real world as different people are good at different fields but they all are not good at statistical analysis. That claim is also based on statistical analysis of humans.
I believe this is the main reason why copy trading is required by many people. You may not be able to master statistical analysis or market analysis, but you may be able to follow the footsteps of one who does. It's easy and works better than hustling forever. If you follow the right person, you will profit every month while minimizing the risk.
It is also a good option if you do not have time to stare at technical charts for hours to find good entry points, draw trend lines, supports or resistance lines.
In simple terms, copy trading is like hiring someone with sound knowledge and experience to spot entry points and exit points for you while you engage in your day to day life.
Kaalama Crypto Pro - The Copy Trading Club is our solution for you. Just give it a test drive. Its FREE to test for two months.
All the best.
Dr. Buddika Adikari (Ph.D)
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