Choosing Your Investment - How Do You Choose Your Target?
You'll find fortune-tellers, soothsayers, and general know-it-alls in the murky world of bitcoin forums, bulletin boards, and social media. They all have one thing in common: they assume they know what will happen in the future. By the end of the year, they'll say with absolute confidence that Bitcoin will be worth $50,000. By the end of the year, some will claim that Bitcoin will fall below $2,000 in value.
But the truth is that no one has the capability to exactly predict the price of Bitcoins or any other cryptocurrencies. So, how do you choose your investments wisely? How do you choose your targets?
All that is required is the ability to make some huge winnings and a few little losses, which is exactly what we'll get if we stick to our guns and sell our losers. Even if just half of your deals went your way, you'd still earn a ton of money since your winning trades would dwarf your losing ones. And you want a lot of money, don't you? Then continue reading.
Identifying The Main Trend Is The Key
The first step in choosing which cryptocurrencies to invest in is to determine the general market condition. Many traders fail to see the forest for the trees because they get caught up in the details of picking an entry point for trade and overlook the fact that the market's mood is strongly skewed against any prospect of success. There are three primary market states:
COPYRIGHT_WI: Published on https://washingtonindependent.com/choosing-your-investment/ by Paolo Reyna on 2021-12-30T02:49:47.223Z
The bullish tendency (bull market) or bearish trend (bear market) (in a trading range).
You may earn a lot of money by investing in cryptocurrencies while the market is rising. Long-term profits may still be made even when the market is going down or in a flat position.
Checking Patterns From Your Analysis
Fundamental analysis and technical analysis are two of the most often used methods of analysis in trading. The real value of an asset is studied by fundamental analysts, who look at the underlying elements that influence a stock's price. Because it's so difficult to predict which cryptos will go on to become major players in the future, analyzing cryptos is far from an exact science. It's all too subject to the whims of the public.
Technical Analysis
It is the study of pricing trends that are seen in several marketplaces and across time. As a result, Schabacker's book was an astounding piece of work that displayed hundreds of patterns and explained what they represented before PCs were even invented. To this day, despite the fact that hundreds of technical analysis textbooks have been created since Schabacker's time, many analysts still rely on his work. His work is referred to as classical charting.
Fundamental Analysis
It is simpler to appraise a company that has issued stock. A company's quarterly or half-yearly balance sheets and annual reports are produced by the company. And these are where fundamental analysis comes from. There's a lot of great information to savor. Some investors specialize in locating small businesses that have been neglected by the larger banks since they aren't on their radar. It's possible that these firms are undervalued because no one has noticed how inexpensive their shares are.
Summary
Choosing your target is not all about "because I think this company/crypto will do good in the future." Rather, it's about using the information presented in front of you. Using patterns and analysis can help you choose your target wisely. Don't just pick companies and cryptocurrencies from the list. You need reliable data to be able to profit big from your trades.
So, if you are looking for the best strategy to choose your trades, here it is.
About The Authors
Paolo Reyna - Paolo is a senior at the University of Illinois at Urbana-Champaign, majoring in International Studies with a Latin American emphasis. During the fall semester of 2012, he had the opportunity to study abroad in Peru, which piqued his interest in international growth. He learned about the disparities that impact indigenous peoples, got a taste of Peruvian culture, and improved his Spanish skills. Mitchel interned with the Chicago Council on Global Affairs, conducting research on food security in Latin America, after being inspired by his foreign experience. He wants to work in international development and for a government department, writing legislation. He loves playing intramural basketball and practicing for the Chicago marathon when he is not thinking about current events in Latin America.