Ethereum : Cycle of market emotions.
Updated
ETHUSD logarithmic scale.
Trade active
Trade active
Information is the most valuable of well-known goods. I share all of this information with my Family members for free so don't forget to like and subscribe.Note
Keeping your emotions in check is a key trait of successful investors.Every market contains a strong embedded rate of return. This return is directly related to the amount of risk in that market. In the long run, both the risk and return of each market remain remarkably stable in real terms. So, you can count on obtaining the appropriate level of risk in each market by exercising a disciplined buy and hold strategy. That’s the good news.
The bad news is that all markets go through cycles in the short run. This volatility is the price we pay for returns above T-Bill rates. The duration and amplitude of these swings is one very good measure of risk. Market cycles are impossible to predict. Their price movements are essentially random. But, we know that markets will neither continue up indefinitely, nor fall to zero. In the past they have always “reverted to the mean.”
Capitalism would not work if it were not so. Try to imagine a world in which investors could buy only assets that had gone up with assurances of continued profits. Or, that by avoiding asset classes that were depressed, they could prevent any future losses. All capital would quickly flow to the current successful asset classes, and the rest might as well close up shop because they would never attract any capital. The world economy would collapse, and we would all be back grubbing for bugs to eat.
In the real world, investors that bought only appreciating assets would quickly find them “reverting to the mean”. Investors would find themselves continuously buying high and selling low.
Investors understand this on one level, but on another level their emotions can short-circuit their common sense. If investors allow their emotions to take them on a roller coaster ride, they can quickly become their own worst enemy.
In a multi-asset class portfolio, something is always going to be under-performing. Under-performance quickly generates remorse and regret. These emotions in turn trigger an almost irresistible impulse to buy and sell at exactly the wrong moment. Just when we, and everyone around us, are tempted to give up in disgust, may be the point of maximum opportunity. Likewise, when the market has gone up for several periods in a row and we are all giddy, we may be at the point of maximum risk.
Note
CRYPTOCURRENCY MARKET ANALYSIS.
What do we have at the moment?
1.5 months of flat in the triangle in the corridor of $ 6000-6800, in which it's dangerous to trade, unnecessary actions in which there is a large proportion of probability, chance and luck, or bad luck. Well, if you go to zero with your trading BTC 0.37% . The further trend is uncertain, it keeps everyone in suspense. Trading volumes decrease, hence the volatility .
From 19700-19900 the maximum level of correction reached 5800-5700, which is ~ 70% lose. For any asset during the fall of its market segment, some correction is achieved and 90% from the highest point, as some altcoins did. Therefore, there is a probability of falling to levels below $ 2000.
A good support was formed at the level of $ 6000-5800, in the case of penetration of which we can expect the next step of correction $ 4800-5000 (the level of logarithmic support). You can also consider the opposite course of events when the level of 7400 is broken through with volume and without manipulative support, as we observed recently with Tether. There are Altcoins, which showed good profits during September-October, which is a good indicator for growth. Coins are mainly at the bottom relative to their peaks and are very attractive for long-term investment. You have to be very careful here, since most of the projects are fraudulent, many simply will not survive and the strongest will remain on the market and these will be units, we have not yet seen global cleansing.
How long have you heard about the global financial crisis? Yes, more than 10 years have passed since 2008 (the average complexity of world crises is about 8 years). World indices probably finished the growth cycle and began to fall, gold 0.40% on this background is growing. In general, the classic picture. The bubble should burst and begin to conquer new peaks again. What will happen to cryptocurrency at this time? Market capitalisation is small relative to other financial markets. In a panic, the bulk of people take the money invested from assets. Literate people at this time begin to invest and buy when blood flows through the streets.
Think about it all carefully, I do not agitate you to think like me, but you need to take into account the factors and draw conclusions from them. Opinions change. I really respect your support, you can express it with your like, repost, comment and subscription. Thank, good luck!
Trade active
Trade active
Trade active
Trade active
Trade active
Note
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.