Back with an educational post to spread the hate! Grrr how I hate crypto I am so angry that I got into trading and soon do not have to work anymore.
I have to bring balance back to the force. Crypto sentiment has to get back to reasonable levels. All this ridiculous fanatical love for crypto has to end, and it will end.
Everyone, but in particular anyone that wants to get into finance, should know the riskier (in apparence) an investment is, the greater their returns will be.
And if an investment main purpose is wealth preservation 100% bullet proof, then the returns will be small.
Applies to Bitcoin, back in the early days, talk about it to random beer belly dude in the road he'll laugh at your face and call it a nerd/geek thing.
Remember late 2017 the stories about beer belly bar owners that invested in crypto and were accepting it as payment?
We got to the other extreme where every beer belly random dude that didn't even go to school thinks he knows how things work and is persuaded crypto is the "next big thing". Every one is SOOO persuaded it is the future and will 100% be used. I was working for a bank recently, and in our internal newsletter we had messages saying that "Ok so obvioulsy crypto will be the new currency, there is no doubt about that, but which one? We think it will be issued by governemnts bla bla bla".
EVERY ONE thinks he is a visionary (10 years after the thing is created...). EVERY ONE thinks crypto is this "huge revolution".
Well guess what? It is not. It will fall, and all these people are going to start thinking very very negatively of it. I will be the FIRST ONE to tell you when we get to excessive negativity (some worthless crypto's can never reach a point where the negativity is excessive: it would have to be infinite as their value is truly 0).
NOTHING IS FREE. If something is free, then it will get noticed and the rentability will go down suddenly.
The more risk there is, the higher the payout. The safer it is, the lower the returns. Take that home.
Every one thinks crypto is a FAD and a joke and it is almost certain you will lose your money = incredible reward.
Every one thinks crypto is awesome and will change the world and you will become rich = garbage reward. NEGATIVE reward even (you lose money).
Applied to trading Forex and Commodities: if you join a trend early, you will get big returns, BUT you will often be wrong, high risk high reward.
If you join a confirmed trend late, your risk is much lower, but your profit too.
So pick your favorite (or both) and/or decide where you prefer it, the "optimal" point where risk is low enough and returns big enough for you.
This is why we can see clearly traders have a use, other than bringing liquidity to the market, it is pushing tradable instrument into reasonable levels, either by going long when they are too low, or selling when too high. See? We are not totally useless :)
And this is also yet another reason why Bitcoin priced a few hundred dollars makes the most sense: it spent years at that price, when people were being more reasonable about it. It was not this "mad scientist" thing anymore. You could talk about it without looking like a nutcase living in mum basement with an aluminium hat. 500$ my highest probability target long term. 5$ Litecoin.
I almost forgot to bring my dose of hate that makes people cry:
What do you think will happen about all the crypto's (not even talking about 90%+ ICOs that are outright scams) that were born during the big bubble of 2017?
Where is their bottom? They did not exist during the "reasonable" times, so their price at that time was 0 and they have no innovator phase. I will let you figure out what that means :)
www.ou.edu/deptcomm/...ps/99A2/theories.htm
I have to bring balance back to the force. Crypto sentiment has to get back to reasonable levels. All this ridiculous fanatical love for crypto has to end, and it will end.
Everyone, but in particular anyone that wants to get into finance, should know the riskier (in apparence) an investment is, the greater their returns will be.
And if an investment main purpose is wealth preservation 100% bullet proof, then the returns will be small.
Applies to Bitcoin, back in the early days, talk about it to random beer belly dude in the road he'll laugh at your face and call it a nerd/geek thing.
Remember late 2017 the stories about beer belly bar owners that invested in crypto and were accepting it as payment?
We got to the other extreme where every beer belly random dude that didn't even go to school thinks he knows how things work and is persuaded crypto is the "next big thing". Every one is SOOO persuaded it is the future and will 100% be used. I was working for a bank recently, and in our internal newsletter we had messages saying that "Ok so obvioulsy crypto will be the new currency, there is no doubt about that, but which one? We think it will be issued by governemnts bla bla bla".
EVERY ONE thinks he is a visionary (10 years after the thing is created...). EVERY ONE thinks crypto is this "huge revolution".
Well guess what? It is not. It will fall, and all these people are going to start thinking very very negatively of it. I will be the FIRST ONE to tell you when we get to excessive negativity (some worthless crypto's can never reach a point where the negativity is excessive: it would have to be infinite as their value is truly 0).
NOTHING IS FREE. If something is free, then it will get noticed and the rentability will go down suddenly.
The more risk there is, the higher the payout. The safer it is, the lower the returns. Take that home.
Every one thinks crypto is a FAD and a joke and it is almost certain you will lose your money = incredible reward.
Every one thinks crypto is awesome and will change the world and you will become rich = garbage reward. NEGATIVE reward even (you lose money).
Applied to trading Forex and Commodities: if you join a trend early, you will get big returns, BUT you will often be wrong, high risk high reward.
If you join a confirmed trend late, your risk is much lower, but your profit too.
So pick your favorite (or both) and/or decide where you prefer it, the "optimal" point where risk is low enough and returns big enough for you.
This is why we can see clearly traders have a use, other than bringing liquidity to the market, it is pushing tradable instrument into reasonable levels, either by going long when they are too low, or selling when too high. See? We are not totally useless :)
And this is also yet another reason why Bitcoin priced a few hundred dollars makes the most sense: it spent years at that price, when people were being more reasonable about it. It was not this "mad scientist" thing anymore. You could talk about it without looking like a nutcase living in mum basement with an aluminium hat. 500$ my highest probability target long term. 5$ Litecoin.
I almost forgot to bring my dose of hate that makes people cry:
What do you think will happen about all the crypto's (not even talking about 90%+ ICOs that are outright scams) that were born during the big bubble of 2017?
Where is their bottom? They did not exist during the "reasonable" times, so their price at that time was 0 and they have no innovator phase. I will let you figure out what that means :)
www.ou.edu/deptcomm/...ps/99A2/theories.htm
Get ready for the short squeeze. Always one before a big drop.
Destroys FOMO traders and makes a wonderful short entry for smart money.
It would also be a break of the 50 DMA. I don't know if it's the best idea to short at 7150 there... Withotu SL then, be ready for 8k
Weekly 50MA is so far, but weekly 20MA is not. Around 7500$.
There is often so much overcutting, which makes trading crypto bad...
Since you get much better risk:reward elsewhere for similar setups...