The Disappearing Stone
When you examine financial markets and begin to delve into past price action, the complexity of movement and capital rotation becomes rather apparent. Essentially, this produces a type of path. A path that when examined and scrutinized begins to surrender its secrets. A path, where every executed decision can be likened to a stepping stone that disappears beneath one’s foot. As each stone gives way, another emerges.
Highly effective investors and traders are well aware of this dynamic. However, the majority of investors and market participants tend to be rather limited when it comes to how they view and interact with the market. Even in stating this, the majority of readers are unable to comprehend what I am addressing. If you are, as a market participant not practicing certain principles and strategies, it is because you are unaware of them.
After all, who wouldn’t be applying strategies that are beneficial to their portfolio? The simple answer is… ignorance. Essentially, this implies a lack of knowledge and understanding. Therefore, the structuring, dynamics, and decisions that are the building blocks of such strategies are not in the hands of the builder. You can only build with the materials at your disposal.
This is why I have addressed the acquisition of knowledge and experience as essential when it comes to success regarding financial markets. The bull market deception has many market participants feeling rather chuffed with themselves. However, a high tide that elevates your boat is the true driving force in this scenario. What will happen when the Crypto market has been “tamed” by global adoption and institutional domination?
Reverse Reading
Much can be learned by studying previous price action and market cycles. Many are only interested in articles relating to altcoin picks and future gems. However, learning how to accurately read this market is imperative, if you ever intend to lose your training wheels. Being able to make good calls and design solid strategies is a reward in and of itself. Making predetermined decisions is also a good way to operate in any market.
It removes the emotional aspect and ultimately aids in the continuous growth of your portfolio. The structuring of such decisions is solely dependent on a keen and knowledgeable understanding of the market. In hindsight, many can identify the capital rotation that took place in the layer 1 space over the past number of months. The key, however, is to be able to identify this activity in advance.
That being said, studying the past can help to identify the future. Once again, immersion is imperative, if you are to become in sync with the market. Obviously, for many, time doesn’t necessarily allow for this. However, it’s important to somehow gain as much exposure to the market as possible. If you are not learning and then applying what you have learned, you are stagnating.
Final Thoughts
The fact that many Crypto investors repeat the same mistakes with each new cycle is an indication of this being true. They learn nothing new, apply nothing new… and so are only able to repeat the same behavior, despite a keen desire to do things differently. Multi-faceted investment strategies are at the heart of truly successful investors. They have moved beyond “The French Defense”.
For many, Crypto investing is a guessing game, or the result of another’s opinion, or point of view. This is what one must do if they are void of knowledge and experience. The best way to guarantee your future success is to depend on yourself. However, this is not an option outside of progression and experience. I spend a lot of time designing my stepping stone path. I don’t wait for the market, I move in anticipation of what my predictions and extrapolations are pointing at.
The complexity of these paths can vary and need not necessarily be complicated or extensive. However, there needs to be a significant amount of confluence and other indicators in agreement with my thesis. Many choose an investment decision because it appeals to their desires. This is a critical point of failure! Don’t fall in love with an asset. Rather let it communicate its intentions to you.
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.