Timing in the crypto market is important
Everyone knows that there are different types of trader in the markets (day trader, intraday trader, scalper, etc), but few really understand what that means.
When market uncertainty strikes
When we have so much time in a bear market like the current one, it is normal that the uncertainty causes us to make mistakes when investing and trading, because we all want to make money and the market does not seem to coordinate in a way that we can get it at the time we think.
But it is there where the preparation that we have as traders plays a preponderant role, in order to be able to operate the markets appropriately, without errors of appreciation.
Because the market will never act exactly in the terms in which we believe or want it to act, but rather it will do so on its own terms, at its own rithm and at its own time.
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Market timing
So, knowing that the market has its own times to act and that these times are unpredictable in the strictest sense of the word, it is then that the only thing we can do about it is to relax a bit, and use technical analysis indicators to make probable projections of what the market will do.
Said projections have a probable, but not absolutely certain, time frame, so when we make an entry in the market (whether we buy or sell any asset), it will happen that we are like the fisherman who throws his hook into the water with a good bait, but he does not take it out immediately, because he knows that it will take a while for the fish to bite the bait and finally be caught.
Well, the same thing happens to us in trading, and the fish in our case is the projected profit. That is why when trading it is essential that we project specific points for the take profit (also for the stop loss), so that we know exactly the profit that we project. Because simply entering a trade without having an idea of the profit that we expect, will cause us not to take profits when we should.
On the other hand, when we have a projected profit, we will simply take it whenever it happens (unless the market hits our stop loss point sooner).
The fact is that timing is important, because being traders, we can also define the approximate time in which we project to obtain profits, but this being in a flexible way, for everything explained above.
The current market is bearish
The crypto market is bearish, that is for sure, but we can project, based on the indicators, when this is likely to change. However, for that, we must constantly be watching on the charts of crypto assets and the fundamentals that are taking place in the markets.
Because if we correctly understand the concept of timing in the markets, the path to financial success will be much easier to follow.
What do you think about the topic discussed? Please comment.
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