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In the Crypto Assets market, many Newbie investors often fall into some common thinking traps, leading to investment failures. Here are a few misconceptions to be wary of:
First, excessively relying on market rumors and news. Although information is important, trading solely based on news often leads to failure. If profits could be made just by relying on news, retail investors in the market would have all become millionaires long ago.
Secondly, being obsessed with complex technical indicator analysis. Many investors like to use various fancy indicators and analysis methods, believing that the more complicated the analysis, the more professional it is. However, true experts often pay more attention to fundamentals and market structure rather than cumbersome indicators.
Third, being confused by the high returns displayed by others. The internet is filled with various boastful profit screenshots, but these do not represent the real market situation and should not be the basis for your investment.
Fourth, overly focusing on short-term trends. Many people are addicted to short-term analysis at the 15-minute or even 5-minute level, but this method of operation often carries higher risks and more unstable returns.
Real professional investors usually keep the trading interface simple, focusing mainly on core information such as price trends, trading volume, liquidity, and order books. They understand that most technical indicators are essentially derivatives of price trends, which are lagging in nature, and relying solely on these indicators makes it difficult to achieve sustained success in the market.
Modern quantitative trading firms no longer rely on traditional technical indicators, but instead utilize advanced tools such as order flow analysis and liquidity distribution, and even adopt some more complex high-tech methods. These tools and methods are often unknown to ordinary investors.
To succeed in the Crypto Assets market, investors need to continuously learn and adapt, avoid these common misconceptions, and cultivate a deep understanding and insight into the market.