General Description

Hello friends in the Project Hope Community. This time, I'm back to share with my friends about investment steps and strategies. Of course, this is still related to financial management. This is the 6th post that I wrote in the Project Hope Community. This post I focus on two aspects. First how to understand the psychology of investment/financial markets and trading with technical methods. These two things are closely related, and must be understood for anyone who wants to invest in the crypto exchange market

Also, understanding financial markets can be interpreted as a basic concept to explore very fundamental information related to the conditions of various types of cryptocurrencies. Because if the various types of crypto assets are good in terms of fundamentals, it can be ascertained that the condition of the crypto will remain stable, even if there is an economic shock. Even if there is a very deep price decline (contraction of the crypto exchange), this type of fundamentally good cryptocurrency will quickly recover to grow again. So that potential losses can be anticipated from the start by understanding the psychological conditions of the financial market.

While technical analysis must be interpreted as a strategy to determine at what price this type of crypto is sold, or bought. Because in truth, technical analysis is only a reinforcement to understand trends in crypto price movements that occur in the crypto exchange market. There are many technical methods and strategies, such as calculating using the move average method, median price, envelopes exponential moving average (EMA) and many other techniques. Those are all technicals to strengthen fundamental results in determining price accuracy and precision.

If I may illustrate as an example to understand the difference between fundamental and technical, it is in the type of "buffalo". Fundamental is to understand the condition of the buffalo well. Such as the level of fatness, cleanliness of the cage, the availability of feed, the mechanism of care and the area of ​​the cage available. While the technical is the tail that moves all the time, both left and right and up and down from the tail itself. While we do not understand the real and setil of the buffalo itself.

Relation of Financial Markets and Trading

As I described in the overview above. That understanding financial markets and trading are like two coins of money, which should not be separated. For investors, they must understand these two things completely and perfectly, so that the wealth that is entered as investment value will not suffer losses. Because speaking of investment, there are only two orientations; profit or loss. And the market is one of the investment instruments that can be said to be "cruel" with high risk.

If analyzed in more depth, if you ignore one of the two aspects. So when you invest you will be stuck in buying crypto at a high price, and conversely you will sell crypto at a low price. Isn't the opposite expected? Likewise, if you ignore the psychological conditions of the financial market, you will be trapped in the condition of investing in cryptocurrencies that are very volatile and fundamentally weak. So that the value of your investment will be reduced and held back for years.

Therefore, it is very important to understand market conditions, both direct financial market conditions and real market conditions. So that we will get a complete condition related to the fundamentals of the instrument that we will invest. After the market information is well understood, the next step is to determine the current price movement of the crypto (investment instrument). If the trend of crypto market movements is increasing, then at that time you just have to wait for the right price to release or increase the value of your investment.

Hope It Is Useful.