Twenty years ago, people did not pay much attention to interest rate cuts.
Currently, due to the background of QE, coupled with the knowledge that many people will watch the data to enter the market, data releases have become so important.
If Trump can completely influence the Federal Reserve, leading to a new round of QE, coupled with America's debt issues, there will be many operations to discuss going forward. But today, we are not going to talk that deeply.
Returning to the beginning, since current data affects the market, many people will take advantage of data releases to make a big move. But for those who have done long-term trading enough times, they should notice that if today is a bull market, then with positive data, the gains will be compounded; if it is a bear market, positive data will cause a bounce, but shortly after it will continue to trend bearish. The reverse is also true.
This is a simple trend judgment.
There is a very apt description for stock cancer: if you see it slanting upwards, that’s a bull market; if it’s slanting downwards, that’s a bear market. If you ask a child to show you, they will be able to do it.
It's that simple.
To trade trends, you need to have sufficient capital. However, the crypto market is a place that extremely encourages switching trades. Just like other markets with less capital, many coins have low liquidity, and a quick surge can immediately encounter a sharp turn. This presents an extremely profitable opportunity for many short-term traders, but not for long-term positions. If you are also good at working closely with data, congratulations, you must be a good player in the crypto market.
I am better at trend-type trading. The reason is as mentioned before: I enjoy working, like to do things outside of trading, and I don't want to be disturbed by market data while handling clients, on vacation, being creative, dating, or writing this pointless article. If you are like I used to be, slowly making a few hundred U from salary, not being able to execute trend trades means you don’t have enough profit. You can only earn money from trends that occur a few times a year, which is really super painful (leverage must consider risks, how to do it needs another article).
Therefore, I am super envious of short-term traders. After learning how short-term traders operate, I found it very helpful for long-term trading.
In short, data is the game that everyone is currently playing. It's not that complicated to look at trends. But no one knows what games will be popular in the future; only by staying in the market long enough and collecting various information in large quantities can one find opportunities faster than ordinary investors.
Wishing everyone great wealth and prosperity.