Legendary trader Peter Brandt offers invaluable advice to traders, including on cryptocurrencies.
In a recent tweet, Brandt stated that outstanding knowledge of technical analysis, indicators and global macro fundamentals might contribute little to trading profitability.
Brandt highlighted the need to know oneself and how emotions can undermine one at every turn. He claims that this is the start of profitable market speculation. Brandt emphasizes the golden recommendation of "know thyself."
Outstanding knowledge of technical analysis, indicators and global macro fundamentals contribute very little toward trading profitability— Peter Brandt (@PeterLBrandt) August 1, 2023
Knowledge of self and the ways our emotions sabotage us at every turn - this is the beginning of profitable market speculation. Know thyself
Trading on the cryptocurrency market, like any other, may necessitate a detailed understanding of market dynamics to maximize profitability. Unlike hodling, which has a protracted holding time, trading involves regular buying and selling.
Trading with emotion has frequently been identified as a barrier to successful trading by various skilled traders. This is because emotional trading has various dangers and can result in a loss of funds.
Buyer and seller sentiment often have a significant influence on cryptocurrency markets, resulting in a "Fear" and "Greed" situation.
This is captured by the Fear and Greed Index, which analyzes cryptocurrency market sentiment on a scale of 0 to 100, with 0 representing "extreme fear" and 100 representing "extreme greed."
Currently, the indicator stands at 53, which reflects neutral sentiment.
Bitcoin drops below $29K
After several days of trading sideways, Bitcoin finally made a move. The leading cryptocurrency fell below $29,000, marking its lowest price in a month and a half. BTC was trading down 1.85% in the last 24 hours to $28,838.
Several cryptocurrencies, including XRP, Dogecoin, Compound and Optimism, were trading in the red in the last 24 hours, falling between 2% and 10%.
According to CoinGlass data, the total value of liquidations in the last 24 hours has grown to $93.84 million. Long positions, predictably, account for a larger chunk — nearly $82.14 million of that total.
More than 34,912 traders have been liquidated in total, with the largest liquidation taking place on Bybit and totaling more than $1.18 million.