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In Crypto Assets trading, choosing the right time dimension for analysis is crucial. Many Newbies tend to follow short-term Fluctuations, often staring at minute-level or hour-level charts. However, this practice may lead to frequent trading and unnecessary losses.
In contrast, experienced traders tend to focus more on daily and weekly charts. These longer time-frame charts can better reflect the overall trends of the market and important support and resistance levels, helping to make more informed investment decisions.
Overly focusing on short-term price fluctuations may lead to frequent trading, increase trading costs, and potentially result in emotional decision-making. In contrast, adopting a longer-term perspective can help investors stay calm and avoid being misled by market noise.
It is worth noting that different trading strategies may apply to different time frames. However, for most spot traders, following longer-term trends is usually a more reliable strategy. This not only helps to reduce trading frequency but also assists investors in better grasping the overall direction of the market.
In conclusion, cultivating the right analytical habits and trading mindset is crucial in Crypto Assets investment. By following longer-term market trends, investors can increase the likelihood of profit while reducing unnecessary losses caused by short-term Fluctuation.