Analysis
Analysis is very important for everything thing, before jump in anything you have to do analysis about this things, so that you can understand the potential of that things. I am sure you need a analysis in your life for example, let's say you want to make friends or girlfriend before that you have to analysis him or her so that you can understand him or her. Let’s say that you want to invest in some cryptocurrency or company while you are trading before that you have to do a analysis so that you will know, what might happen in the future if the company is doing good now and before then it’s pretty much sure that it will do same like before and now but it’s not sure.
Here, i am going to talk about analysis in investing, believe me or not before jump into anything you have to do a analysis, i recommend you to don’t do anything without analysis because i have done lots of mistake without analysis, i just did lots of things in my life and i learn from this mistake. I am sure it happen to everyone.
If you are just came to investing, just trust me without doing analysis please please don’t invest your hard money. It’s your money, i know if you earn then it’s make you happy but what happened if you lose your money even 10 cents, hurt you. There is two kinds analysis that you need before jump into the investing market. They are given below
- Fundamental Analysis
- Technical analysis
Fundamental Analysis
Fundamental analysis is the analysis related to news, company revenue and other factors which might effect on the price of this company or cryptocurrency. Fundamental analysis is essential part you have to do homework before, it is highly effect on the price of company, if you planning to jump into cryptocurrency market fundamental analysis is very very important than technical analysis, for example if one news come to the market the price of the coin will skyrocket, or it might go to low or decrease price. For example, around December 2018 there was a news that ripple (Cryptocurrency) will added to the coinbase (The largest website to buy a bitcoin, bitcoin cash, ethereum and litecoin) the price is skyrocketed from 0.25 USD to around 3:50 USD within 3 to 5 Month.
Picture: Price of ripple from Oct 5 2017 to January 28, 2018 (Source: Coinmarketcap)!
Another example is Zclassic, The price of Zclassic on sep 2017 is around 1.45 USD but after few month the price is sky rocketed to 230 USD on jan 7, 2018, lets say if you only invest 1000$ on 2017 Sep and after that if you sell this coin at jan 7, 2018 they you would make a 153, 000$ USD. At least by this money you can pay your fee, if you are student. Billion, billion money is coming in and out in cryptocurrency market.
Picture: Price of Zclassic from which shows that price is just skyrocketed from 1.45$ to 230$ !
This price is skyrocketed because of the hard fork of the Zclassic, who hold the zclassic that they will get the Same BTCP during that time. This is the fundamental effect on the coin.
Technical Analysis
By investing in the past char, and then the process of predict the market is called technical analysis. This is really good tools to analyze the price chart of company or cryptocurrency if you want to get good profit you need to combine fundamental and technical analysis. This is not a bullet proof because you know, nobody can know future but its seem that this is worked around 70%. There are lots of technical analysis was created in the past. You have to decide which type of technical analysis you are going to use, and please don’t trust 100% technical analysis.
“Please, try to control your emotion while you are trading, its hard but you have to.”
There are three types of chart that are popular to understand technical aspect of price that they are
● Line chart
● Bar Chart
● Candlestick chart
The example picture of them are given below:
Picture: line Chart (Source: IG Academy)
Picture: Bar Chart (Source: IG Academy)!
Picture: Candlestick Chart (Source: IG Academy)
To do the technical analysis most professional traders used Candlestick chart because this is really easy to use.
Final Word
There is lots of things to learn, lots of things yes, of course you will make lots of mistake as well i made lots of mistake and i am sure in the future i will make mistake. But what i think is we have to learn from this mistake and we shouldn’t make this mistake again. Then we can make yourself better and better.
For more
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https://www.facebook.com/Cointrader2017/
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https://www.facebook.com/groups/171126873609826/
Link to make a Coinbase Account:
https://www.coinbase.com/join/59af6e9fc308a500a8f9bf45
Contact us: cointrade@cybeman.com