Compound Interest and Profit-Loss Ratio: BTC and ETH are Prosperous
market news
secondary title
market news
1. The code developers of multiple projects have decreased, and the proportion of EOS active developers has dropped the most
The blockchain developer report for the second quarter of 2020 shows that EOS is facing the problem of continued loss of developers. Affected by COVID-19 and other factors, many projects have suffered from the loss of developers. The number of active developers of EOS, BCH, and TRON has decreased by 86%, 63%, and 51% respectively, while the number of developers of EOS may continue to decline.
2. After the upgrade of Ethereum to version 2.0, miners may switch their mining machines to other networks
3. Research: The currency value of the U.S. dollar changes inversely with the currency value of Bitcoin
Market Analysis Researchers at Sukkur IBA University conducted a study on Bitcoin. The research involves the relationship between the Bitcoin Sentiment Index (BSI) and Bitcoin earnings, volatility, and the value of the U.S. dollar. Using an econometric model, the researchers found an inverse relationship between the BSI and Bitcoin’s volatility, and the inverse relationship between the dollar value and Bitcoin’s value. But the U.S. dollar is based on an inflation model, and Bitcoin is based on a deflation model, which is one of the reasons for the reverse change in the value of the two currencies.
secondary title
Interpretation of market newsThe development and changes of market fundamentals are the basic anchor of trading psychology, which is the most important basic value in future expectations.
This is what all financial games and Ponzis have in common. The difference lies in the legal definition of subjective will. For this, you can refer to the recent case of fraudulent insurance on air tickets.
BTC market analysis
secondary titleBTC market analysis
BTC continues to operate in the 4H center, and the daily line is also in the process of forming a larger rising center.
At this stage, 9300 still has a red line. As long as it runs above this red line, we all choose to buy long.
（2）Why didn't we do the analysis below the 1H cycle?(1) Our level is not enough. The reason for this is that the lower the level is, and the market has too many fluctuation factors, there will be too much interference and too much friction cost;
（3）The profit-loss ratio is not enough, the smaller the level, the smaller your profit space,So the profit-loss ratio is not enough;
The friction cost is too high,
Everyone has heard of positive compound interest, but may not have heard of negative compound interest.The flip side of gains - losses.
butThe power of compound interest is undoubtedly enormous, and Berkshire is the best miracle.but
Losses hurt more than compounding
. For example, if A earns 16% for 10 consecutive years, and B earns 20% for 10 consecutive years, but loses 15% in the 10th year, whose cumulative return is higher?
The average ROE of A shares in the past 15 years is 7-8%. The performance of the stock market in the past 15 years has not exceeded the profit performance of the company itself. And due to the existence of various frictional costs such as commissions and taxes, the returns to investors are generally lower than the returns to the overall profits of listed companies.
therefore,If the bid is too high in the investment, the implicit assumption is that the company I selected must achieve high growth, and there are many good expectations and market followers, but the cruel fact is that it is impossible for every company in the overall market to achieve high growth.therefore,
So, the best deal is the one for less!
ETH market analysis
secondary titleETH market analysisSince the Federal Reserve and OEDC lowered global economic expectations, ETH broke down from 241 to 226, and our stop loss position is set at 224.
Due to the good position management and the closed loop of the replenishment strategy, our profit-loss ratio has risen from the initial 2 to close to 5
, Friends who don’t know logic, see the article the day before yesterday.Now the center of ETH is running in the range of around 233, which is lower than the center of the previous center around 242, but it is still running in the center, so we continue to see more.
Because there is a chance of winning the profit-loss ratio, so continue to hold the existing position, do not make any moves, and reduce friction costs.
secondary titleXRP, EOS, BCH, LTC market analysisThe "chicken heads" are all waiting for the "dragon and phoenix" to take off, and then follow suit;
Therefore, under extreme market conditions, you must not be a "chicken head" variety, only dragons and phoenixes can jump in the abyss and rise against the wind.
