Topic: Investors need to know about charts reading too (Read 176 times)

knowledge is key in investment. reading and interpreting of chart and its flow is important in investment. not all might know how to read a chart or interpret it. but that doesn't mean that one shouldnt notice things that affect the market. and charts help in educating individuals on when to buy or sell. especially long term investors. though some will argue that they dont think chart is necessary, respect thier views. how do you now know when to buy or sell if you do not know the trend?. knowledge is key. knowledge in all its form.

Not really, when you are investing in coin and well aware that it's going to stay, you just dca, most simple method.

There is plenty of websites, article, and video tutorial about this. Also, I think most of the top exchange has their dedicated educational section for newbies. An investor can invest only by identifying support and resistance level. There isn't any necessity to complicate things by memorizing the name of all the candles and chart patterns because only good money management can save a newbie from the harsh environment of the crypto market. Without money management, all those chart analyses will be a calamity.

So my suggestion for the newbie is to develop proper money management first before marking the chart.

Without chat, it will be difficult to know the price history of bitcoin. If the price history is not known, how can the new investors know when to buy bitcoin, it will be difficult for investors. But for investors that as already known the price history, they do not need chat in my opinion, all they need is the all-time-high, the extent of correction (which they can know throught the recent price if compared to all-time-high). With this, an investor can know the right time to invest. But this is based on long term investment. But, above all, it is good for investors to know about chats, but not much about the technical aspects that traders are using.

You are not wrong, but some investors, especially new investors can decide to just know the price history of bitcoin and also know the market worth (marketcap) which can easily be revealed while using chart sites like Coinmarketcap. But if investors will track price using chart, it would be in a range of years and not minute, day or week used by traders.

It is as easy as bitcoin all-time-high price is $69000, its price recently is at 40000, that is $29000 correction. This is indicating a good time to buy and hold it for the next 2, 3, 4 or more years. Do I need chart for that? Obviously no. It all depends, you can not expect people that follows the price of bitcoin over long period of time to use chart before they invest, all information needed can be seen as they are seeing the price of bitcoin daily or weekly.

Just learn about trading and understand the nuances of the crypto world, there's a lot of information on the internet and books. This is the only way to be successful trader or investor, apart from gaining experience by actually doing it. Don't focus on getting rich quick. Don't be greedy! Think logically, objectively, and do your homework. Good luck!

If you are going to trade, that is, to buy and sell depending on how you predict the price is going to go, you'd better know about charts. Even if you are going to be a Bitcoin HODLer, knowing a little bit won't do harm but talking about crypto in general and chart reading is usually a recipe for disaster.

This is good advice but necessary for every investors, there are different reasons why people invest in crypto projects, some wants quick gains, some just trying it out for the first time so they FOMO'ed in, some are in for the long run, like HODL for many years to come, reading charts is very good, you can easily know when to get out and when to get in again.

It's good idea that you analyse the chart If you're particularly referring to an investors in crypto, so I agree with you, but it's not going to be a necessity for all but for some investors who find it interesting to know when it's good time to buy.
For those investors who doesn't have that time to spend on chart can employe the services of professional Chart analyst to do the job for them.

I'm curious from the OP's point of view about how strongly "investors" hold the asset for a certain amount of time until their investment grows many times over? Do investors really need to look at charts when bitcoin is only 1-2 years old? What I understand is that investors are only looking for profit (no target price, no time bound), they will not sell for a loss because of their belief in in-depth research that is more than just price history. They are different from traders.

What you described here is trader-investor kind of indulgence. The whale investors would think they don't necessarily have need for charts (but I dare say that it's necessary). It's not because they ordinarily wouldn't want to but because reading charts is a complex art. Trading is more difficult than investing. In trading, you've to preempt the market on short notice while investment is expectedly done on long-term target. If trading were as simple as buying into projects for hodl, every trader should be well made. I encourage any investor who has free time on their hands to also go learn charting too. It helps prevent one investing at the top of price or taking profit at the bottom. As an investor, you may not necessarily look at the chart of the project you want to buy to get in, just look at BTC chart (which is always available) and you will get the message in rough.

Investors bought an asset not because the price and chart, but they bought because of the utilities and long performance. They didn't care with chart because they already spend to much time to analyze the asset and speculating how much it will worth on the future. Unlike traders they're only analyze for a day, week, month etc which is depends on the chart and market, but not looking for long term.

It's possible an investors learn chart movement, but it's not worth since they invested a lot money but still looking for tiny % profit.

Real investors don't actually need to be proficient in chart reading. There are more important factors that decide their success or failure such as good knowledge (at least on most fundamentals) then strong belief; strong mentality to go through market hype and fear; well discipline in order to don't self-break initial good plan.

Nice point! Trying to find an absolute bottom or top is a most common trap for newbies. The best approach is using DCA for both accumulation and profit taking. Then you will not miss the train. Downward trend, let's use DCA for your accumulation, more seriously in bottom range. Upward trend, let's take profit partially at different price range then you will never miss party.

If you could just "know about the charts" and successfully predict the price movements, everyone would be a trader. In reality it's not that easy. Studies show that amateur traders are overwhelmingly losing money. And those who make money are the whales, the manipulators, the insiders, the bots that react to market in fractions of a second.

Trying to find the absolute top or the absolute bottom can go wrong if you wait for to long and miss out on all opportunities. There's a saying "don't let the perfect be the enemy of good". It's enough to sell somewhere not too far from top and buy not too far from bottom to make a good profit with Bitcoin.

Would you rather invest into something you even don't know about?

Before buying or investing into an asset, one has to carry out some due diligence and that includes how the asset has been performing overtime with the help of price charts. Anything short of that is just gambling.

Difference between trader and investor is the time they use to buy and sell. Investors need to be aware of the market cycles if they are more low frequency swing traders. But if we are talking about coins that go 10000x in the future, those early swings in few years don't mean anything. They will seem like a blip before the moon.

The chart is an indicator of your potential profits or loss. Most aren't many technical guys who just see the chart during trading. It's easier to get an idea to buy and sell your coins. It's all about reading the history of the coin that you are trading. But keep in mind, just a chart isn't enough for a professional trader, they need to research more deeply about the project. That's how they secure their investment. The chart is all about basic trading to realize trading history.

Traders are investors too and the same with holders.

It's all about the thing you do and you must know what you're doing. So if it's about investing in the crypto market, whether you're new, experienced, holder or not.

You need to have an idea on what you're going to do and what to face. I agree to what you say that everyone needs to have an idea about looking at the charts. Don't worry, we're all forced to do that to monitor our investments.

Monitoring charts is not a habit that most long-term investors do in my opinion, they don't really like charts because their main target is profit. Charts are needed, Yes they need to analyze it but only when they want to invest temporarily after that they just wait for the profit alarm to sound. Charts are much more often monitored by a trader to profit from his trading strategy. But I don't blame you for saying investors need to understand charts too.

I can get away by just buying and holding for my dear life until 5 years later, many did this and cut themselves off looking at charts and market situation every day, a holder won't mind staying away from charts and it won't stop them from turning into millionaires, thanks for the advice.

If you could actually pull it off in the end, then sure. But that's a huge if. Would I really call it a "need" though? Definitely not. I'd personally definitely prefer trying to earn money elsewhere through businesses and such rather than to stare at charts.

Not bad at all if you want to spend your time reading and analyzing the price chart, and using this tool for charting and proper candlestick pattern which is much better.

But if you're a long-term investor, you don't need to do this, all you have to do is set and aim for profit, once your profit were there, that is the right time to sell your crypto asset and have your profit.  I believed that long-term investment, it's stress-free.

As an investor you can get away without looking at charts (especially if you goal is just to accumulate - which it is for some).

To not buy the top or know when to sell then you'll obviously be more accurate if you couple in some basic TA - but make sure you can backtest it too. This might become more like swing trading though.

I always thought that reading crypto charts should be for traders only but I was wrong all along, knowing more about candles and other stuffs about charts can tell you when to actually sell your coins for profits and also when to buy back, it will also safe you from buying at the top, i made this post here because many newbies always find their way to this thread first, after learning about crypto and wallets make sure you start looking into charts reading or even crypto trading, its for your own good.