Ezeetrader co-founder and veteran trader Charlie Burton offered valuable advice on crypto trading in a recent interview. The veteran trader talked at length about the psychological perspective of young traders and shared his opinion on Bitcoin’s consolidation.
Veteran Trader Gives Tips on the Best Time to Cash Out of the Market
Discussing the trends prevailing in the crypto industry, Burton pointed out that many young people are vulnerable to boredom, which can guide their buying and selling decisions.
He asserted that consolidation periods are a normal occurrence in any market and he favors them in cryptocurrencies like Bitcoin.
“Markets by their very mechanism pry on people's emotions. It doesn't matter what the market is, that's just natural behavior of the market. It's a living, breathing thing, and a lot of the time the market's job is to try, and I always say, to try and shake off as many participants as it can.”
Talking about his experience, Burton highlighted that every trader should abide by a certain set of rules that prevent them from emotional decision-making. He noted:
“We are naturally influenced by greed or fear to one propensity or another. So we absolutely need to have some simple rules, but I would also say a lot of visualization is good.”
Burton also revealed the list of indicators that guide his decisions in the market. He said that apart from the daily charts, he consults weekly and monthly charts as part of his “multiple timeframe analysis.”
“If I'm bullish on a market, [I] wait for the retrace. It's not rocket science, and you can either use Fibonacci if you're looking at, if you're a Fibonacci person, for looking for retracements. I like using moving averages,” he added.
How Big Banks Help Gauge Market Sentiment?
According to Burton, predictions from major investment banks such as Goldman Sachs can be pretty handy for traders.
“When Goldman Sachs starts talking about, you know, any market and they start getting really bullish on something, then again, I use that as a warning sign. If the big banks are starting to talk about a market going much higher or much lower then, I'll usually look for reasons why it might do the opposite,” he stated.