Whenever I write something more technical—and less conceptual—about trading in funds, stocks, or cryptocurrencies, questions inevitably arise regarding "magic formulas," or the classic inquiry: "What would you do?"
Well, anyone who follows my writing knows my consistent advice: steer clear of "oracles." In short, avoid those who claim to know everything or possess a ready-made formula for success (this, in fact, applies to all aspects of life!).
When someone asks for another person's opinion, they are, by definition, treating that person as someone of significance. While this might be considered an honor, the person being consulted often forgets that their words have a direct impact on someone else's life.
In The Little Prince, there is a famous line: "You become responsible, forever, for what you have tamed." In a romanticized sense, the word "tamed" (*cativar* in the original Portuguese) is often interpreted as affection or admiration.
However, in the original French version—where the nuances of the verb are more distinct—the term cativar carries its literal meaning: to hold someone captive.
Therefore, the responsibility is real, not merely sentimental. For this reason, I avoid giving opinions whenever I can—that way, I don’t hold anyone captive.
There is another perspective on this—not regarding others, but oneself. In the myth of Narcissus—from which the psychological term "narcissism" is derived—the blind prophet Tiresias makes an enigmatic prophecy at the moment of Narcissus's birth.
When asked whether the boy would live a long life, Tiresias replies:
• "Yes—provided he never comes to know himself (or never sees his own reflection)."
And so, Narcissus grows up—carefully—without ever knowing what his own face looks like. However, after being cursed by the goddess Nemesis for his arrogance, he leans over a mirror-like pool of water, sees his own reflection for the first time, and falls hopelessly in love—wasting away until he dies. For Narcissus, the "vision" of himself was the immediate and inevitable harbinger of his own death.
The pride one feels in being able to help others can sometimes be blinding. Regardless of the honor such a role may bestow, the power to "be more" for the person asking for guidance creates the very same trap that ensnared Narcissus. In this case, however, both the listener and the one being listened to risk their own "demise."
With these caveats in mind (for myself as well as for the reader), let me elaborate:
There are four pillars to consider in any analysis of a trade:
monetary volume traded, strength (or momentum), upward or downward trends, and volatility. Naturally, there is also the traded price and the spread—ah, the spread! It is always the villain for those who do not know how to use stop-loss orders or how to calculate their potential gains beyond the cost of the spread (which acts as a hurdle rate before any actual profit).
Some people work well using a few of these factors, others use all of them, and some rely solely on price, volume, and candlesticks—yes, candlesticks are important.
Beyond all this, there is a crucial factor when conducting chart-based analysis: TIME.
Therefore, the "tip" is to know how to utilize the time frame. Why? Because short time frames can lead to jitters, while long time frames tend to smooth things out; yet, short time frames reveal the battles unfolding in real-time, whereas long time frames point toward where the price is headed in the medium term.
To conclude, I bear no responsibility, as I have not "tamed" or swayed anyone. Everyone is responsible for their own actions—have fun, and remember: only invest what you do not need for your daily living. Only include what you don’t need, for there are more stumbles in this life than successes.
