Almost everyone who invests in cryptocurrencies hopes to receive high returns. Even Conor Kenny thought the same thing when he invested for the first time.
However, his ROI wasn’t as high as he had expected. Conor Kenny’s initial stint in crypto trading may not have provided him with the returns that he had imagined but it opened doors for him to learn about the market. He wanted to know why he couldn’t succeed.
This quest to look for answers made him study the market thoroughly. Today, he is not just a successful investor but also runs a YouTube channel where he shares tips and updates of the crypto market. But how did he manage to grasp the nuances of the market so quickly? Here’s a quick overview of his strategy.
When followers ask Conor about how he manages to invest successfully so consistently, he says that he focuses more on technical analysis. “Technical analysis, to me, helps to evaluate a currency based on past performance, rather than on news or other external factors. This information is helpful in predicting future price movements, as well as in identifying potential entry and exit points for trades. Initially, I used a combination of technical and fundamental analysis when making decisions about when to buy or sell a currency. Over the years, I’ve found that technical analysis provides a more accurate picture of the market.”
He also said that he pays attention to three things while technically analyzing a currency:
i. Fibonacci retracements – This analysis is based on the Fibonacci sequence, which is a series of numbers where each number is the sum of the previous two. Conor used this tool by drawing a line from the high point to the low point of a recent price move, and then marking the Fibonacci levels of 23.6%, 38.2%, 50%, 61.8% and 100%. These levels can then be used as potential support and resistance levels.
ii. Moving averages – Apart from Fibonacci retracements, Conor also used moving averages to generate buy and sell signals, as well as to set stop-loss and take-profit orders. “When the market is in an uptrend, the moving average line will slope upwards; in a downtrend, it will slope downwards. A crossover occurs when the moving average line crosses above or below the price action, which can be used as a signal to buy or sell,” he said.
iii. Bollinger bands – Another trick that Conor used while trading was to keep an eye on the Bollinger bands. Bollinger Bands consist of three lines: an upper line, a lower line, and a middle line. The upper and lower lines are typically set two standard deviations above and below the middle line, respectively. When the market is volatile, the Bollinger Bands will expand, and when it is quiet, they will contract. Conor used Bollinger Bands to identify potential buy and sell opportunities.
While these strategies worked wonders for Conor, he feels that they can help others succeed in the industry also. It took Conor years to become a popular figure in the crypto industry. Today, he has thousands of followers on YouTube and Twitter. His updates on the crypto market and investment tips are making a difference in the lives of many investors.
Keep up with the top stories from Reader’s Digest by subscribing to our weekly newsletter.