Japan's Financial Services Agency (FSA) on Wednesday gave the cryptocurrency industry self-regulatory status, permitting the Japan Virtual Currency Exchange Association to police and sanction exchanges for any violations.
This is interesting considering not that many people in Japan (or at least Tokyo) USE Bitcoin (to my surprise). Last time I visited, I saw the DMM Bitcoin billboard but no one was really interested in it.
Let's say you buy a random crypto, stock, etc today, no thought put into it, and sell it in two weeks. The probability of you profiting or not, in theory, is 50/50 (it's actually not as we know bc there are other factors, but because you put no thought into it it's essentially gambling with 50/50 odds).
TA is about finding higher probability trade setups. So you use price action, support and resistance, indicators, etc. to find these setups that instead of having 50% odds, have 60% or 70% instead.
There are no surefire trades. Zero. Every experienced trader knows this. Even if you trade eight 70% trade setups in a row, there is still a possibility you lose every single one. But after 100, 200, 300 trades, you will have made money overall because the odds are in your favor.
That's the difference between trading like a professional using TA, and a crypto manchild who feels he has to always be right with his calls. Professional traders know they will be wrong many times, and that is a fact of life, but they make money in the long run. Crypto manchilds follow other people's calls and get mad at them when their calls are wrong, not realizing they can always be wrong, and start trading based on emotion instead of a disciplined trading plan, leading to constant losing streaks.
That is what TA and professional trading is all about; Putting the odds in your favor. Not the Reddit mentality here of profitting from every trade, and having a magic crystal ball that can guess where the market goes every time. That's impossible and no one is claiming that but people seem to act like it is being claimed.
Far from it. While this is certainly good news, the tax system on crypto profits is horrible. They are taxed as miscellaneous income, rather than capital gains, which means they just stack on top of your regular income and you end up paying 40% or more on your crypto profits.
What Japan really needs to do is set a flat tax rate like they did on Forex (20%). 20% isn't great but it's a LOT better than 40%+.
Well, if you think such news no longer have big impact on prices. A few years ago it would make the price raze up immediately. None the less it's still great news. I only with other countries would see this as well.