Part 10/11:
Understanding this reflexivity allows traders to navigate the boom-and-bust cycles more effectively, managing exposure accordingly.
Final Thoughts: Human Behavior, Not Just Charts
Beyond technicals, successful narrative trading hinges on recognizing human psychology. It’s about interpreting why institutions act the way they do—be it BlackRock's push into RWAs for yield or the AI sector's explosive growth—rather than just looking at the charts.
In essence, traders must become macro storytellers, weaving together on-chain signals, macro trends, and sentiment analysis. Mastering this enables positioning ahead of the crowd and capitalizing on the next big narrative wave.