โ ๏ธ Warning Announcement for Traders:
Buying during a downturn is not profit! Don't fall into the "cheap price trap".. Real profit begins with confirmation of the reversal.
๐ Strategy for buying during market downturns (confirmation of the reversal)
Avoid mistakes:
Buying during a sharp decline often leads to further losses instead of recovery.
The continuous decline in the price of the currency may be an temptation to buy at a "reasonable price" before it drops further. One should avoid taking risks and buying hastily.
Optimal time to buy:
Wait until the price shows actual confirmation of an increase.
Buying should occur at the first point of increase or the second point of increase, after the currency shows a relative increase from its lowest point.
Analytical Note:
This strategy is known as Confirmation Buying in technical analysis.
Advantage: Reduces the risk of "catching a falling knife" (i.e., buying during a sharp decline).
On the other hand: It may cause you to buy at a higher price, as you wait for confirmation of the rise before entering the market.
This is how good and professional traders and market whales operate.
