When purchasing an asset, the main goal will always be to obtain a profit.
The main characteristic of all this is speculation, which is simply buying "cheap" and selling "expensive".
Everyone says the same thing, sure buy low and sell high, but when do I really consider it "cheap", well the main characteristics you should consider based on my experience are as follows:
Bearish trend.
Fear and greed index.
Support on higher time frames (1 day, weekly, and monthly).
Historical lows.
With these 4 elements you can have a chance to make profits, a strong bearish trend offers more accessible prices for projects with good expectations.
The more fear there is in the markets, the more opportunities arise, those investors or traders with little patience end up selling and exiting their positions without holding on a little longer.
"Be greedy when others are fearful, be fearful when others are greedy." Warren Buffet
This phrase leaves us with a great lesson, if an asset keeps falling, let's look for a clear support and if it is at a historical low even better, more chances of a rebound, when the bull market arrives where everyone wants to "BUY" you will already have a profit and that is when you should exit, the euphoria of others will be your exit point.
Remember, bear markets are for BUYING and bull markets are for SELLING.
With patience and proper risk management, you can obtain profits, there are always opportunities, you just have to know how to wait and take them when they arise.
