#MyTradingStyle

Buying from the Bottom

The strategy of buying from the bottom is the cornerstone of any successful trader; when the market experiences a sharp decline and asset prices hit their lows, a precious opportunity opens up for you to enter trades at an attractive price, enabling you to achieve significant profits when the market rebounds. However, do not be fooled by the drop—purchases should be calculated within a comprehensive risk management plan, with a fixed risk ratio (1-2% of capital for each trade) and predetermined stop-loss and take-profit points.

After seizing the opportunity at the bottom, patience comes into play: trading is not a race to benefit from any short-term movement, but a journey that extends over the duration you see fit. Choose your time frame based on your style (#MyTradingStyle): a day trader for quick gains, a swing trader to hold positions for days, or a long-term investor based on strong fundamentals.

To enhance your decisions, use technical analysis tools—such as charts and indicators (MACD, RSI, moving averages)—to identify reversal patterns and measure market momentum, alongside fundamental analysis that tracks economic news and supply and demand data. Sentiment statistics and the level of institutional flows can also provide you with an additional indicator for timing your entry and exit.

Capital management and diversification among assets are essential to limit overexposure to a single market.