Buying from the Bottom

#MyTradingStyle 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 lowest, a valuable opportunity opens up for you to enter trades at an attractive price, enabling you to achieve significant profits when the market rebounds. But do not be deceived by the decline—purchases must be calculated within a comprehensive risk management plan, by setting a fixed risk ratio (1-2% of capital per trade) and determining stop-loss and take-profit points in advance.

After seizing the opportunity at the bottom, patience comes into play: trading is not a race to capitalize on any short-term movement, but rather a journey that extends over the timeframe you see fit. Choose your timeframe based on your style (#MyTradingStyle): a day trader for quick gains, or a swing trader to hold trades 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, along with fundamental analysis that tracks economic news and supply-demand data. Sentiment statistics and the level of institutional flows can also provide you with additional indicators for timing your entries and exits.

Capital management and diversification among assets are essential to reduce excessive exposure to a single market.