The cornerstone for any successful trader; when the market experiences a sharp decline and asset prices hit their lows, a valuable opportunity opens up for you to enter trades at an enticing price that allows you to achieve significant profits when the market rebounds. But don’t be deceived by the drop—buying should be calculated within a comprehensive risk management plan, by setting a fixed risk percentage (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 benefit from any short-term movement, but a journey that extends over the timeframe you deem appropriate. Choose your time frame based on your style (#MyTradingStyle): a day trader for quick gains, or 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 momentum.