I will explore the mix of my investment portfolio. Follow me to see how I invest!
The strategy of buying at the bottom is the cornerstone of 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 attractive price, enabling you to achieve remarkable profits upon market recovery. But don't be fooled by the drop—purchases must be calculated within a comprehensive risk management plan, with a fixed risk ratio (1-2% of capital per 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 capitalize on any short-term movement, but a journey that extends over the timeframe you deem appropriate. Choose your timeframe 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 entries and exits.
Capital management and diversification among assets are essential to mitigate excessive exposure to a single market. $