1. Market Trend Analysis
Uptrend? If the market is showing higher highs and higher lows, it's a positive sign. Buying during an uptrend may offer potential short-term gains.
Downtrend? If prices are falling consistently, it might be safer to wait or consider a smaller investment.
2. Technical Indicators to Watch
RSI (Relative Strength Index):
Below 30 = Oversold (possible buying opportunity)
Above 70 = Overbought (risk of pullback)
Moving Averages:
Price above the 50 or 200 MA suggests bullish momentum.
Price below them suggests bearish conditions.
3. News and Market Sentiment
Positive news (e.g. partnerships, regulations, upgrades) can support a buy decision.
Negative news (e.g. hacks, bans) can be a signal to wait.
4. Risk Management
Never invest more than you can afford to lose. Use stop-loss orders to limit your downside, and consider taking partial profits on the way up.
