Buying from the Bottom

The strategy of buying from the bottom is 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 attractive price, enabling you to achieve notable profits when the market rebounds. However, don't be deceived by the drop—purchases must be calculated within a comprehensive risk management plan, setting a fixed risk ratio (1-2% of capital for each trade) and pre-determining 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 a timeframe you deem appropriate. Choose your timeframe based on your style (#MyTradingStyle): a day trader for quick gains, 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 gauge market momentum, alongside fundamental analysis that tracks economic news and supply and demand data. Sentiment statistics and institutional flow levels can also provide you with additional indicators for timing your entries and exits.