#MyTradingStyle
The strategy of buying at the bottom is the cornerstone of any successful trader; when the market experiences a sharp decline and asset prices are at their lowest, a valuable opportunity opens up for you to enter trades at an attractive price, allowing you to achieve significant profits when the market rebounds. However, do not be deceived by the drop—purchases must be calculated within a comprehensive risk management plan, 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 duration 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 like 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 additional indicators on entry and exit timing.
Capital management and diversification among assets are essential to limit excessive exposure to a single market. Do not let greed push you to increase the trade size at the peaks.