Also known as buying dips. Works well in bull markets.
The basic idea is pretty simple. Plenty of strategies and experience / common sense / ability to process information (/risk management but this should not be an issue and not worth mentionning) will make the difference, but at the core it's pretty simple.
Bull market identified? Buy dips. Period. Get out when the bull market is ending (It is very simple but also without any pity mistakes are devastating. Being in denial is ELIMINATORY. Better miss out or take small losses from time to time than sticking to some stupid bias and getting rekt over and over like parabolictrav).
Here are a few strategies examples:
* Buying a pullback to a . Careful with this... Have to be intelligent here...
Also some more similar examples at the end of this idea. Crypto's alts.
* Buying fibonacci pullbacks.
Here is a 0.618 buy I made a year ago. I posted this in a multi idea 1 year ago. 1 year and a few days now. Idea is still here.
Fibonacci levels are part of my baggage but I don't use these exact numbers that much. Will talk about this in my next strategy example.
But with Bitcoin oh my! This just keeps working. Look at this.
BUT WAIT! IT DOESN'T STOP THERE!
* Using "fibonacci" area's
I just split the wave into 10 separate parts, some of them are "too hot" or "too cold". It depends on what I am trying to accomplish. Not going into details, it gets complicated, idk how to explain. This should make sense anyway.
* Other, such as buying a retest of a previous resistance as support.
*** Combining it all.
Strategies can be worked together all 4 that I mentionned, more conditions can be added, the fundamental value of a company, or macroeconomies of a country, can be analyses and these strategies are used to get in at better prices.
There are literally millions of possible strategies combining the basic stuff. And since things changes all the time there is not strategy that can be stupidly used. And also every market works differently.
A simple example would be using market cycle knowledge applied to buy pullbacks when the price is bottoming / in accumulation phase.
Example 1: The Turkish Lira downtrend ( USDTRY uptrend)
Example 2: Microsoft
Exemple 3: Coca Cola
Exemple 4: Bitcoin
Of course I am showing good exemples that worked out to illustrate this. Sometimes it ends up in losses.
Sometimes (often?) having conditions means missing out, but this also means the difference between a monkey throwing darts at a target and a smart investor.
Those that cannot stick to the rules because their tender feelings got in the way "oh no I missed out a win and took a loss", are those that join the usual 90% stats.
Pareto principle applied: 80% of the success will come from 20% of the trades.
Works well in bull markets sure, but in accelerating bubbles OHHH MY!
Let me tell you about when I had some money to spare (also had debt 3 times as big as that but that's just details) and got in crypto, before I was a trader.
This is how I started and I am still doing this the most.
In 2017 I would buy some cryptocurrency on Anycoindirect. nl (because the person that talked to me about crypto was Dutch) and get it a while later, because I wasn't fully verified and every thing at first I even waited several days for my first buy.
Started with 100 euros and doubled up in 2 weeks or something. Never bought any Bitcoin , why would I? Alts were performing 10 times more. I don't think I got lucky. It was so clear this was about to explode. Once in a decade (at best) opportunity.
I wish I knew more before, would have squeezed so much more out of this illuminati pyramid scheme. I got so close too...
Had some insider info Stellar would at least *3 back in november, but was not able to buy. Stellar was a pump and dump I think.
All of the crypto's tbh.
There is not much to say, the base principle is very simple. And in bubble you really don't need to think. I just used coinmarketcap and paint and some crypto reseller.
I moved to my first exchange between the 1rst and 5 December 2017, Binance. Because it was exploding and I wanted more. I had some foundations and success from 2017.
One that I remember the most was Tron pumped and dump. Literally during the whole operation (I was not part of the P&D group I learned about it later) I bought and sold over and over plenty of times a day. Geez now if I get 3 trades a week I am happy...
I was watching it, but I missed the very bottom, because of work & sleep. I sold the absolute top give or take 2-3 cents, and walked away after that.
I can't zoom in on trading view any more :(
- Warren Dalio