Is this trading strategy profitable?

[viking02]

We all hear about the buy low and sell high.  Well when all the coin prices go down, isn't it a good idea to just buy them when it goes really down?  I dont mean like it drops 5 percent.  I mean like if it takes a huge dip.  I assume like 15 percent or more


Then once you do that, you wait for the coins to go back up.  Now if it continues to drop, then yes you lose money.  But you don't lose money until you sell it at the price below which you bought it at.  Now if you buy a coin that is like under 1 dollar.  Let say this coin is like 2 dollars etc.  Then isn't buying a coin like this a good idea?  Because if it goes back up, you double your money if it goes back to 2 dollars?  The other thing is let say you buy 1000 shares of this coin at 1 dollar.  Now the coin goes back up and say it hits 1.25.  Now you get rid of this coin and sell all of it.  So you buy it for 1000 dollars total for 1000 coins at 1 dollar each.  Then sell everything at 1.25 so around 250 dollar profit minus fees.


Thus the point of this strategy is wait till the market falls really bad.  Then you buy.  Because if you buy, i mean how much really can a coin fall after it goes below 1 dollar right?  Now if its a coin thats 50 dollars and drops to 25... well thats different since it could drop more.  But it just seems like all these coins do fall... then always seem to go back up right?  Thus imagine theres a huge dip... you buy a few of these coins and buy a lot of it.  Then once it goes back up to a decent price... you can either sell it all... or wait till the price starts falling again.  Then once you do that, you rinse and repeat. 


Im sure many people have thought of this right?  Now how often does this strategy fail?  How often does it fail assuming you do not mind the price going down even more and you will not sell those coins at below the price you bought it at?  I know many ppl would lose because they dont want to lose any more money so they just sell it at a loss.


But thoughts on this?  I mean it seems like even if a coin is 10 dollars, say you buy 500 of them for 5000 dollars.  If it goes back up to 12.50.  You can sell it at for 6250.  And make 1250 profit minus fees.


The other thing i want to know is are there signs when prices will go up or drop?  Because it seems like you could possibly make a few thousand dollars a month doing this if you buy a few coins at really low prices and then sell all of it once you profit say 25 percent?  Now imagine a coin is 5 dollars.  You buy 1000 of them.  It goes up to 6.25.  You sell it and make 1250 profit.  You do this with a few other coins but issue is you need more money to do this.  But the thing is you dont know how long it would take for the coin to go back up.  Now if it keeps falling... you are not making money but u are not losing until you sell it.

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[Irvinn]

In general, the logic is correct. If you see that the price of a coin has fallen by more than 15 percent, you are buying it. Then just wait, when its price does not rise to an acceptable level for sale. Of course, if someone did not have enough nerves and he sold these coins still at a loss to himself at a loss, being afraid that this coin will not rise, then he is to blame.

[pooya87]

no it is not a good idea to buy just because the price has gone down.

there is always a reason for a drop in an altcoin. and when their prices go down they usually stay down. and also think about it like this: if it went down 15% who says it can not go down 40% so lets assume you bought after it went down 15% but it continued going lower to 20% then 30 and then 40 and then it recovered back up only 10%. you are still going to be in a big loss.

[FomoATH]

We all hear about the buy low and sell high.  Well when all the coin prices go down, isn't it a good idea to just buy them when it goes really down?  I dont mean like it drops 5 percent.  I mean like if it takes a huge dip.  I assume like 15 percent or more


Then once you do that, you wait for the coins to go back up.  Now if it continues to drop, then yes you lose money.  But you don't lose money until you sell it at the price below which you bought it at.  Now if you buy a coin that is like under 1 dollar.  Let say this coin is like 2 dollars etc.  Then isn't buying a coin like this a good idea?  Because if it goes back up, you double your money if it goes back to 2 dollars?  The other thing is let say you buy 1000 shares of this coin at 1 dollar.  Now the coin goes back up and say it hits 1.25.  Now you get rid of this coin and sell all of it.  So you buy it for 1000 dollars total for 1000 coins at 1 dollar each.  Then sell everything at 1.25 so around 250 dollar profit minus fees.


Thus the point of this strategy is wait till the market falls really bad.  Then you buy.  Because if you buy, i mean how much really can a coin fall after it goes below 1 dollar right?  Now if its a coin thats 50 dollars and drops to 25... well thats different since it could drop more.  But it just seems like all these coins do fall... then always seem to go back up right?  Thus imagine theres a huge dip... you buy a few of these coins and buy a lot of it.  Then once it goes back up to a decent price... you can either sell it all... or wait till the price starts falling again.  Then once you do that, you rinse and repeat. 


Im sure many people have thought of this right?  Now how often does this strategy fail?  How often does it fail assuming you do not mind the price going down even more and you will not sell those coins at below the price you bought it at?  I know many ppl would lose because they dont want to lose any more money so they just sell it at a loss.


But thoughts on this?  I mean it seems like even if a coin is 10 dollars, say you buy 500 of them for 5000 dollars.  If it goes back up to 12.50.  You can sell it at for 6250.  And make 1250 profit minus fees.


The other thing i want to know is are there signs when prices will go up or drop?  Because it seems like you could possibly make a few thousand dollars a month doing this if you buy a few coins at really low prices and then sell all of it once you profit say 25 percent?  Now imagine a coin is 5 dollars.  You buy 1000 of them.  It goes up to 6.25.  You sell it and make 1250 profit.  You do this with a few other coins but issue is you need more money to do this.  But the thing is you dont know how long it would take for the coin to go back up.  Now if it keeps falling... you are not making money but u are not losing until you sell it.

Logically correct, with a large drop in prices, you need to buy. But how do you know that in a day or two he will not fall even more significantly. Therefore, you need to wait for the right moment based on your intuition and desire.

[Pamadar]

no it is not a good idea to buy just because the price has gone down.

there is always a reason for a drop in an altcoin. and when their prices go down they usually stay down. and also think about it like this: if it went down 15% who says it can not go down 40% so lets assume you bought after it went down 15% but it continued going lower to 20% then 30 and then 40 and then it recovered back up only 10%. you are still going to be in a big loss.

that's why its always needed to research for such a reason why certain movements happen as we knew that many things are possible inside crypto's
and many factors of influence are creating impact I think the best way to do is to buy deeper and wait till that got filled up and then wait for some
bounce back the only problem is how we knew how deep we need to go.

[LouVandetta]

I don't think this is a really great strategy either, just saying.
All of it needs a big amount of money.
Even when in its dip, there might me a chance, even a smallest chance that the price will drop even more.
That is why there's something called TAs, SnR and others.

But the thing is you dont know how long it would take for the coin to go back up.  Now if it keeps falling... you are not making money but u are not losing until you sell it.

For this one, true af.
If it's for a long term and is a major coin, then go ahead.

[illyiller]

Thus the point of this strategy is wait till the market falls really bad.  Then you buy.  Because if you buy, i mean how much really can a coin fall after it goes below 1 dollar right?  Now if its a coin thats 50 dollars and drops to 25... well thats different since it could drop more.  But it just seems like all these coins do fall... then always seem to go back up right?  Thus imagine theres a huge dip... you buy a few of these coins and buy a lot of it.  Then once it goes back up to a decent price... you can either sell it all... or wait till the price starts falling again.  Then once you do that, you rinse and repeat.

The problem you aren't accounting for: markets tend to stay overbought and oversold for longer than you expect. The common expression is that markets can stay irrational for longer than you can stay solvent.

The proper way to do this is to take a statistically sound approach. Work off standard deviations using past history, figure the risk, and develop a system where you systematically increase/decrease your position in relation to volatility. For example, in a falling market, you would increase your long position incrementally (at higher magnitude the further the drop), repairing the position as it rebounds.

There is, of course, the possibility of margin calls. Trade carefully.

[Kizaki]

We all hear about the buy low and sell high.  Well when all the coin prices go down, isn't it a good idea to just buy them when it goes really down?  I dont mean like it drops 5 percent.  I mean like if it takes a huge dip.  I assume like 15 percent or more

It can be good and at the same time it can be bad. It's all about luck and your skill to predict the future of the coin you will invest your money to. If the coin you are targeting drops over 20%, find the reason why. It's all about your skill and dedication with a bit of luck. If you know the reason, you can slightly predict what will happen but most of the coins that drops that big in an instant will eventually die out.

1 tip you should always remember is that, put your trust on the coins that has good reviews and are on the top of the community. They are the ones that stays as long as the community wants it. So when there is a price drop, there is a good chance it will go back up again

[OneUserOne]

To trade for your benefit you need to gain the fundamental knowledge of economic, political and social aspects all over the world, and you need to think analytically, outside the box in order to understand the trading trend and its potential movement either up or down. There always is the risk of losing, but unless you embrace it, you will not be able to make your trading strategy profitable.

Is your trading strategy based on your own experience and/or any other materials?

[uraharasan]

Now yes trapped in the NEO because of the regulation of china but because I do not panic then I just hold it, then just now I heard the news that china only temporarily banned ICO so later if the regulation is ready, ICO will be legalized back and I am sure the price of NEO coins must rise.

[Ponylon]

you are confusing some things here

it's irrelevant whether a coin is priced at one dollar or a hundred dollars

a coin might be priced at one dollar, and have a market capitalization of one billion

and a coin might be price at a hudred dollars and have a market capitalization of hundred thousand, which makes it more volatile

[traderethereum]

the problem is most people can not be patience when they are trap in one price and they are in panic situations, they don't think too much and they only want their btc back even if they are only get loss. many of us having this experience and some of us choose to waiting the price is back and not sell because we know if we are selling our coins then we can get loss in money value.

[cubevtc]

me used ordin limited i buy at -5% market price and sell at 5$% and every day i make some profit

[BitcoinHodler]

the strategy is to buy low, and low means after it reached bottom not when it is on the way to that bottom.
what you suggest means buying on the way down. and when you set a percentage in mind for all your trades it makes it impossible to be successful because not all drops are the same. sometimes it is a very small drop of 5% and sometimes it is a big drop of 70% and both of these actually happen in real market.

your fixed percentage will be lost in this drops, in first small drop you would never buy and in the second scenario when the drop is big you buy and lost a lot of money.

that is why you should always work and decide case by case basis.

[jerowacik]

the problem is most people can not be patience when they are trap in one price and they are in panic situations, they don't think too much and they only want their btc back even if they are only get loss. many of us having this experience and some of us choose to waiting the price is back and not sell because we know if we are selling our coins then we can get loss in money value.

I agree with you that the most influential and destructive outcome we will get is a panic. because the panic can make our decision to be in a hurry. but when we can be patient then we can get good results. this is self-control that can make it all work or fail. so be patient is one of the important points to get perfect results.

[maokoto]

Can be a good strategy if you keep some cash to buy more if it goes yet lower. Then, as other have said, it is good to do it with coins that are already good and likely to recover. Many coins just go to 0 and then never go back again, sadly.

[no0dlepunk]

Yes OP, this strategy is profitable; I would also want to add that before you buy a coin you might want to read it's whitepaper first, and then see for yourself if the price drop is due to correction or it might have been dumped for good. But I believe that all altcoins could be pumped anytime. I had earned a few decent amount with a coin called syndicate... I bought it at a very low price and kept it for a while. but again, CAVEAT!

[offlinedragon]

We all hear about the buy low and sell high.  Well when all the coin prices go down, isn't it a good idea to just buy them when it goes really down?  I dont mean like it drops 5 percent.  I mean like if it takes a huge dip.  I assume like 15 percent or more

It can be good and at the same time it can be bad. It's all about luck and your skill to predict the future of the coin you will invest your money to. If the coin you are targeting drops over 20%, find the reason why. It's all about your skill and dedication with a bit of luck. If you know the reason, you can slightly predict what will happen but most of the coins that drops that big in an instant will eventually die out.

1 tip you should always remember is that, put your trust on the coins that has good reviews and are on the top of the community. They are the ones that stays as long as the community wants it. So when there is a price drop, there is a good chance it will go back up again

Well in my opinion the best trading strategy is to invest more when price is low and start trading your assets when prices are higher. In this way you can earn more profits and become stable in the market. Better analysis of the market and prior experiences are more beneficial while trading.

[Bitcotalk]

me used ordin limited i buy at -5% market price and sell at 5$% and every day i make some profit

I must praise your strategy. This is how you do the things and make out money. But I think this is such a hectic job to buy and sell every day. You need to make a different strategy in order to get more money with fewer efforts. You can probably hold it for a month or so instead of buying them every day.

[RedX]

Can be a good strategy if you keep some cash to buy more if it goes yet lower. Then, as other have said, it is good to do it with coins that are already good and likely to recover. Many coins just go to 0 and then never go back again, sadly.

Happened to me. I bought an altcoin that is dropping more than a 100% and telling myself I'm lucky I bought the dip but has no idea it was just going to be delisted so that's why it's very cheap.