How Do you Handle a Downtrend as a day trader?

[sedahan13]

If there are indication the market reversal from bullish to bearish, i have to sell al digital asset and wait for oversold to buy back. But range from bullish to bearish is long times , so to make money in this down trend there others option to make profit, like margin trading on the CFDs or futures crypto trading by short/sell the price.

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[Gwapoman]

I trade Alts against BTC as a day trader, when the market is all green we were able to make nice returns ranging from 12% to 25% on a single trade. But during a severe downtrend market all our profit including capital goes down into it and it practically indicate we are at loss.

So I'm wondering what is the best way to handle a downtrend situations?

I usually stay with BTC and stop trading til I spot a market recovery..and if Im in my risky mood i do trades with tether too.

I also check the average weekly price of an alts and do some small buy backs whenever the alts im watching fell 5 to 10%..It'll help accumulate small amount of alts over time.

[qiwoman2]

I am not very good trading with a falling knife, so best in this scenario is to wait and see if a bottom has been established before entering a trade. When you see a new bottom, then that's the best time to come into a trade and see what type of trade you want to do. Also, arbitrage might be a good solid trade when there is chaos in the markets, as they usually form in different exchanges, different prices, which are good trades as you are guaranteed to come out a winner through arbitrage. I don't often get a chance to arb but when I do I really like those winning trades and try my best to execute them when I possible can that is.

[Wexnident]

If there are indication the market reversal from bullish to bearish, i have to sell al digital asset and wait for oversold to buy back. But range from bullish to bearish is long times , so to make money in this down trend there others option to make profit, like margin trading on the CFDs or futures crypto trading by short/sell the price.

Well you should handle your emotion on every market's situation don't be too excited when prices goes up and not to worried when market is down. As for me, i just ride the wave of the market to avoid a big loss. Downtrend is a great opportunity to buy more coins in the market since prices are quite low than usual, by that, there is a big chance of getting a big return.

[mornabo]

Every downtrend is very disturbing. Most times, you see your profit going down and you can't do anything about it. There are different methods of handling downtrend of a trade. Calculate very well and know what to do. Most times I exit the trade early and rebuy at dip.

The important thing is to do analysis and research first, if you see the potential price to go back down then you can
sell it and rebuy at a lower price, if you see prices going up soon then hold it and buy more

[eaglewhite80]

Every downtrend is very disturbing. Most times, you see your profit going down and you can't do anything about it. There are different methods of handling downtrend of a trade. Calculate very well and know what to do. Most times I exit the trade early and rebuy at dip.

The important thing is to do analysis and research first, if you see the potential price to go back down then you can
sell it and rebuy at a lower price, if you see prices going up soon then hold it and buy more

Even with analysis and research, you just have to understand that in a downtrend, the market is prone to moving down faster than up and you always want to keep your stop loss active while having a good strategy when it comes to taking profit without the mindset of expecting something much in profit per every trade. Most traders tend to find a clear signal before even attempting to trade during downtrend, but the most important thing is to find a strategy that works fine for you.

[manggis97]

When the bull market coming and the price of many crypto already going up multiple times like 10 to 50 times is better withdraw 50% of that and move to others asset that has risk lower,  do not greedy and FOMO because there are always peak price and the price will be change to down trend.

[wahyu wida]

When the bull market coming and the price of many crypto already going up multiple times like 10 to 50 times is better withdraw 50% of that and move to others asset that has risk lower,  do not greedy and FOMO because there are always peak price and the price will be change to down trend.

right, don't be greedy for profit. when prices have decreased, i used to do it looking for a good position to buy. and buy gradually, so that if there is a decline again, i can buy it again

[darthmaul]

Always told people like you who keep thinking that downtrend is something that can hamper the trades really. Well that doesnt matter at all mate if you are going to perform the trading on shorter period of time. There is always some ups and downs within that downtrend. Dont look at the big picture at all, look at the current market, the very last minute to last hour of 24 hours! Checkout the signals and you will see how they go up and down within that period even when it is down in the price. It doesnt matter if the BTC has dropped from 20K USD to 7K USD today as you can still see that BTC is moving up and down with prices like 7.2K USD or 6.6K USD in the meantime of its downtrend. You see it make sense and you can apply same strategy to others too.

[iASIC]

I trade Alts against BTC as a day trader, when the market is all green we were able to make nice returns ranging from 12% to 25% on a single trade. But during a severe downtrend market all our profit including capital goes down into it and it practically indicate we are at loss.

So I'm wondering what is the best way to handle a downtrend situations?

It is to put a stop loss when you go to bed or have unexpected work. That is important, but there are no such functions in some trading platforms. Only Binance and Bitfinex have that functionality. You should only place orders to prevent losses in a reasonable way to avoid the market down slightly but you sell all your coins.

[coin_1122]

I trade Alts against BTC as a day trader, when the market is all green we were able to make nice returns ranging from 12% to 25% on a single trade. But during a severe downtrend market all our profit including capital goes down into it and it practically indicate we are at loss.

So I'm wondering what is the best way to handle a downtrend situations?

It is to put a stop loss when you go to bed or have unexpected work. That is important, but there are no such functions in some trading platforms. Only Binance and Bitfinex have that functionality. You should only place orders to prevent losses in a reasonable way to avoid the market down slightly but you sell all your coins.

You are right, many people who are in crypto still don't use these feature and that's why many people are losing their value in the market. We have to be very careful in the market because we don't know when the market starts going down but when the market is kept increasing we don't face any problems.

[jrrsparkles]

I trade Alts against BTC as a day trader, when the market is all green we were able to make nice returns ranging from 12% to 25% on a single trade. But during a severe downtrend market all our profit including capital goes down into it and it practically indicate we are at loss.

So I'm wondering what is the best way to handle a downtrend situations?

In day trading the loss is inevitable,you also need to faces if you are engaging it daily terms but the loss can be minimized by holding the coin for longer term or just exchanging the coin shich is doing good on that particular day maybe some altcoins will go creazy for a while so pick them and buy and sell it in short term them move to USDT or BTC for making profits.

[udidrone]

I trade Alts against BTC as a day trader, when the market is all green we were able to make nice returns ranging from 12% to 25% on a single trade. But during a severe downtrend market all our profit including capital goes down into it and it practically indicate we are at loss.

So I'm wondering what is the best way to handle a downtrend situations?

So it means you trade your profit with capital and not cash out it first, i think capital don't need to increased by profit so we still can use our profit for something else. If we keep use our profit to trading with capital, when loss it will be wasting time only