WHERE DOES THE PROFITS FROM?

[harizen]

No need to be too technical about these. Just aim for the profits and don't mind where these profits came from.

It won't give any benefit to us in the first place and besides here in trading, we just have to mind our own business.

Buying low, selling high - seems a simple statement but is hard to execute in reality, in most cases.

[Flexystar]

First of all, do not add "hashtag" everywhere because that is not going to be helpful considering we are on the SMF which does not support hashtagged. Just leave it as it is OR you can bold or underline the important words you want everyone to read about.

Well, what I understand from your post is, you trying to work the math if someone is selling profits then who is buying? Let us understand that the market is full of investors, and volume is always driving because for every investor an entry point could be different all the time. I mean you may think you are in profit and selling at very high prices but for someone, it could be just initial entry or they are just buying because they are long-term whales who keep eating whatever comes in handy.

This is why the market works two ways and if you are selling then someone is always buying. Obviously, it works only in the case of high-volume markets such as bitcoin.

[Jody.Drummer]

First of all, do not add "hashtag" everywhere because that is not going to be helpful considering we are on the SMF which does not support hashtagged. Just leave it as it is OR you can bold or underline the important words you want everyone to read about.

Well, what I understand from your post is, you trying to work the math if someone is selling profits then who is buying? Let us understand that the market is full of investors, and volume is always driving because for every investor an entry point could be different all the time. I mean you may think you are in profit and selling at very high prices but for someone, it could be just initial entry or they are just buying because they are long-term whales who keep eating whatever comes in handy.

This is why the market works two ways and if you are selling then someone is always buying. Obviously, it works only in the case of high-volume markets such as bitcoin.

So in essence, when someone is selling, someone is definitely buying. It's a cycle that will always exist, if you are confused then look at buying and selling transactions on one coin, we will see at the same time buying and selling transactions so quickly. Things like this seem familiar to be questioned.
You are right, when we sell at the highest price, it doesn't mean that everyone will feel the same way, it could be that they are just starting out by buying and adding assets to their portfolio. So as it is said, where there are those who sell there will definitely be those who buy.

[justdimin]

I would say when you make a bad trade, do not sell and instead DCA, this of course works with btc and not all altcoins. Some of the altcoins are so terrible that they will keep going down and down and never back up and will die, and if you picked one of those then you are going to end up with a big loss. However, if we are talking about bitcoin trading, and if you buy at the top, then all you gotta do is buy more and DCA your way out of it. This means you will have less and less need for the price to go up, and eventually will profit when it goes up. Will take money and time to do it, but at least its a way out.

What if they already set a stop loss? I don't think a trader can wait for the assets to recover once they start dumping but the one that usually does that are the investors. If you invest on a newer altcoin and if you doubt about their future, you should also set a stop loss so that you won't lose further. They might recover but the chance of it might only be small.

When it comes to BTC, if we accidentally buys at the top, we can wait for a while as there is a chance that the increase will continue. We can then sell to get out and start investing again at the dip. If we think the price of BTC is not yet high, we can continue doing a DCA as there might be more increase that will come.

[Mauser]

When investing in #crypto, you need to understand where the profits come from? . You buy low and sell high at many times, but you don't always buy at the bottom and sell at the top. I jumped in and ended up not getting a good #entry , then the account was not profitable , even lost & lost . What you need to decide is when the market has explored very deeply, the whole community is afraid to panic you buy at such times, don't listen to the media at those times, it all just annoys and scares you. so all plus outside there . Remember carefully: high profits come from beautiful #entry and waiting. Decisiveness and innovation for sustainable profits! #future is a tool for the house to hook up the coins from the community after 1 season of #uptrend failure = stay away from it!

Trading is a zero sum game, all the money that you take out of it must have come in by someone else. All the prices at the exchange are quotes were real people offer to buy and sell their coins. So the profit we make in trading is someone else's loss, but because there are hundreds of thousands of traders in the market it's not always a direct relationship. It's good that you made the difference between selling positions at bad prices and keeping them until prices recover. All the losses are only on paper until we actually trade the coins and realise them. That's why it's important to only use money for trading that we don't need, to make sure we are not being forced into liquidating positions at a loss. The difference between making a profit or a loss can only be a few months.

[FUCKBSVFUCK]

In my opinion, the most important thing is to be patient and do not be afraid to take risks. 
 
If you are a long term ing in crypto is not a bad thing, but it is a good thing. 
 
There are many ways to earn money, but most of them are not easy. 
 
For example, you can buy a car, pay for it, buy a house, etc. 
 
If you are a long term investor, you should be able to make a profit in the long term. 
 
Invest

[tjtonmoy]

~Snip

The process of trading includes both profits and losses. But If you are doing one thing continuously, for example only loss, and you keep on doing it over and over. You are not learning anything. Learn from your mistakes, work on them to be the best at it. The same goes for profits/wins. If you keep on making profits, you are not facing any challenges. In that process, you are not learning the necessity of loss. But when you face this in the future (as this includes both profits and loss, you are bound to face it someday) you will become panicked and in then you will take the wrong steps. So have fun with trading. Experience both, gather knowledge, and then apply them to become successful.

And the profits are coming from other traders who are loosing. When you make a loss, others get profits.

[adaseb]

The way trading works, assuming no fees and spread it’s basically zero sum. For one to make money, someone else needs to lose it.

Doesn’t matter if it’s crypto trading or long term investing in stocks. There will always be one person to lose it all. Considered FRC. Someone bought it at the IPO and the same stock was sold along the way, everyone made money except the last buyer who lost it all.

This is how trading works.

[lixer]

In my opinion, the most important thing is to be patient and do not be afraid to take risks. 
 
If you are a long term ing in crypto is not a bad thing, but it is a good thing. 
 
There are many ways to earn money, but most of them are not easy. 
 
For example, you can buy a car, pay for it, buy a house, etc. 
 
If you are a long term investor, you should be able to make a profit in the long term. 
 
Invest

I think the first thing that you said is contradicting. If you choose to be patient, it only means that you are afraid to take risks (big risk) but there are those who are rushing and just trade or invest immediately even without doing the first step which is to learn and practice. I think these are the example of fearless or not afraid to take risk.

Long term is never a bad thing of course because it cuts risk and at the same time it allows us to see the full potential of our investments. Short term isn't bad either, it's just more risky but like investing, the profit potential here is also high. Indeed earning money is not easy so we must be careful with what we are going to do if we don't want to lose it easily.

[Nrcewker]

No one can really find out when will be the extreme bottom of the coin, or where the coin will stop increasing in price. Everything is based on assumptions. Rather the term “investment” means that, it is not fixed to get profit always. When you invest there is always the risk of loss revolve around you. So in order to make profits you need to take the risk and dive into this vast ocean of crypto investments. To make the maximum profit, study and observe the market and choose the best coin, according to it. And at first all make mistakes and losses and we learn from it.

[Flexystar]

When investing in #crypto, you need to understand where the profits come from? . You buy low and sell high at many times, but you don't always buy at the bottom and sell at the top. I jumped in and ended up not getting a good #entry , then the account was not profitable , even lost & lost . What you need to decide is when the market has explored very deeply, the whole community is afraid to panic you buy at such times, don't listen to the media at those times, it all just annoys and scares you. so all plus outside there . Remember carefully: high profits come from beautiful #entry and waiting. Decisiveness and innovation for sustainable profits! #future is a tool for the house to hook up the coins from the community after 1 season of #uptrend failure = stay away from it!

Hashtag - not supported in the forum.

I am amazed at how one can reach a conclusion so quickly. Have you seen the oldest player in the crypto world? Man, they are holding since the beginning and are more profitable than the person who is DCAing for a long because they can't reach that bottom ever. However, you can always win the market if you are not selling. I have read on this forum itself, if you sell then you lose, if you keep holding then you don't lose anything. It's a simple mantra to follow.

The only question is: How much profit do you want to book?
If you know the answer then you know when to sell. That's how simple it is

[death69]

When investing in #crypto, you need to understand where the profits come from? . You buy low and sell high at many times, but you don't always buy at the bottom and sell at the top. I jumped in and ended up not getting a good #entry , then the account was not profitable , even lost & lost . What you need to decide is when the market has explored very deeply, the whole community is afraid to panic you buy at such times, don't listen to the media at those times, it all just annoys and scares you. so all plus outside there . Remember carefully: high profits come from beautiful #entry and waiting. Decisiveness and innovation for sustainable profits! #future is a tool for the house to hook up the coins from the community after 1 season of #uptrend failure = stay away from it!

Hashtag - not supported in the forum.

I am amazed at how one can reach a conclusion so quickly. Have you seen the oldest player in the crypto world? Man, they are holding since the beginning and are more profitable than the person who is DCAing for a long because they can't reach that bottom ever. However, you can always win the market if you are not selling. I have read on this forum itself, if you sell then you lose, if you keep holding then you don't lose anything. It's a simple mantra to follow.

The only question is: How much profit do you want to book?
If you know the answer then you know when to sell. That's how simple it is

Ah, selling – the Achilles' heel of yours truly. I mean, I've clung to this ancient sofa for eons, despite it being a stained, wet-dog-smelling mess. But hey, who knows, maybe it'll rake in the big bucks someday! But for real, when it comes to Bitcoin investment, think long game. Yeah, there'll be crazy moments, but hold tight to your coins and trust the process; you'll emerge victorious eventually.

Sure, some peeps argue that profits should always be the endgame and hoarding coins is a disaster waiting to happen. To them, I say: chillax, peeps! Life's too short to obsess over a speedy payday. So if you're playing the marathon, grip that Bitcoin and don't let naysayers sway you. And who knows, my gnarly old couch could become a goldmine someday!

[jrrsparkles]

The way trading works, assuming no fees and spread it’s basically zero sum. For one to make money, someone else needs to lose it.

Doesn’t matter if it’s crypto trading or long term investing in stocks. There will always be one person to lose it all. Considered FRC. Someone bought it at the IPO and the same stock was sold along the way, everyone made money except the last buyer who lost it all.

This is how trading works.

Exactly, the profits of one person comes from the loss of other(s), so we never lost anything until we are holding the asset. OP is just new and came into conclusion too quickly which is not really a good thing to practice when you wanna be a trader. Just start from the beginning and learn from your mistakes so it means if you want to be a master then you need to go through all the phases of market.

[Aanuoluwatofunmi]

When investing in #crypto, you need to understand where the profits come from? . You buy low and sell high at many times, but you don't always buy at the bottom and sell at the top.

Have you ever buy and realized some interest over your holdings before you sell, did you also consider where those additional incentives or income source from? or maybe you've been using an exchange to perform your exchanges and trading daily, have you considered they also want to make profits from the services they provided for you, everyone is complementing each other no matter how small it is.

[jeraldskie11]

In fact, buying the bottom and selling the top is very difficult. Because as everyone knows the "bottom" is made up where there are the most sellers and the "top" is where the most buyers are.

We have no idea how far the market will retrace. We cannot also predict the price. We'd all be wealthy if we could predict the market. Because the market is always looking for liquidity, the price will likely move in the opposite direction. In this zone, the price frequently lands before breaking the prior high. Liquidity is typically evident in equal lows and highs, but it can also be found in imbalance.

[Stable090]

In fact, buying the bottom and selling the top is very difficult. Because as everyone knows the "bottom" is made up where there are the most sellers and the "top" is where the most buyers are.

People think buy at the bottom and selling at the top is very easy, we know it’s the fundamental of trading, but if it’s really easy then that’s what all trades will be doing and they will be rich already, it’s not all about buying low, how will you even know that the market is low already, how will you know it’s at the bottom already? To me it’s even very difficult to buy the bottom. Just make sure you do your technical analysis well before entering the market, and your technical analysis might still fail you sometimes, do your analysis know when to enter the market and know the appropriate time to leave the market, don’t be greedy but you thinking you will get the bottom, I don’t think that will be easy.

[irhact]

When investing in #crypto, you need to understand where the profits come from? . You buy low and sell high at many times, but you don't always buy at the bottom and sell at the top. I jumped in and ended up not getting a good #entry , then the account was not profitable , even lost & lost . What you need to decide is when the market has explored very deeply, the whole community is afraid to panic you buy at such times, don't listen to the media at those times, it all just annoys and scares you. so all plus outside there . Remember carefully: high profits come from beautiful #entry and waiting. Decisiveness and innovation for sustainable profits! #future is a tool for the house to hook up the coins from the community after 1 season of #uptrend failure = stay away from it!

Mate, you don't have to be making use of hashtags in the forum as they don't appear as they do on other social media and it makes reading your posts very difficult. From what I can understand you're advising us to always buy when the market is in corrections and the fud are at its highest level. Doing this only works for Bitcoin as there are higher chances of it recovering.

As an investors you shouldn't be waiting for the perfect timing to enter the market, you should develop the habit of buyiyyour coins when everyone is selling and then you wait, that's how you can increase your chances of making big profits. Example, those investing now will profit in the future more than those who'll invest in the future.

[justdimin]

In fact, buying the bottom and selling the top is very difficult. Because as everyone knows the "bottom" is made up where there are the most sellers and the "top" is where the most buyers are.

We have no idea how far the market will retrace. We cannot also predict the price. We'd all be wealthy if we could predict the market. Because the market is always looking for liquidity, the price will likely move in the opposite direction. In this zone, the price frequently lands before breaking the prior high. Liquidity is typically evident in equal lows and highs, but it can also be found in imbalance.

I am not entirely sure if it will act like that, I am not saying it won't but I feel like it will not be just going down. I think whatever retraction happened already happened, but I do not think that it will be that much of a big deal, I feel like it will be a simple situation. The best thing about the current situation is that it should not be a big deal for this drop, it feels alright.

I think it is important to remember that bitcoin always recovers in the end, and 2023 has been a bull year so far, reached from such lows to 30k levels. May will probably end above 30k if you ask me, and that will be the case for all of 2023 as well, going to keep getting higher and higher, maybe end with 40k+ or even as high as 50k+ if possible, that would be lovely.

[Litzki1990]

The main principle of profiting from crypto is to buy coins at a low price and sell them at a high price. But this is not always the case, many times we buy the coins when the market is relatively low, but due to bad conditions in the market, the market falls further below that low condition, as a result of which we suffer instead of profit. And some news confuses us even more. There are many people who always spread negative news about the crypto market. These negative news have a bad effect on many people.  So we have to avoid these misleading news and have enough knowledge about the market. Gaining enough knowledge and experience about the market will increase your wealth's chances of growth rather than losses.

[Similificator]

Most common mistake for newbies and even for intermediate traders is the mentality of chasing the bottom and the top when buying or shorting on futures or even on spot. Chasing the absolute bottom and high price on the market when trading is equivalent to chasing miracles and a bit of gambling. Even the most seasoned traders cannot pinpoint the bottom and high prices perfectly and I bet that most don't even bother stressing themselves out chasing those prices. What these veterans do instead is device a good trading plan and stick to them regardless of fud or hype. Which have made them gain tons of profits and minimal losses from the mistakes of most newbies and intermediate traders.