Will you enter a trade after a drop or wait?

[Rubuchi]

Source: Coinmarketcap
My question is, are you going to enter a trade after seeing a drop or you will want to wait for the market to show you a clearer direction first before making a decision. There is something I noticed with bitcoin between today and last few days of the week. The price has been moving around and that reminded me how easily some traders jump into making a decision without properly analyzing it simply because they are afraid of missing out on the next move.
Sometimes as a trader you went ahead  to enter to a trade because you think bitcoin price is about to rise then the price suddenly drops after a little time, maybe in some hours or days, at that point, will you decide to close your trade because the market have moved against you or you will hold on to your position since you have a bigger plan or strategy you have set for the trade or begin to blame yourself that you entered the trade too early?
I guess that’s why trading deals more with one’s psychology rather than just looking at the direction of the charts alone and that’s why I also think that sometimes not entering a trade itself is also a trading strategy because as a trader you should not have the mindset of saying that you have to catch every single bitcoin move you see as an opportunity and sometimes I also think that there is wisdom in you waiting for some time to understand what the market is doing before you take a decision because that can save you from entering an unnecessary trade which will result to losses. But i also believe this question should specially go to those who trade regularly because i would love to know how they are able to navigate their ways to successful trading without falling into drop traps, permit me to call it that way.

[Oshosondy]

How about grid trading?

Have $1500 for example, put $500 each on three exchanges for grid trading. But no relaxing at all, let all your analyses be good to yourself and enter the market at the best possible time, then grid trading begin if the market for against your direction.

No leverage more than 2.5x
No martingale (very bad for traders).

We do not know when it is the right time to enter market, we are only trying using some indicators while some traders draw some lines.

[Asiska02]

The best way to avoid losses in the trading market is to trade in the direction of the market. This can always be spotted in the higher time frame as compared to taking trades on lower time frame when not in the direction of the HTF of the market. The best way that traders don’t fall for traps in the market as a result of a sudden move in the market is not allowing their emotions to overcome their strategic plan they’ve already mapped out to always use in the market.

A market drop doesn’t mean a buy signal itself without making necessary confirmations and also note if it is worth taking applying your risk management skills. When you fall for the trap, your capital will go but the market will still be there tomorrow to trade. Traders should learn more how they’ll safeguard their capital before running after chasing profit. Patient may also be seen as a technical approach in the market because it is important for long term stability/profitability in the market.

[Mpamaegbu]

My question is, are you going to enter a trade after seeing a drop or you will want to wait for the market to show you a clearer direction first before making a decision.

The best time to get into trades isn't during FOMO or price spike. It's during correction or retracement. That's what traders see as dump/drop/dip that scares a lot of people. Experience traders ride on it.

...will you decide to close your trade because the market have moved against you or you will hold on to your position since you have a bigger plan or strategy you have set for the trade or begin to blame yourself that you entered the trade too early?

You don't have to panic while trading. Allow your SL (Stop Loss) take care of that emotion off you. Determine what you can afford to lose in every trade before hand and don't shift your SL to acquire more loss once it's set. You can tighten it to reduce your loss as trades start moving in your favour at a level. It shouldn't be done randomly.

...that’s why I also think that sometimes not entering a trade itself is also a trading strategy...

It's not sometimes. It's always. Not trading is a trading strategy. Only those who are conservative traders will understand it.

[Hatchy]

I also think that there is wisdom in you waiting for some time to understand what the market is doing before you take a decision because that can save you from entering an unnecessary trade which will result to losses. But i also believe this question should specially go to those who trade regularly because i would love to know how they are able to navigate their ways to successful trading without falling into drop traps, permit me to call it that way.

As a trader, every decisions you make should be from different confluences you have of the market. Some people will tell you that they just need to learn a strategy that will give you an upper hand in the market, but I don't believe such thing exists. Profitability in trading is as a result of your ability to know when to execute. You can't always be right, that's for sure. But you shouldn't always try to be smart.  No matter how good your strategy is, you should look at certain things that could go wrong more than your predictions going right. After a drop, your decisions to wait or keep trading is dependent on what the market reads to you. Since the last drop of bitcoin that cleared it's previous low at $60k, it's obvious that price has been ranging. Should you short? Or should you long? Such decisions should be made from what you see and understand of the market.

[Charles-Tim]

The best way to avoid losses in the trading market is to trade in the direction of the market. This can always be spotted in the higher time frame as compared to taking trades on lower time frame when not in the direction of the HTF of the market. The best way that traders don’t fall for traps in the market as a result of a sudden move in the market is not allowing their emotions to overcome their strategic plan they’ve already mapped out to always use in the market.

I agree with this, but did you know that you are already referring to swing trading, because the higher the time frame used, the higher your patience and the time needed to leave your trade opened. But some people will just want to either scalp or go for swing trading. I think trading is highly risky generally. The less risky among them is swing trading, but the amount of money used and the leverage also matters a lot.

Although, there are some people that might use low time frame but still make money from trading. There are times that high time frame may also fail.

Patience to wait for market to have a direction is better.

[Dr.Bitcoin_Strange]

Source: Coinmarketcap
My question is, are you going to enter a trade after seeing a drop or you will want to wait for the market to show you a clearer direction first before making a decision. There is something I noticed with bitcoin between today and last few days of the week. The price has been moving around and that reminded me how easily some traders jump into making a decision without properly analyzing it simply because they are afraid of missing out on the next move.
Sometimes as a trader you went ahead  to enter to a trade because you think bitcoin price is about to rise then the price suddenly drops after a little time, maybe in some hours or days, at that point, will you decide to close your trade because the market have moved against you or you will hold on to your position since you have a bigger plan or strategy you have set for the trade or begin to blame yourself that you entered the trade too early?
I guess that’s why trading deals more with one’s psychology rather than just looking at the direction of the charts alone and that’s why I also think that sometimes not entering a trade itself is also a trading strategy because as a trader you should not have the mindset of saying that you have to catch every single bitcoin move you see as an opportunity and sometimes I also think that there is wisdom in you waiting for some time to understand what the market is doing before you take a decision because that can save you from entering an unnecessary trade which will result to losses. But i also believe this question should specially go to those who trade regularly because i would love to know how they are able to navigate their ways to successful trading without falling into drop traps, permit me to call it that way.

From what I can see on this chart, it looks like you are on the 1-week time frame, and I can clearly see a supply zone at around $80k. Some leverage traders may wait for the price to get to the supply zone first and show some confirming reactions before they start shorting. However, if you are not using leverage but are instead averaging, you can take your buy from this level, and if the price drops, you buy more.

If you are referring strictly to leverage trading, I don't always use the weekly time frame to execute my trades. Rather, I use the 4-hour, 1-hour, and 15-minute time frames for my top-down analysis before entering a position on either the 1-hour or 15-minute chart. So, if I were to go by your chart, I would have to wait for the price to get to that supply zone and give me some confirmation before taking a trade, or I would wait for it to break structure below. Then, I might enter a short position when it pulls back. However, I prefer to use my preferred time frames.

Below is a Bitcoin trade that I had been waiting for since the 17th, but it wasn't until around 1:00 a.m. yesterday that the trade was activated since it was a limit order.

[adultcrypto]

When price drops with very high momentum, the likelihood of it reversing is low which means the prevailing direction is the most probable side to trade in. Market move in phase,  and before every major move, there will be accumulation or what some people call consolidation which is a phase the market build orders (sell stops or limits and buy stops or limits). It is when these orders are raided that the market gain the needed liquidity to surge in any direction it choses had with high momentum.

Before there will be a change of direction, then there will be change of character followed by break in market structure and a restest which shield be the entry point for those that wants to join the new direction. Until I see these features present in the market, I will never trade reversal.

[Zaguru12]

I agree with this, but did you know that you are already referring to swing trading, because the higher the time frame used, the higher your patience and the time needed to leave your trade opened. But some people will just want to either scalp or go for swing trading. I think trading is highly risky generally. The less risky among them is swing trading, but the amount of money used and the leverage also matters a lot.

Although, there are some people that might use low time frame but still make money from trading. There are times that high time frame may also fail.

Patience to wait for market to have a direction is better.

It’s actually a two way thing there is no specific trading strategy that Is immune to Losses but the losses actually varies depending on the strategy used, swing trading is regarded safe because it doesn’t get affected by the short term stability of the market it’s the closest trading strategy to holding but it is also only profitable if the pairs is actually BTC/USDT pair because of it’s low volatility when compared to other assets, you cannot swing trade certain altcoin pairs because of their volatility. That is also why this Altcoins pairs are usually the best in scalping because they can move in different directions in less than 10 minutes.

As for the current ranging market which OP is actually on about, most people do not trade it because of the consolidation of the market and people that trade in this market condition actually use the grid trading strategy but even this is not immune to losses too because for example bitcoin can decide to be heading down from here and then could result in losses

[Odusko]

As traders, we should know that a falling price is not the best entry point, and traders shouldn't be tempted to take such a trade simply because the market dips sharply. To avoid being trapped in losses if the price continues to fall after entry, traders need an entry strategy that emphasises two key aspects: risk management and consistency in executing their strategy.
Recognising that not every market dip presents an entry opportunity, traders must be able to overcome FOMO and wait until the market reaches their preferred entry point. At that moment, they should prepare for both a stop-loss in case the trade moves against their analysis on a bad day, and position funds that keep them in the market through volatility until the price recovers, allowing them to profit again.

[Pandorak]

Source: Coinmarketcap
My question is, are you going to enter a trade after seeing a drop or you will want to wait for the market to show you a clearer direction first before making a decision. There is something I noticed with bitcoin between today and last few days of the week. The price has been moving around and that reminded me how easily some traders jump into making a decision without properly analyzing it simply because they are afraid of missing out on the next move.
Sometimes as a trader you went ahead  to enter to a trade because you think bitcoin price is about to rise then the price suddenly drops after a little time, maybe in some hours or days, at that point, will you decide to close your trade because the market have moved against you or you will hold on to your position since you have a bigger plan or strategy you have set for the trade or begin to blame yourself that you entered the trade too early?
I guess that’s why trading deals more with one’s psychology rather than just looking at the direction of the charts alone and that’s why I also think that sometimes not entering a trade itself is also a trading strategy because as a trader you should not have the mindset of saying that you have to catch every single bitcoin move you see as an opportunity and sometimes I also think that there is wisdom in you waiting for some time to understand what the market is doing before you take a decision because that can save you from entering an unnecessary trade which will result to losses. But i also believe this question should specially go to those who trade regularly because i would love to know how they are able to navigate their ways to successful trading without falling into drop traps, permit me to call it that way.

Rises and falls are normal, they occur due to pressure from buyers and sellers. If we look at Bitcoin recent price movements, the price is still trending sideways. At this moment, traders are not advised to hold their positions for a long time, as they could get caught up in a post breakout trend due to the unclear direction. Although at first glance, the trend appears bullish on lower time frames, higher time frames clearly show that Bitcoin is still in a downtrend. We’re still in a bearish market phase, and it’s unclear whether the price will break out above $58k again to target the psychological level at $50k or reverse with a breakout at the key level of $67k, we can only wait and see.

Personally, in a situation like this, i’ll focus on a scalping strategy, buying and selling at resistance and support levels on the lower time frames. This not only minimizes risk but also maximizes profits. However, if your focus is on swing trading, holding positions for a longer period, i’d recommend waiting for a breakout to occur. Once that happens, wait for a temporary pullback or retracement before entering the trade, this will help you maximize your profits.

[Asiska02]

Although, there are some people that might use low time frame but still make money from trading. There are times that high time frame may also fail.

Patience to wait for market to have a direction is better.

No time frame doesn’t fail, because as a trader you’ll certainly face some losses and it is normal as long as your wins are more than your losses in the long time. Traders can take trades from lower time frame and only use the higher time frame to know their bias. Taking trades from LTF just need you to know the right entry and exit point in the market when taking the trade but it has to be in the same direction as the HTF. This is what most profitable day traders do and not necessarily swing trade and hold for days. Your vision and precision should align when it comes to taking trade.

[GreatArkansas]

My question is, are you going to enter a trade after seeing a drop or you will want to wait for the market to show you a clearer direction first before making a decision. There is something I noticed with bitcoin between today and last few days of the week. The price has been moving around and that reminded me how easily some traders jump into making a decision without properly analyzing it simply because they are afraid of missing out on the next move.
Sometimes as a trader you went ahead  to enter to a trade because you think bitcoin price is about to rise then the price suddenly drops after a little time, maybe in some hours or days, at that point, will you decide to close your trade because the market have moved against you or you will hold on to your position since you have a bigger plan or strategy you have set for the trade or begin to blame yourself that you entered the trade too early?
(....)

For me, this always depends on the trader. What technique of the traders, preferences or strategy.
But for me, I'm not into what OP said; it's like catching falling knives! You cannot guarantee that's the dip or final drop already. Since I trade more into confirmation, even if not a perfect entry, at least I'm comfortable and have peace of mind.

[laspol65]

Now the market movement is not in favor of any trader, but in the case of trading, every person should remember that he should use the least leverage. Many times, traders succeed and fail using leverage, those who use more leverage in the greed of getting money are more likely to fail. Those who want to succeed in trading by achieving little benefit can basically fulfill themselves with success, if so, then do not use all the money in the trade, divide the money into two to three parts.
You take the trade by observing the market movement with the first part, and then if the market is down, you can use your second level of money. But be careful not to use the third level of money easily, if you succeed so far, you can create the possibility of achieving more benefits, but through Bitcoin trading you will definitely have a greater chance of success.