Will you enter a trade after a drop or wait?

[Big Dirams]

I think it will make more sense if all traders understand the market structure better before making an entry in any market. From the screenshot he shared above, you can tell that there is nothing clear about the chant, we only see that the candles are doing lower low, the last candle on the weekly chart is looking like the market want to dump but it's not even close yet if it is gong to close as bullish or bearish. I don't think this is good for entry.

I prefer to leave if this is sideline or scalp between 4 hour time frame, it's better than following this chart. I don't even know why he decided to long chart on the weekly chart because I don't know how he tries to manage his trade. Before he can make money from this candle, it will take months to know if you afr going to be profitable or not. Small time frame are better than what he presented as screenshot.

In my opinion there is either two reasons why the OP uses such timeframe.
One could be maybe he just uses the timeframe for clearer picture for us to see and clearly understand the movement of bitcoin he’s talking about or maybe he’s a swing trader so that why he uses that timeframe because it only swings traders that uses such timeframe because there analysis are always on days or maybe weeks or even months so maybe that the reason he chooses to use that timeframe.

But seems you are a day trader that why you emphasis much on hourly timeframe or even minutes timeframe if possible because your analysis are made on this timeframe and scalpers also do uses this little timeframe too.

[DPHOR]

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.

There are some traders that turns into investors whenever they are trading and noticed that the market has gone against them you will see them holding back, in fact when the drops they accumulate more to increase their profits, this is directly to those who thinks that trading when the market drops another way for them to lose also then they stop trading and turn into partial holders for the market to bounce back then they continue their trades.

[Arenga pinnata]

When the market corrects or is undergoing a correction, I usually wait for the right moment to enter. However, the positions I take are typically short or medium term only.

However, determining the right time to enter is the hardest part. This is because it requires patience to wait for the market to stabilize and for the panic among traders selling off to subside. This is usually signaled by prices holding steady at support levels or when a higher low forms.

But my favorite moment is when the market corrects rapidly and forms a long lower shadow. After that, the market usually recovers quickly. So I always try to enter quickly. However, we must also exit immediately once the market recovers and we’ve made a profit. even if it’s not much. This is because what we need to watch out for with the formation of a lower shadow is that, at some point, the low of that lower shadow is almost always retested with a fairly long correction and sometimes even breached slightly lower. I’ve observed this for quite some time, and well, it’s become a common pattern in the market.

[Alphakilo]

A drop in the market for a trader is a cue to observe one's own psychology and strategy before jumping in because it is here that reliance on candles fail and that's why risk management skills is important to a trader.
Risk management skills would let a trader know that their capital is much more important to be preserved than to be risked in opening a position and hoping that things play out right.

Know the best timeframe that would dictate your strategy, know the perfect position sizing to use so as to not risk your capital, allow the candle close near key zones before entering a trade after a drop.

[jossiel]

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.

Why not just stick to one exchange if you'll do grid trading? is there an advantage towards that because I mostly stay on one exchange when I trade.

And only moves to another when I trade again after the first one. Since grid trading isn't that requiring much about having multiple exchanges or that's the point of that strategy?

Because what basically what's done is you set order limits for buy/sell and you're okay with it as long as it's getting filled.

[Franctoshi]

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.

Yes, using the higher time frame alone does not even guarantee you profit but gives you an edge over the market because it helps you understand the overall direction of the trending market compared to someone who's trading the smaller time frame. Your profitability depends on your time of entry and exiting, couple with your understanding and management of risk and your trading psychology.

[Wind_FURY]

The question isn't will you enter or wait, because if that's your question, then you're trading at whim and not at strategy, not based on what you believe and have gathered evidence to support your belief.

Because a guy who likes to enter a trade after a drop puts a limit order. If price drops and hits his entry point, he has a trade. Finito

BUT for Bitcoin, plus with the CURRENT situation in the market, it's ABSOLUTELY good not to wait and enter NOW. This isn't merely an opinion because there's a very strong argument that the current price point is near the bottom of the current Bear Cycle.

Buy every DIP, and HODL.

[justdimin]

Knowledge is all that matters, even better if you have experience as well. A good trader will never trade against the market very quickly, because they would know that reacting very quickly to the movements of the market can be dangerous, unless there is a clear trend that shows a possible reversal. After that, it's important for a trader to use stop-loss with the trade, unless they know they have enough backup to let the trade going for as long as it takes because they can make more trades when the market goes lower, but this works only in the spot market, if it's futures, then you shouldn't trade without a stop-loss at all. If the stop-loss gets hit, you should wait for another opportunity and make another trade, again with stop-loss; if you are a good trader, you won't have all your predictions wrong.

I've seen a lot of people make the mistake of not using stop-loss when using futures only because they believe they have enough money that they can add as margin or extend the trade amount to drag the entry price closer and be able to close the trade in a profit if market moves up a little, but that doesn't work all the time. I've seen people losing all their money because of this mindset, because if the market is continuously going in the same direction, it will never reach the point where you entry point is no matter how much money you keep adding into the trade, your liquidation will reach before the entry price.

[EL MOHA]

I've seen a lot of people make the mistake of not using stop-loss when using futures only because they believe they have enough money that they can add as margin or extend the trade amount to drag the entry price closer and be able to close the trade in a profit if market moves up a little, but that doesn't work all the time. I've seen people losing all their money because of this mindset, because if the market is continuously going in the same direction, it will never reach the point where you entry point is no matter how much money you keep adding into the trade, your liquidation will reach before the entry price.

Although I am not against stop loss but stop loss isn’t everything, in fact those who are most fond of using stop loss are those who uses high leverage and huge capital but they are others who use this and set their stop loss considerably at a good price to avoid big losses. You can simply trade features without using stop loss and not lose all your money because the position size actually determines your loss, those who do not actually use stop loss usually uses considerable capital, it is mostly isolated margin and also uses very small leverage highest is 3% and this helps them take away the liquidation price very far away from them. The thing is to understand which you’re using and be consistent with it and don’t gamble but rather trade

[citywise2]

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.

When you are done ascertaining the market direction with a higher time frame, preferably the daily time frame, you are now at liberty to trade in any time frame for as long as you stay true to the market direction you discovered in the higher time frame.

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.

Markets can drop in price for a number of reasons, but the most dangerous is when whales want to buy at a low price, they can push the price down with their enormous buying strength  so that they can now buy at a lesser price.

[henmark]

Knowledge is all that matters, even better if you have experience as well. A good trader will never trade against the market very quickly, because they would know that reacting very quickly to the movements of the market can be dangerous, unless there is a clear trend that shows a possible reversal. After that, it's important for a trader to use stop-loss with the trade, unless they know they have enough backup to let the trade going for as long as it takes because they can make more trades when the market goes lower, but this works only in the spot market, if it's futures, then you shouldn't trade without a stop-loss at all. If the stop-loss gets hit, you should wait for another opportunity and make another trade, again with stop-loss; if you are a good trader, you won't have all your predictions wrong.

I've seen a lot of people make the mistake of not using stop-loss when using futures only because they believe they have enough money that they can add as margin or extend the trade amount to drag the entry price closer and be able to close the trade in a profit if market moves up a little, but that doesn't work all the time. I've seen people losing all their money because of this mindset, because if the market is continuously going in the same direction, it will never reach the point where you entry point is no matter how much money you keep adding into the trade, your liquidation will reach before the entry price.

I disagree, because the time to enter is usually after a big drop. Doesn't mean that after a big drop there won't be any further drop, but if you wait a bit more, you will see it stop and then recover, but not fully. For example, if the price goes from 70k to 60k, then it means that it will recover to 65k  or something like that. That is why the smartest decision would be to see the bottom, and then get in as soon as possible when you see it.

The drop will happen very quickly but the increase will happen very quickly as well, so you have to be careful when you get in and get out and be careful. After it reaches those levels it could drop even further, but you will have a period where it will be down and up, so if you time it right, then you should be able to get some money out of this.

Of course, it is a big risk, and you do not need to do something like this, you could always do DCA and long term holding, and you could make some money, so there is no reason why you should be doing this. I am just saying this because there are ways where you could make money this way, but I am in no way saying that this is the best way to make money, for me, it has always been long-term holding that gives the best results.

[LUCKMCFLY]

Of course, it is a big risk, and you do not need to do something like this, you could always do DCA and long term holding, and you could make some money, so there is no reason why you should be doing this. I am just saying this because there are ways where you could make money this way, but I am in no way saying that this is the best way to make money, for me, it has always been long-term holding that gives the best results.

The good thing about HODLing is when you have a large enough amount of money to be comfortable, but I think that when there are dips, you can take advantage of them. I've seen many people say, "I hope the BTC market returns to prices of $30k or $40k," and they buy a lot of BTC, but that's not the reality. It might fall at some point, but I don't think it will go to those levels. And since the reality is different, there's nothing to lose by being able to buy on dips with the DCA intact. The idea is to have more BTC every day. I do think that one day BTC will reach $1M.

[LastKiss]

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.
~snip~

Bitcoin Chart | 4hr Timeframe

TA is very important before making any trading decision, for example we saw Bitcoin drop from $65k to $62.5k but I wouldn't enter the trade immediately, some quick factors why I'm not enter the trade

1. The weekend is approaching and as we know, the market can be unpredictable during weekends, we could see a pump or vice versa.
2. Another sweep down to $62k could happen (liquidity below) if that happens over the weekend, I would consider entering the trade.
3. The price reached my trendline which is a good reason for me to enter the trade. However, looking at the previous Lower Low, it seems the market is still trying to build a base and the bounce from the recent drop isn't strong enough to give me confidence.

This is just my quick outlook on the current market wether I should enter or not. Of course, we can also use other indicators to make our trading decisions clearer. Never force a trade and rush your decision just because you see an opportunity always consider the risks as well.

[maydna]

I just prepare myself to analyze deeper to see where the price will go. I don't take a buy order if the price down and just wait for a while because this could be a little sign to decide later. If the line drops far from that moment, I will split 3 or 4 order buys and see if that can be filled soon and prepare my stop loss.

If the price re-bounce after I place the order buys, I don't just buy but still wait just in case the price will down for a little. But that is only if the price show the up movement but this will not easy to analyze as the price can moves suddenly to anywhere.

The important thing is analyze the market so at least you know where the price will moves so you can determine and predict what next will happens.

[MarjorieZimmermanGinger]

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.

Professional traders are not always involved in trading because they see the momentum when it's appropriate to trade. Usually, someone who engages in trading excessively is someone who has no direction at all and doesn't have a way to determine the direction of their trades properly. The more professional a trader is, the less they enter the market because it's better to wait for the right moment. Many people fail in trading because they engage in it excessively, and in my opinion, very few people are successful in day trading.

When is the right time to enter the market? My focus is on corrections or retracements, allowing us to manage our trading direction using various strategies rather than getting caught up in FOMO. Also, don't forget to use a stop-loss, as this can limit losses in situations where the market moves against our trading strategy.

[slaman29]

BUT for Bitcoin, plus with the CURRENT situation in the market, it's ABSOLUTELY good not to wait and enter NOW. This isn't merely an opinion because there's a very strong argument that the current price point is near the bottom of the current Bear Cycle.

Buy every DIP, and HODL.

I would say a guy who understands this already put in limit orders when BTC was at 90k But you're absolutely right don't wait get in now!

BTW With DCA its even easier and automatic, yes I agree now's a great time to buy but DCA means you're already doing it, easy right?

[Big Dirams]

BUT for Bitcoin, plus with the CURRENT situation in the market, it's ABSOLUTELY good not to wait and enter NOW. This isn't merely an opinion because there's a very strong argument that the current price point is near the bottom of the current Bear Cycle.

Buy every DIP, and HODL.

I would say a guy who understands this already put in limit orders when BTC was at 90k But you're absolutely right don't wait get in now!

BTW With DCA its even easier and automatic, yes I agree now's a great time to buy but DCA means you're already doing it, easy right?

That true waiting is waste of time and missing out opportunities so why not just grab this opportunity and buy as soon as we can. So far our discretionary income is available then we can start our accumulation and get to buy bitcoin at any price without any delay, and with DCA tagging along as a method then the journey is much more easier and convenient because we just have to keep up with buying and buying without making any observations about the market price or even getting scared of any market price.

Well, I’ll say with DCA then we are surely doing the investment the easy and comforting way or is there any other convenient and relaxing ways than this DCA method because I don’t really think there is. DCA doesn’t only offers comfort but also opportunities and a lot of options.

[Wind_FURY]

BUT for Bitcoin, plus with the CURRENT situation in the market, it's ABSOLUTELY good not to wait and enter NOW. This isn't merely an opinion because there's a very strong argument that the current price point is near the bottom of the current Bear Cycle.

Buy every DIP, and HODL.

I would say a guy who understands this already put in limit orders when BTC was at 90k But you're absolutely right don't wait get in now!

BTW With DCA its even easier and automatic, yes I agree now's a great time to buy but DCA means you're already doing it, easy right?

But with DCA, some amount of their capital were already used to buy Bitcoin near the All Time High, instead of saving them to Buy the DIP near the 200-Weekly SMA Line. There's definitely those people who perhaps have gotten very excited and FOMO when Bitcoin was going to All Time High and used more of their capital to buy because "You might miss the Uppity".

Laughable.

[liasbaa]

I just prepare myself to analyze deeper to see where the price will go. I don't take a buy order if the price down and just wait for a while because this could be a little sign to decide later. If the line drops far from that moment, I will split 3 or 4 order buys and see if that can be filled soon and prepare my stop loss.

If the price re-bounce after I place the order buys, I don't just buy but still wait just in case the price will down for a little. But that is only if the price show the up movement but this will not easy to analyze as the price can moves suddenly to anywhere.

The important thing is analyze the market so at least you know where the price will moves so you can determine and predict what next will happens.

The most difficult thing to understand is the signal of price fluctuations due to the lack of market forecasting. I have been buying small amounts during the declines in recent months. It seems to me that the coins I am buying is going to depreciate further. I have chosen this period of decline in an attempt to diversify my portfolio.

My strategy for the past year has been to bought during the price increases and that strategy has been positive for short-term trading. The best strategy to buy regularly in a falling market is to follow a stop loss strategy. If you can stick to the stop loss strategy and try to reduce the average purchase price by buying regularly, I am almost certain that you will make a lot of profit.

[SamReomo]

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 use some modified indicators that work well for me, I've tested those on Bitcoin for months and years and overtime I've improved parameters of those indicators. I wait for a better dip to enter a trade and when it happens I mostly hold that trade for sometime to see my PNL going green and in most cases it goes green within a week.

I've my total capital divided into 7 parts and that means I can average my position when it goes badly in red PNL, but during huge dips I often read news to know what is the cause of the dip. As Bitcoin traders and investors we know that after the dip price always gets some correction.

That's why it depends on traders how they trade, some people are greedy who want to have maximum profit from the dip and that's why they use leverage but I mostly trade on spot market and that's why I don't fear any kind of liquidation. Either I'll make some profit from the trade or consider the buy as part of my DCA plan, it works well for me.