Will you enter a trade after a drop or wait?

[johnsaributua]

...

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.

But what you're doing is quite good, because it's not what we need now, but rather what we need in the future, when market conditions have stabilized. We don't yet know how our small purchases will translate into profits, exceeding the value we spent when prices were falling. It's true that anyone accumulating now isn't very visible. However, there will be a time when those who don't take advantage of the current situation will regret it later, as they didn't take advantage of the price that was right for accumulation, ultimately failing to build their own portfolio.

Each of us has our own history of buying Bitcoin. Sometimes some people haven't engaged in any activity at all in the past year, as reflected in Bitcoin forums either buying or selling. This is because they were surprised by the price decline that occurred in the past few months where the price decline was quite drastic making many people prefer not to do anything, in fact some are holding back from selling the amount they already have so that currently they are only monitoring market developments to make their materials to start again by buying regularly and regularly as they did when the price was still stable.

[citywise2]

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.

The market would be testing that trendline the third time after having rebuffed it a second time. So the trendline is a reasonable support level now and even if price should break downwards, from experience, it would definitely return to retest that level  before it finally dips further, that is if all all.  For me, I can buy at the break of that trendline and take profit when it's overbought and keep buying and selling within the channel.

[freedomgo]

Not every price fluctuations require traders to trade. Traders have to be patient and just wait for a clear set-up rather than to make a forced trade and regret the outcome. This is one way to avoid overtrading and at the same time capital preservation by not wasting your money on a negative trade, but wait for the perfect opportunity to start trading.

However, traders have different price preferences when trading, but one thing is clear, if you trade after a drop, it may carry a high risk level of losing most especially for beginners. Trading is profitable, but it can also be very risky for those who are trading blindly.

[Popkon6]

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.

If you want to profit in trading, the first condition is that you cannot take too much leverage. Those who take too much leverage are mainly at risk of losing money in trading and after losing money, they become more addicted to trading. If you want to profit from trading, then take a small amount of profit, if the market goes against you, then you should definitely be patient there. If the market is more down, then you should hold on tighter and if you have money, you should buy again, if the market is up as planned, then take the profit that you will make in this new trade before it gets close to the past price.
And you must be patient to make a profit in the first trade, if you can control your money properly, then you will definitely be able to make a profit. And do not be greedy for more money, those who are greedy for more money are the ones who mainly face losses from trading.

[Sanitough]

Why chose to compromise the outcome of your trade when you can wait for a genuine opportunity to appear in the market and start trading. I guess some traders aside from riding FOMO, they don't also think that trading needs a perfect market to trade. They are much focused on not missing every market opportunity to make profits, but they don't think in advance what could be the possible outcome if they trade not smart and wise.

Personally, I won't risk into trading where profits aren't highly guaranteed. I prefer to just wait for the perfect market timing and lessen the risk when I start trading.

[Futurexxx]

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.

If you just enters a trade just because the market drops without doing a proper technical and fundamental analysis, it shows that you are not trading, but rather you are gambling on luck, since you entered the market blindly. And if you want to stay long in the market or stand any chance of being profitable, jumping into a trade without doing any form of analysis is what such trader should keep of from, because such actions will never ends well.

But if you are a spot trader, it's not a bad idea to buy at any point you feel like it's a dip, even though their was no analysis done, because just by holding strong and waiting for the market to appreciate back will put you in profit unlike futures traders that cannot try such.

[slaman29]

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.

There are different ways of DCA but I like the 'average' part the most, and because BTC spends majority of the time in a low price, your average cost of buying is always lower than when you do sell. Obviously if you like to time then you wait for the dips but I'm a big fan of DCA because it removes timing away and relies on the low average cost (compared to ATH).

200 SMA is a good idea, I like it, but that still requires some monitoring that DCA completely ignores and frees you up.

FOMO buyers, always there every cycle. I guess we need the world to go round

GL!

[BItcoin Guy@]

If you just enters a trade just because the market drops without doing a proper technical and fundamental analysis, it shows that you are not trading, but rather you are gambling on luck, since you entered the market blindly. And if you want to stay long in the market or stand any chance of being profitable, jumping into a trade without doing any form of analysis is what such trader should keep of from, because such actions will never ends well.

But if you are a spot trader, it's not a bad idea to buy at any point you feel like it's a dip, even though their was no analysis done, because just by holding strong and waiting for the market to appreciate back will put you in profit unlike futures traders that cannot try such.

Most people are just getting into trading without proper understanding about how the market goes. They just need fast money, and trading needs more attention and patience before taking any decision. When you see the price is low and try to trade, and you didn’t do any research about how the market goes, you will end up at a loss and become frustrated because you lost your funds with the mindset of getting profit.

When a trader keeps losing in trading and doesn’t take a break, and gains more experience about it. He becomes addicted because he will always lose his funds and he will always try to get back his capital. Trading always favors people that are in it for the long term and understand how the market moves. Sometimes they get profit more than others that just enter a trade because the market is volatile and they predict different ways.

[YOSHIE]

Will you enter a trade after a drop or wait?

The crypto market conditions are like now, I probably won't just sit there without making a plan in crypto trading, In fact, market moments like now are an opportunity for me to trade to buy crypto assets when they go down, which is one of the strategies for me in carrying out trading activities, of course I don't do everything without a definite reason.

In my experience, the crypto market is currently down not as strikingly as Bitcoin is only 1-2% down, it goes up too, but what I see is that the price of crypto assets in the current market goes up and down, that's the current condition of the crypto market, honestly, to be safe when trading, just do it on Bitcoin assets, nothing else is guaranteed.

[Perfectbaby]

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.

The thing should be that they are trading with what they can afford to lose at this point it becomes that normal thing for a the traders, that is why when trading and you enter market immediately the market would start going against your direction and if you do not have enough liquidity immediately that trade will always gets liquidated because he wasn't actually have a total control of the market so is that common for them to lose as well. The thing they should be using lower leverage such as 1x or 0.5 to enable maintain a long duration.

[Finebone]

The most important thing is knowing what you are doing, not by trading the market blindly, because if the market drops and you enter without having a proper reason of your own why you enter, just because others are doing it, just know that you are just like chaft before the wind that will be swept away easily in the market, when volatility goes against you.

The best way to trade is by entering the market when you sees an opportunity that you are convinced may play out, not by taking any trade you see, just because you just feels like trading or because others are doing it. If you trade in such way, the market is going to teach you a lesson you will never forget sooner or later.

I will enter the market if the drop create an opportunity, but if it doesn't create any opportunity to maximize, I will still wait until an opportunity comes, because opportunity will always be there in the market, not by rushing that may get you burnt

[Stepstowealth]

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.

If you just enters a trade just because the market drops without doing a proper technical and fundamental analysis, it shows that you are not trading, but rather you are gambling on luck, since you entered the market blindly.

Trading based on luck or person is trading based on emotion because the person has a feeling that the market will perform a certain movement hence they go ahead to make a choice in the markets without waiting for proper confirmation, it is these exact people that the market usually fools and takes away all their money because of impatience in trading.
 I think old traders know how to wait for confirmation before choosing to put in their money in a trade because the number one goal for most traders is not to lose the money they have at hand even though they miss a profit making opportunity.

[Webutxo]

The market would be testing that trendline the third time after having rebuffed it a second time. So the trendline is a reasonable support level now and even if price should break downwards, from experience, it would definitely return to retest that level  before it finally dips further, that is if all all.  For me, I can buy at the break of that trendline and take profit when it's overbought and keep buying and selling within the channel.

You are going to lose your money if you make that kind of entry. At most times, you are going to be used for liquidity sweep. You see where the marked price which is trading almost at the main support, the price was supposed to react at that place because as an important support buyers are suppose to defend it very well but they did not, the price is staying there like it's nothing and that tells you that the place might not even be a major support, just swing low.

There should be a confirmation in that trade before you enter and you need to look for the important thing first which is look at the daily chart if it's trading down or it's up. It's more like up if it's printing green candles on the daily and sell if it's printing red on the daily, the 4 hour chart is what you need to use as your confirmation entry and then enter on the 15 minutes chary. This looks simple but it can be dangerous, just study more on market structure.

[Wind_FURY]

Not every price fluctuations require traders to trade. Traders have to be patient and just wait for a clear set-up rather than to make a forced trade and regret the outcome. This is one way to avoid overtrading and at the same time capital preservation by not wasting your money on a negative trade, but wait for the perfect opportunity to start trading.

That's obvious, but how do you actually apply that advice in your "trading" journey? What are your trading rules? Plus are you actually making enough money from your trades to tell yourself that you're a "profitable trader"?

However, traders have different price preferences when trading, but one thing is clear, if you trade after a drop, it may carry a high risk level of losing most especially for beginners. Trading is profitable, but it can also be very risky for those who are trading blindly.

"Trading is profitable" if we ask you? OK, do you believe you'll be rich by making "trading" your only source of income?

   ¯\_(ツ)_/¯

[EarnOnVictor]

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.

Traders had utilised various trading approaches that delivered money into their pockets, but the irony is: that same approach also made many traders lose their money, including those who benefited initially from it. Do you know why? It's because most of these approaches causes blind trading, where no basis/strategy approved the trade.

You cannot just enter a trade simply because you saw a fall, you must have a strategy that you need to consult to tell you if you should enter the trade or not. A strategy closest to what could detect that is the S/R and swing strategy. As risky as the striking level is, they could help you know the exact price to act upon. However, a tight risk management is advised in this situation.

[Odogwu-Blockchain]

The best way to trade is by entering the market when you sees an opportunity that you are convinced may play out, not by taking any trade you see, just because you just feels like trading or because others are doing it. If you trade in such way, the market is going to teach you a lesson you will never forget sooner or later.

I will enter the market if the drop create an opportunity, but if it doesn't create any opportunity to maximize, I will still wait until an opportunity comes, because opportunity will always be there in the market, not by rushing that may get you burnt

Yes, it's better to be approaching the market with that kind of mindset, entering when opportunity is spotted, is the clear indication that you have mastered the market, emotionally strong and not wasting more time studying and analyzing the charts as newbies do.

It's one of the draining habits when facing crypto trading, excessive studying the chart and then nothing comes out of doing that, just emotional frustration and stuff.

[BitBakerr1]

The best way to trade is by entering the market when you sees an opportunity that you are convinced may play out, not by taking any trade you see, just because you just feels like trading or because others are doing it. If you trade in such way, the market is going to teach you a lesson you will never forget sooner or later.

I will enter the market if the drop create an opportunity, but if it doesn't create any opportunity to maximize, I will still wait until an opportunity comes, because opportunity will always be there in the market, not by rushing that may get you burnt

It's one of the draining habits when facing crypto trading, excessive studying the chart and then nothing comes out of doing that, just emotional frustration and stuff.

Excessive studying the chart and then nothing comes out of doing that, just emotional frustration and stuff is part of life as a trader. Even if you have been trading for long and you have gathered enough experience you will still face an excessive studying of the chart without gaining. If you want to gain all the time’s after spending time in studying the chart you are going to be losing more often because even when you have seen that there’s a possibility of you losing your money you may still decide to take the risk because you don’t want to waste all the time you spent in studying the chart.
As a trader don’t see studying the chart as a waste of time except you just want to gamble.

[Jaweria parveen]

In trading, everyone gets losses and profits, and some get more profits, and some get a lot of losses, and this happens to every 10 people. When we start getting maximum losses in trading, we should wait for a good time so that we can work hard to succeed again. Trading is a very big trap in which if someone loses on losses, it is very difficult for him to take profits and invest again and again. There are many important points in trading in which it is almost easy to take profits by investing, so we should find such a time and also learn ways to reduce losses in trading, which will make trading easier for us. Therefore, when there is a lot of loss, it is better to stop for profit and if not to wait, then go to the market with good analysis. It also depends on the capital you have and the analysis you have.

[citywise2]

Why chose to compromise the outcome of your trade when you can wait for a genuine opportunity to appear in the market and start trading. I guess some traders aside from riding FOMO, they don't also think that trading needs a perfect market to trade. They are much focused on not missing every market opportunity to make profits, but they don't think in advance what could be the possible outcome if they trade not smart and wise.

Personally, I won't risk into trading where profits aren't highly guaranteed. I prefer to just wait for the perfect market timing and lessen the risk when I start trading.

You got me thinking - how do we know a genuine opportunity have appeared in the market? If that were possible, many a trader would be very rich by now but they are not. If you ask me, seeing that the market is about to make the third attempt on the support level is a good signal until a breakout eventually happens. On the first attempt, it is better to stay off and watch but on subsequent attempts, you have a better chance of going and coming out with profit.

[Odusko]

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.

The thing should be that they are trading with what they can afford to lose at this point it becomes that normal thing for a the traders, that is why when trading and you enter market immediately the market would start going against your direction and if you do not have enough liquidity immediately that trade will always gets liquidated because he wasn't actually have a total control of the market so is that common for them to lose as well. The thing they should be using lower leverage such as 1x or 0.5 to enable maintain a long duration.

Let not try to confuse ourselves so much, trading have alot to do with risk and at that while a sudden drop present good opportunity, but such a trade must be taken with a minimal consideration and expected losing possibilities too, because you may think that the drop have ended but after you enter the trade you see that price still keep dipping far below the price you met the coin in the first place, so sometimes is not about trading with money you can afford, but also about doing a proper market analysis and risk assessment before taking the trade.