Trading tips for all season.
Traders do not aim to be right at all times, but to be looking for the avenue to place profitable trades. This means that if the market is not going in the direction of the analysis made, you as a trader is expected to weigh your options so as not to keep losing money in the bid to prove his trade setup right. In the bear market, traders device plans and stick to the ones that keeps them profitable.
The bear market occurs when the market is down by more than a 20%, supply is usually higher than the demand when this happens. This is a period of time when investors pull out their money to cut their losses in most cases. The market becomes unpredictable and FUD (Fear, Uncertainty and Doubt) will be every where, this period can be profitable for traders when you happen to follow the right strategies and be more careful with risk managements.
There are few strategies traders can follow to be on top of their game when the bear market is here.
=> Take a short-selling position: The trend is your friend, there is no point in trying to fight the market. If the price is falling, the best thing to do is to go short (sell). It is to be noted however, that the market can also move either way and this is where proper risk management comes in. Always use patterns to short sell.
=> Find a good entry position: This involves using the right technical analysis to find a good entry point to enter the trade, a good entry point is required to make money. So as not to buy the top and sell the low.
=> Take profits at regular intervals: This is no time to leave profits to accumulate, as the market might retrace. There must be a plan for you to take profit at a convenient interval of your choice, this will be a wise thing to do so as not to lose profits made to the market.
=> Set a stop loss order: This is very important, as one is not expected to be monitoring the trade all day long. The other is needed to enable you exit a position automatically once a certain, less favourable price is reached. Part of risk management.
=> Swing trading: This is a type of trading that involves a trader attempting to capture short- to medium-term gains over a period of a few days to several weeks. Swing traders primarily use technical analysis to look for trading opportunities. When successful, you are only looking to capture a chunk of the expected price move, and then move on to the next opportunity
=> Buy dips: As a trader, you can screen for extremely oversold coins using RSI (Relative Strength Index). RSI is known to be the indicator used to identify coins that are oversold, especially when RSI < 25. You can look for a coin like this on OKEx, a world leading cryptocurrency exchange, and make sure they are still in a Long-Term Uptrend.
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