Should trades be closed off only when the market is bullish
Should trades be closed off only when the market is bullish
When the value of Bitcoin increases a lot, we start trading more. Which puts our trade management in jeopardy, during which most of the time people face loss.
What is your experience?
An increase on the price is often accompanied by more volume and volatility, and this often means more opportunities to make money for traders and speculators, in light of this I do not see anything wrong with traders becoming more active at the time.
But could this increase on the activity of a trader bring more losses if they are not careful? Yes, but that is what trading is about, and anyone that is not willing to take this risk should give up being a trader and become an investor instead.
It’s easier to get green lights showing up all over the place, sure, but trading when rallying is a no-brainer, the problem is, if this is how you trade, then you’ll always going to get caught when the rally drops.
And you know what the result is? You are posting 50 +1% wins in the rally, and then losing 5 -20% when you get caught out.
So you’re right, but you’re also explaining why ‘better chances’ doesn’t equate to ‘making profit at the end’.
People make the same mistake gambling, like even myself. People think they should be betting on 1.01x because it’s easier to make money. Then they win 1.01x 50 times, and lose 1 time and go bust.
When crypto markets are rallying you should be trading more because it’s easier to make money. There are lots of opportunists and as long as you go long you have a better chance at making money.
Compare this to trading bear markets and sideways markets. Those are usually very difficult to trade. So you can trade those less but still have a hard time making money while now you can pretty much buy any meme coin and make great profits.