Learning when to buy and sell is actually simple.
Buy bitcoin or crypto-asset when prices are low and sell when prices are high.
However, if you want to get consistent profits when trading Bitcoin, then buy when “prices will rise, and sell when prices will fall”.
Don’t Buy Originally, Don’t Sell Originally
Back on topic, there is one simple way that will make it easier for you to know when the right time to buy and when the right time when selling.
However, for you novice traders may find it difficult to determine when the right time. Usually, novice traders experience impatience when they want to buy. Understandably, because I just got information or just received a short training on Bitcoin trading.
Then, you also buy Bitcoin without knowing that the price of Bitcoin is expensive or cheap. It is possible, you will profit only when trading first.
People who trade Bitcoin understand and know that it is not possible to sell positions when prices are at their lowest. A trader knows that a price level is called the lowest point or bottom of a downtrend, when the lowest point has passed. That’s what makes a trend following trader then buy positions.
In fact, you could be trapped by buying Bitcoin or cryptocurrency when prices are rising. Then the price turned back down. This can make you panic and stop trading Bitcoin.
Next, you are no longer profitable. Well, we will discuss how you can get profit consistently.
Study Graphs for Making Decisions
For those of you who are still unfamiliar about Bitcoin trading, explaining the term ‘buy when you want to go up’ is easier when done with a price movement model. The easiest way to see price movements is to look at a chart or candlestick which is a record of the performance of price movements. You will easily understand the conditions of the price movement of Bitcoin when you are looking at a chart. It could be that the price trend is rising or the price trend can be down.
Images like this, you will often see on any trading platform, not only cryptocurrency. Trading by looking at graph work like this is usually called technical analysis. In this case, you have to know what is resistance and what is support.
Support and resistance are critical levels used by market participants in making decisions. Simply stated, support means a level where supply is decreasing and demand is increasing. Well, at this time, the price will actually be ready to rise. When viewed through a candlestick, the price is decreasing. But in the near future, it will increase.
While resistance is the level where there are too many offers. While the demand has begun to decrease. Then, this condition, the price will fall. This can also be seen from the candlestick chart, where prices are rising and ready to go down. This condition often occurs because the market has begun to saturate or many traders who take profit or sell to take profit.
So, for you novice traders, the right time to buy is when the price has started to move up after the price left the bottom or the lowest point in a downtrend.
Likewise when selling. If you want to trade and get consistent profits, you have to sell when the price is going down a little or shortly after going up for a long period of time. Make sure, you are truly fortunate when you want to resell the Bitcoin.
Need patience and accuracy for you novice traders who trade Bitcoin to really be able to determine the time. Do not easily panic and must always be calm in every condition.