BTC Price

A very effective (and easy) trading strategy for beginners

A very effective (and easy) trading strategy for beginners

Greetings. In this article, I will go over a very effective and easy to learn trading strategy that you can potentially make profit from.

Strategy: Crash Accumulation

Currently in this market, there were many opportunities to stock up on crypto when a large crash occurred (FTX drama, FED Interest rakes, etc). If you were one of those people who kept buying all of these flash crashes, even in BTC, you would be up in profit at most 100% (Depending on how you sold)

Shown here:

Maximum profit if you bought all of the crashes.

This shows that there is a clear correlation between buying crashes and profiting. The best part is that this strategy is relatively easy to master and understand. 

When to buy:

For this strategy, there are usually a number of obvious indicators that are freely available. Firstly, you can just check the news when a large drop in price happens. If, let's say, the news is very displeasing towards the crypto space (such as economic or crypto crackdown news) then that would be a very obvious indicator to begin accumulating. However, if you want to use more technical indicators, you can just use the RSI (Relative Strength Index) indicator on tradingview. If the daily or 4 Hour RSI is in oversold territories (Below 30.0) that would also indicate a time of accumulation.

The must-have skills out of all of this, however, is to control your fear when buying the dip and patience for the dip to occur.

When to sell:

Unlike buying, you could sell in various points in time depending on how long you want to hold your crypto for. For example, holding your crypto for over an extended period of time when the future is looking very good economically and selling when it hits the peak would be considered as a good selling point for long term traders. If you are looking for a quick profit in a shorter period of time, utilizing the RSI tool in trading view will be very helpful for this. For example, if the RSI reaches or almost reaches oversold territories (70.0 or over), that will indicate a time to sell and wait for the next dip.

 

 

 

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ThisGamerLikesCrypto
ThisGamerLikesCrypto

Blockchain gamer, investor, and developer.


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