Fastest way to Profit!
Fastest way to profit!
Dead Cats!
The fastest way to profit in trading is by playing so called dead cat bounces. these bounces happen often at the top , however they could also happen at the bottom of a trading range. a dead cat bounce is simply the price quickly declining, people panic and sell off. You then buy their fear, because you know that a bounce is going to happen, you anticipate that as a trader.
It's like a bouncing ball.
Trading is like a bouncing ball, the price will decline fast and then bounce back up, the dead cat bounce. After it goes down again it will fall quickly again, another smaller dead cat bounce until they are finally done and a new market cycle can begin.
How can you be prepared for this massive bounce?
When you see either a parabolic rally or a price really low, try to identify the support levels, now if they break then it's time to buy because what price likes to do when support breaks is to re-visit those levels. You can anticipate this by putting buy orders below the support level, put them in intervals and catch the panic. I'll show you some examples of some bounces: