Selling high and Buy back at low is not Easy
Buying the dip is certainly a good idea to follow in crypto and even any market but its not that easy. I believe that sometimes we get the opportunity to buy the dip in crypto and it is good to do some discounted shopping. People also follow and buyback at a lower price but sometimes it does not work.
It's difficult to determine the bottom price for any coin and sometimes it happens when we buy then the price goes even lower and we feel like we have missed their opportunity. Its a market and things cannot be predicted completely however based on research and study we can plan out the activities but again things can go another way around. Everyone wants to buy at a lower price but the reality is that many people do not get it unless they are really experts in the market. Even expert lose their opportunity as this market is volatile and things can go against the prediction.
Another point I would like to mention hear that some people say that we can sell at a high price and buy back when the price is low. This also sounds good but comes to the risk if in case the price does not fall then we will not be able to buy back. It does not always happen but sometimes happens and even I have gone so a similar situation couple of times. I believe that if we have the patience then only these strategies are good else you may end up selling at a higher price which is good but buying back might not be easy.
With hive, I have tried strategies where I sold out at the higher price, and then I had to wait for a couple of months to get the lower price. It is because I do not want to lose my holding as the plan is to grow it more and there is no thought as of now to sell off and book profit.
I am a long-term believer in the hive and try these ways to grow my state. I am not in Harry and this is a reason why I tried to grab the opportunity whenever I see a pump between 15 to 20% and a dump of more than 10%. Usually, it does not stay long but sometimes. This is not financial advice because it is highly risky sometimes I will leave and if you are doing it then please do your own research first. The only thing that can help you in such a strategy is to have patience and wait for the right opportunity.
It is also important to track the market closely so that you do not miss the pump-and-dump opportunity to sell or buy because most of the time it does not last long. We need to execute the trade at the right time to bring more profitability and this is how we can book the profit. There have been instances when I got to know about such a pump in the price when I got up and by the time I was able to open my laptop, the price was normal. Keep on looking for opportunities and grab them whenever it's available.
Thank you
@tipu curate 3
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Dear @alokkumar121
Being lucky to buy the dip is a good idea. But trying to chease and time those dips ... that I don't consider to be a good idea at all. It will only cause loads of stress and make us lose our hair :P
My suggestion is to learn to swing-trade. It's much more efficient way to profit and less stressful. At least that's my impression.
You've mentioned also selling high and buying low. This is what I do and it's not as difficult as it may sound. All I do is wait until one of tokens in my porfolio will experience a pump in price exceeding 40-50%. Then I sell and set up buy order somewhere in the middle between old price (before pump) and sale price.
My assumption is that in bear market such a rapid pumps will finish with a dump. And in 90% of cases it is what will happen.
Hope you're having great weekend :)
Cheers, Piotr