BTC - Buy Low Sell High StrategyEveryone is asking the same question: When and where will Bitcoin find the bottom and where should I enter...?
To be able to answer this question at least a little bit, we present you the strategy "Buy low and sell high". This is actually the simplest strategy in investing, which is nevertheless done wrong by 95% of investors, because buying low and selling high is only a matter of opinion.
For one person Bitcoin is low at 50,000$ and he buys and for another person Bitcoin is low at 10,000$ and he gets in.
Therefore, the successful implementation of this strategy is based on precisely predefining the low and high points in order to be able to determine where a "low" and where a "high" is.
Entry areas
Defining this is harder than one might think, especially in such volatile times as we are currently experiencing.
Therefore, we do not focus on lows, but areas. We delineate the different areas with the help of trend lines and horizontal resistances in order to be able to determine, on the one hand, how low it could fall and in which momentum it is in the individual areas.
Accordingly, we have also shown the areas in gradient colours. The redder the areas the more bearish the momentum, the greener the more bullish!
You have to look at this the other way round in terms of investment strategy:
The redder the area, the larger my entries should be.
The greener the area, the larger my exits, i.e. profit-taking, should be.
Examples of strategy implementation
If you are only waiting for the one perfect entry and the one specific exit, you will probably have very little success. It is much more effective to enter in steps in such volatile markets:
According to market conditions:
You stay constantly on the chart and try to follow the individual levels and react to them. You are thus more spontaneous and can intervene manually.
Light red: invest small amounts occasionally
Red: invest medium-large amounts more often
Dark red: invest large amounts more often.
Light green: take small profits occasionally.
Green: take smaller profits more often
Dark green: regular larger exits/profit-takings
On the basis of fixed predefined entries
You set predefined orders for each entry range (light red - dark red).
E.g.: you divide 100% of your Bitcoin capital as follows:
Light red: 20%
Red: 30%
Dark red: 50%
For each of these areas you now define a price level in this area and place a fixed buy order with the predefined amount at the price level.
You can keep the amount of work small and place only 1 order in each range or if you want to be on the safe side, you can also plan e.g. 2-5 entries in each range.
You can set the weightings and entries (number and value) as you see fit, these are only intended as guidelines so that you can get an idea of what they mean. For example, we are only buying in the red and dark red areas, but not yet in the current light red area.
We would advise you not to plan any exits yet, we will do that together when the time comes again.
Further BTC course
As already mentioned, the redder the area, the more bearish. The green areas represent the price levels from which we would claim, if we reach them, to become bullish again and thus the next uptrends could come. The greener the area, the more bullish for the long-term chart.
We hope we could help you with your entry strategy planning!
