Post
Topic
Board Trading Discussion
Re: Why is everyone expecting continuous growth?
by
South Park
on 02/04/2020, 17:22:46 UTC
I don't know if it's only my perception but I constantly notice people who expect continuous growth. Whether it is bitcoin, crypto,
stock, they only see one side of things and never the opposite.
People who have such a kind of thinking are newbies when it comes to trading. No experienced trader can think about a continous growth in value of an asset or cryptocurrency without the price dropping back at certain times. For a health growth in value of an asset, after every rise in price, there is always a correction.
Besides continuous growth is not really desirable, after all if that was the case then the only valid strategy to make money in the markets will be to buy an asset and hold it forever, however we know that as a trader you can make more money than a holder and that is because periodically the price goes down giving you a chance to buy an asset for a very low price and then when the price of such an asset goes up again you can sell it for a good profit.