Re: Why people are buying when the price is going up and not when it is down

Quote from: okala on Today at 06:49:45 PM

Quote from: mr.smith on July 30, 2020, 09:08:19 AM

I notice that when there the price is going up so many people are joining the train and they also buy because the price is going up and they are going to make a profit, why people are not buying when it is down when the price will eventually go up and they can make a lot of profit. Huh

There is this principle in trading and the principle is called "the trend is your friend" you hardly lose if you can trade along the trend line. When the market is at the top or down is always the most risky place to place a trade as it always go against most of the trading positions.

Trend following for me is one of the effective strategy when buying a coin. Even in stock trading this has been a good strategy because it can definitely create profit. People can buy when the price is low however buying in a down market just as @okala said is risky because you don't how it will behave. On the other hand, in trend following you know that it will continuously go up the only thing you should focus on is to know when you should take profit.