Many traders are trying to catch the exact bottom of the market.
The reality is that most accounts don't get damaged because they bought too high. They get damaged because they keep guessing the bottom while the downtrend is still in progress.
I don't care about buying the lowest candle of the cycle.
I care about buying when the market gives me a reason to do so.
As long as lower lows continue to form, volume remains weak, and capital stays on the sidelines, trying to catch a falling knife only increases risk.
Yes, a strong rebound will eventually come.
The problem is that nobody knows exactly when.
Instead of chasing the perfect bottom, I prefer to wait for confirmation. I may miss the first few percentage points of the move, but in return I get a much higher probability setup.
In this market, capital preservation is more important than predicting the exact bottom.
Patience is a position too.
#Crypto #Bitcoin #Trading #RiskManagement #Investing
