Last Updated on Apr 7, 2020 by James W
Everyone thinks that buying Bitcoin or major cryptocurrencies is the only way to make a profit. But those who know about stock trading, knows very well the sellers can also make a decent income by taking advantage of the volatile market condition. But for that, you have to know the when the price of this digital asset will start to drop. Predicting such levels is very hard as you mostly betting against the prevailing trend. However, hundreds of professional investors are making a decent profit by taking advantage of the deeper correction of the bullish trend.
Learn to sell at the perfect price requires devotion. If you are prepared to devote yourself, feel free to read this article.
Learn about the support and resistance
You have to learn a lot about the support and resistance level to make a profit in trading. A support fuel up the buyers and the resistance push the price down as the sellers start to kick in. In most cases, the rookies depend on pivot points generated by the indicators. But the top traders at bigX prefers to trade with a manual trading strategy. They take the professional approach to finding out the key levels. With the help of the key swing, they have drawn the critical support and resistance level. Once the price of a certain asset starts testing the resistance, they look for a short trade setup.
Learn about the chart pattern
To trade against the major trend, the chart pattern trading method might be very useful. By learning to find the reversal chart pattern, you can sell BTC at the bearish breakout. Filtering out the key pattern is a very difficult task. Most of the traders are not used to chart pattern trading methods. Though the professional Forex traders are very good at chart pattern analysis, cryptocurrency traders don’t have those advanced skills. Those who have these skills are already making thousands of dollars profit by taking advantage of the sharp fall in the price. All you need to do is find the bearish reversal pattern and execute the trade with low risk.
Trade with low risk
As a cryptocurrency trader, you should sell BTC by managing the risk. You have to give priority to the existing trend. So, if you take high risk in trading, you might have to lose your entire trading capital. Try to come up with a simple approach by which you can take the low risk in each trade and trade with discipline. You can start with the famous 2% rule of money management and this will help you to make big profit in this market. Though it will be a tough task, soon you will be able to make huge profits. In the learning stage, you can start with a 1% risk while selling the major cryptocurrencies. Once you realize the role of technical, fundamental and sentimental analysis, you can slowly increase the risk to earn more money.
Trade with a strategic approach
Selling Bitcoin, Ethereum, Litecoin, etc. at the high is not a logical approach to making money. You have to think about the safety of your investment. There should be a solid reason behind the price drop. Try to learn about the economic bubble and you will be able to find the key point of the reversal. But a bubble trading strategy requires in-depth knowledge of the global economy. You have to get a clear idea about the supply and demand curve. Find the key point where the equilibrium of the market is shifted. Based on that trade the market.
To trade a reversal, you have been very careful. This is not an easy task and even the pro traders often find it hard. As the risk increases, so does the reward. So, learning this technique can be a great help for your future.
