Profit or Loss in the Trading Markets: The Tough Choices for Small Investors
introduction
Financial markets are currently experiencing high volatility, which poses difficult challenges for investors, especially small ones, to make critical decisions regarding managing their money. With prices falling significantly, some find themselves losing between 10% to 30% or more. So what are the options available? And how can one deal with this situation?
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Tips for investors in spot trading
1. Enhance assets and reduce average purchase price:
If you have enough liquidity, you can take advantage of the price drop to buy more assets, which will help to lower the average purchase price. This option helps you to minimize losses or make a profit at the next rise.
2. Dealing with liquidity shortages:
If you don't have extra cash to boost your investments, there are two options:
Exit at a loss: This is a difficult option but it keeps you away from greater risk.
Waiting: Waiting until prices rise to sell assets at a profit or with a smaller loss.
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The market at the moment
Sharp market declines are not a new phenomenon, but this time they are more pronounced. The recurring pattern is:
A big drop followed by a rise, then a small drop.
This pattern is used to push investors into making rash decisions such as selling at a loss during a rally or buying at a high price.
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Whale Strategy (Big Investors):
Whales rely on moving the market in ways that serve their interests:
Deluding investors into thinking that a decline is coming, in order to induce them to sell at a loss.
Raising prices suddenly to attract buyers again.
Flooding the market with selling, leading to a new decline and losses for small investors.
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Conclusion:
As a small investor, avoid being an easy prey:
Don't sell your assets at a big loss.
If you trust the market, hold onto your assets and wait for the right opportunity.
Focus on long-term analysis rather than getting caught up in short-term market fluctuations.
Remember, making money requires patience and good judgment, not emotional decisions.