When to buy in bearish market? When to sell in bullish market?

In dips one problem is that we don’t know how down can the market go. Then what’s a good time to buy without losing a lot and without missing the opportunity to buy cheap? Similarly in bullish market we don’t know when is a good time to sell by maximizing the profit. But we can have some strategies to help us.

I give an example by using $DOGE coin as it hit near 0.5 and now is experiencing tremendous dips.

Let suppose we want to invest 50$ in it. We divide it in several steps, price ranges. In each step we buy a portion of it. Lets do it with a concrete example.

First define our lowest expectation from the price of coin. Of course the very lowest is 0 but to gain more we may be more realistic and eg set the lowest to eg 0.2, the price before the November hype.

Then based on budget fix a step budget, eg 1,5,50, whatever you are more comfortable with. Here I take 5 which means 5$ . Let’s call this number B. Then again based on budget we divide range 0.2 to 0.45 into several steps. Let’s suppose we divide it in 10 steps let’s call this number S . So the gap is 0.25 and it means we have 0.025 differences between steps.

Starting from 0.45 the first step is 0.425, second is 0.4, third is 0.375 and so on.

Then what we do is to buy N$ doge in every step. At the end we bought N.B$ worth of Doge. Here it is 50$. But what happens if doge doesn’t reach the bottom? We managed to buy some in between prices. Not all of them were ideal but many are fine.

We can set our first step lower, choose better bottom, shorten the gap between steps incrementally, or use doubling technique, that is in lower values buy more and such variations.

This definitely is just a beginner strategy but it is less stressful and you don’t miss dips if they ever happen since it is simple to set automatic buy.

Similarly for automatic sell in bullish moments, again we can use similar strategy in a reverse direction (set upper limit and incrementally sell more).

Let me know what you think and what is your strategy?