We will cover some trade techniques ,
Lets suppose we open a trade in our fav PEPE ,
We buy it at ATH (all time high) 945 (will not use zeros) and it goes up , and then takes a deep dip. And suddenly we are in deep waters ,
DO not panic , suppose you bought it with MM (money managment ) than you can buy more and average it , or we will sell it during the dip ,
What is Money Management or Risk Managment .
MM is a way to control losses or buy or sell 50 50 ,lets suppose we buy it at 950 with half of our money and buy later with half of money on dip again , this is called average it to cut losses ,
But what if we bought it all of our money ? Because we dont give a shit about MM or RM ,
Then we will get off the train with half trade and catch it later buying back from bottom where we will think it is not going further down or its on support level , we will close half our trade ! Why not all?
In case if our luck is not at our side , maybe we close all the trade and it goes up? So we will close half trade and if we are in profit we will book half trade so if it goes up furture we will not regret .
What are Support Resistance levels ,
Support is a level where price bounce back 2 or 3 time and resistance is a level were price goes and stops , both levels there are big orders from institutions or stoploss orders which are being hit or target prices so price goes up or down and bounce back .
What are your thaoughts let me know in comments ,article writen by TheHadsan .
