/biz/ - Business & Finance

>>55973941
You look at something that you want to buy because you consider it kinda low, then you see it dip more than expected so you buy. If you're not wrong about it already being low and it just dipped then hopefully you won't have to wait long before it bounces back up a bit, depending on the asset type it could be anything from 2% to 10%. So after a few days when your position reaches a gain in that range or reaches an expected level you sell for a modest profit and you wait for it to go back down, which maybe it does, maybe it doesn't.

So the idea is to get in low to put the odds on your side that it won't go far in the wrong direction, then take the first opportunity to get out with a modest profit. If you secure a +2% profit in two days, it might seem like not much, but if you draw a line on the chart between where in price and time you bought and where you sold, then you'll see that when you zoom out if you extend the line it goes up much much more steeply than the price can do over the longer term. So either you get in and out with a high slope, or if you go red for a while you baghold until you're green again and then you dump your bags at any point.

This graph shows my oil trades in May and June, my timing wasn't amazing, it never is, but with a bit of leverage (about 3x) that still doubled the size of my portfolio, even though that's when the price wasn't even going up.