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There are many philosophies and many thoughts on when to buy a token, but to time the market is very hard.
Because many people (smarter than me and you) tried and failed multiple times.
SO WHAT TO DO?
You have to find your right time to enter the market.
Easy to say, hard to do.
I found out two patterns that (to me) are the most interesting to find in a token that I want to buy:
Number 1:
CUP AND HANDLE
If you want a deep definition of it, you can find it
I think the image speaks alone.
Ideally you want to try to enter when a token is forming the cup (on the downward side) but because it's hard to find it or to understand when it reaches the bottom of it, any entering point on that area is okay (of course the lower the better).
Remember sometimes a downward side is a path to death, so you have to do your own research and understand if the token is a good token.
Number 2:
Accumulation Phase.
you can find a good explanation of it.
And again an image will clarify the concept:
Sometimes accumulation phase is a process of a Cup and Handle.
And again because it's hard to time the market, it's hard to understand when it's the bottom of the accumulation phase.
You can see both phases on the Bitcoin chart of this year.
Just to clarify these are not formulas that you will always find, and they won't always work.
Instead you don't want to enter a market in the Euphoria area.
To clarify:
The Euphoria area is when a token (after it went on a discovery price phase) went parabolic and you don't want to buy on top of the price.
Essentially you want to buy in the disbelief (accumulation phase) and the hope phase.
Enter the market it is always hard, and it's harder to exit it.
To have an exit strategy (and a stop loss) is very important.
Be careful out there, be aware of shit coins and scammers!
TRADE WELL!
PLEASE REMEMBER
DO YOUR OWN RESEARCH before investing your money.
PS: I’m not a financial advisor, never invest all your money in crypto
