General question: How do you know when to sell? - page 2.

tearfereon

full member

Activity: 138

Merit: 100

Quote from: odin99 on December 11, 2013, 04:24:50 PM

How do you know when to sell? Obviously you're shooting for the tip right before it starts to go down, but what are some of the signs to look for? I've been trading for a little while now, and either sell way too early, or way too late. i didn't study economics, maybe that is my problem.

there's probably threads on this in some of the other forums, but seemed like a good question to ask for newbie.

Dont worry hardly any traders call bottoms and tops perfectly. In fact Trading is zero sum game, so some have to loose and some profit

MAbtc

hero member

Activity: 826

Merit: 508

Technical indicators like RSI, Stoch RSI and Money Flow Index can help to indicate overbought levels, strong/weak buying pressure and momentum, and divergences from security price that can indicate an incoming reversal. MACD indicator looks at momentum and trend -- divergences from price can indicate incoming reversal, and crossover signals indicate when a trend is broken. Average true range looks at volatility, which can indicate the strength of current price movement. Aroon Oscillator can also indicate trend strength. There are other indicators, but those are what I find most useful.

You could research Eliot Wave Theory, but it takes much time to master. Also, look into chart formations/patterns -- ending diagonals, head and shoulders, flags and pennants, etc.

And remember that whatever tools you use -- there is no guarantee. This is purely in the realm of probability.

David Rabahy

hero member

Activity: 709

Merit: 503

I say don't ever sell until you have no choice, i.e. you have a need/want that you can't fulfill any other way. Use all other resources, e.g. US dollars, before touching your stockpile of Bitcoins.

Alternatively, create an investment profile for yourself (or get help) and then adhere to the diversification ratios chosen; rebalance occasionally (not every day!).

Attempting to time the exchange rate is not a healthy endeavor.

odin99

full member

Activity: 128

Merit: 100

How do you know when to sell? Obviously you're shooting for the tip right before it starts to go down, but what are some of the signs to look for? I've been trading for a little while now, and either sell way too early, or way too late. i didn't study economics, maybe that is my problem.

there's probably threads on this in some of the other forums, but seemed like a good question to ask for newbie.

Topic: General question: How do you know when to sell? - page 2. (Read 1026 times)