I don't know much about stocks but i know that in stocks if you think certain stocks will fall, you can short them and make money. However with bitcoin/altcoin, can you short or is that not possible? Also isn't it true shorting is very dangerous because you can lose a lot more shorting than investing in bitcoin/altcoin?
Shorting is possible but on certain pairs only that are available in the margin trading section of Poloniex. Don't know much about other exchanges whether they allow shorting or not. I have always witnessed that both (bitcoins and altcoins) never fall altogether, but it goes like either Bitcoin or alts.
I know when prices drop, that is when you want to buy because you want to buy low and sell high. So what would be the strategy if bitcoin/altcoin stays the same or keeps dropping etc? Thus its all red and stays that way? Of course you could buy... then wait till it goes back up and sell to make profit. But you don't know how long that would that or it could possibly not and keep going down etc. I understand that if you want to daytrade, well you buy it at certain price then sell at certain price to lock in profit. Thus if prices go higher and you bought earlier, you will make profit if you sell. But besides buying the coin at low prices, you aren't making any money at the moment.
My strategy never allows me to get into altcoins unless Bitcoin's rally stops somewhere. You will never see any altcoins go up, you know why?
Because even if they are depreciating in terms of Bitcoin value, they are still appreciating or remain stable in fiat values.
My tip: Never trade (especially day-trade) when market of Bitcoin is booming because there are just random pumps that take place in altcoins and others just get dumped.
So what do daytraders do then? Thus daytraders are on the computer looking at the markets all the time etc. So if everything keeps going down, how do they make money? If prices keep dropping for a long time, then there is no money to be made right? Or is there? Because what do daytraders do if the market prices keep going down etc? Sure you can buy a lot of coins at cheap prices but you don't know how long it would take to go back up etc.
I never daytrade, but I believe that doing it at such times could lead to some exceptional losses and you should never follow any tips and/or bot signals during this period as I have also seen some very undervalued coins falling back to worst for no reasons but just due to bitcoin rally. The simple fact, when Bitcoin goes stable or starts correcting towards down, alts start to catch up the momentum and vice versa.