should i buy a rising market?

I was away from my laptop making some tea and by the time i came back i saw that price was already rising upward fast, do you think i should have jumped in and bought or i should have waited for a retracement which may never come till the trend ends?

D
@dominykas - 1 year ago

The low risk thing to do is to buy at the beginning of the up trend. But if i missed buying the low then yes i would still buy a rising market but i would place a tight stop loss below the current candle.

S
@segun_33 - 1 year ago

I think you should be patient and wait for another opportunity where you can buy at the early stages of the upward trend, it is not good practice to long the highs.

This is also why you should have specific trading hours where you must be on your laptop and not miss any opportunities.

I know some people do long the highs, but these are mostly hedge funds and high frequency trading algorithms who have hedged their risk in ways you may not even think of. But for a retail trader, longing the high is too risky.

Quoted - dominykas

The low risk thing to do is to buy at the beginning of the up trend. But if i missed buying the low then yes i would still buy a rising market but i would place a tight stop loss below the current candle.

If I want to buy a rising market I wait till i see a small hammer candlestick pattern, then i get in, i don't know if this corresponds with the common practice but it works for me.

J
@josiah_edem - 1 year ago
Quoted - randolf_mercer

If I want to buy a rising market I wait till i see a small hammer candlestick pattern, then i get in, i don't know if this corresponds with the common practice but it works for me.

If you must buy a rising or falling market, which is too risky, use the Fibonacci retracement tool and set your stop loss above the closest Fibonacci level to your entry. Look at the image i attached, there is a falling market and stop loss can be placed above the closest fib level.

The idea behind this is that the fib level is supposed to stop price from moving in the opposite direction but if price breaks any of the fib levels, then it could mean the trend has ended.

S
@skyfall - 11 months ago

I don't see anything wrong with buying a rising market. They say the trend is your friend so if the market is in an uptrend i am definitely buying and setting my stop loss at the last break of structure

Y
@yokoyi - 5 months ago

One way to buy a rising market is to wait for price to come down (series of red candles) then you wait for price to start rising and once it closes above the last red candle, you buy.

H
@headies25284 - 5 months ago

A rising market indicates a bullish trend but it’s not enough reason to execute a trade. There will always be a retracement in every rising market, you need to position yourself for those retracement to be able to be a part of the bullish movement.

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