When a downtrend happens, you have to be careful and careful. If your share price is experiencing a downtrend, this can indicate the stock index’s unfit for sale at that time. You can look for other stock indexes like in NASDAQ100 or wait for the trend to improve. You can also determine certain strategies to deal with this downward market trend. Additionally, you can also go to http://www.nas100brokers.com/strategy.html if you more strategies in trading stock indexes, especially if you also need trusted NAS100 Brokers.
Here are some simple trading techniques during a downtrend that you can use so that we can make the right buy and sell decisions:
Selecting Stock Indexes
Choose stock indexes that are worth buying according to fundamental analysis. Fundamental analysis is carried out by assessing the issuer’s financial statements as the basis for assessing the valuation of shares. Things to pay attention to in fundamental analysis include the company’s financial performance, the reference price of shares, and an evaluation of the company’s feasibility for investment. Determination of the purchase price of shares can also use technical analysis by looking at the trend (price movement) at the support level (buying level on the chart) and resistance level (selling level on the chart).
Time of Input Order
There are several things you can do when inputting orders in the face of a downtrend. First, if you don’t have time to sell when the stock index has decreased, one alternative that can be done is average down. Average down is an investment strategy where you make purchases in stages when the stock index price decreases. This is known as averaging down. Look for a long-term support level for the average down by making incremental buying. This technique is one strategy to reduce losses.
Second, you can wait until the market returns to a bullish trend. This can be seen from the patterns of technical analysis both reversal patterns and technical indicators.
During this “Bearish” downtrend market, it is very important to maintain risk and discipline, especially in cutting losses. If not, your losses will deepen.