Hello BT Traders,
I hope that you’ve been having fun with the weekly challenges. It appears all of you do enjoy this way of earning while learning. 🙂
From what I’ve seen over the past 2 months is that each of you know how to pick a good trade setup based on basic info provided to you on a regular basis.
Now that I’ve seen that you all can handle the basic fundamentals of picking a good trade setup, I have a new twist to add to your knowledge and skill as a trader that will make these weekly challenges even more fun and competitive amongst us.
As I continue to teach you a more skills as a trader with basic knowledge and strategies at all times. I think everyone is ready to learn how to trade the market downward as well as continue to trade it upward.
What I mean by this is using the two terms or “long” and “short” positions in your trade buys.
Long & Short Trades
“Long” positions are simply what type of way you’ve been trading all along. You buy at a price and sell at a profit when the price reaches your desired sell price target(s).
“Short” positions are simply the opposite. You would open your trade and immediately sell your coins at that price for cash balance and then buy the coin back again after the price drops to a certain level.
To be able to use this type of trading, you must be in the “Margin” or “Leverage” part of your trading exchange site.
More training on how to take full advantage of that market will be taught after I’ve been able to see that everyone has a very good basic understanding of how it works. This will be determined from what I see in the weekly challenge results in the weeks ahead.
The Basic Result Of A Short Trade
In the bear market times, “short” trading is where you can simply earn profits like this when the market is dropping. “BUT”…you must also complete two other steps to retain those profits earned.
- You would be buying the coin at the low price that has reached its point that you’ve targeted.
- You would payback the loan you took for using the funds to buy and sell that coin in the beginning.
The 5 Step Process Of A Short Trade
While this sounds a bit confusing. It is simple as this…
- Decide when you “think” the market might be dropping significantly and open your “short” trade order by borrowing funds against your balance to buy the coin you want to buy.
- After you open the short trade with the borrowed funds, quickly sell the coins you received from borrowing back to the USDT or USD market.
- Wait for the market to drop to the lower level target(s) that would earn your profits.
- Buy the coins back again at that lower price with the USD you have available.
- Payoff the loan you received in step 1 and the remaining funds is yours to keep.
The Weekly Challenge Using Long & Short Buys
So, now that I have explained “long” and “short” trading to you. It is a great thing to practice how this works using it in our weekly challenges.
Starting next week, I will open a new option in the buy window that is going to have “LONG” and “SHORT” to pick from.
If you select LONG, it would be always the same as you have been doing with a buy low and sell high mindset.
If you select SHORT, you will want your coin’s price to drop as low as possible to get the 10% profit level on the low price target from your buy price entry.
If you are a bit confused for how this will work best for you to understand it better. You might want to see how I make a trade using the “Short” buy. I plan to do that next week as an example to give everyone.
If you still have any questions about what you have read so far, please PM me.
Best of luck every week to everyone!!! 🙂 Take care always and God Bless us all…
