Sell on GREEN and Buy When It's RED. Is That Always True?

“Green means sell, red means buy. And you will earn that bomb of profit!” Wait... Is that real?!

Whenever you see your trading chart, you will see a pool of candles colored with red and green scattered around the lines. Oftentimes you will be confused about whether to buy or sell.

Eventually, you will hear some so-called experts who will always advise you to buy when it’s red and sell when it’s green. 

But is that always true? 

The Answer is: EXTREMELY NOT. IT’S A TOTALLY WRONG METHOD TO IMPLEMENT! 

Because if it’s as easy as that, everyone will win and no one will suffer losses. Period. Yes, although we all love it like mad when we can win the market, but again, success never comes easy. It takes dedication, consistency, and of course, mindset.

If you are someone that tends to think green is buy and red is sell, CHANGE THAT MINDSET NOW. 

So let us rewind to the fundamentals of green and red candles first. 

WHAT ARE THESE SYMBOL IN A TRADING MARKET MEANS?

1. Green Candlestick: 

(Image Source: greciantiga.org)

Green candlestick indicates the opening price on that day was lower than the closing price ( i.e price moved up during that day).

2. Red Candlestick:

(Image Source: Definedge)

Red candlestick shows the opening price on that day was higher than the closing price (I.e market price moved down during that day). 

Each color conveys a different meaning depending on the market trends, and not all green or red is a good sign. Take a look at this sample: 

(Image Source: YouTube.com)

If you are a beginner trader, you might think red is a good sign for you to buy. In fact, that period isn’t a good time for you to buy because you are buying at the highest rate. Eventually, you will suffer losses just because it’s red.

This is what we called “Classic Buy Theory.” which means, buy during red, sell during green.

Meanwhile, take a look at this case as well:

(Image Source: Youtube.com)

In this scenario, you might want to buy during the low rates. However, you will never know how low their rates can be. The market is a bit tricky; when you think you are getting at the best rate but instead, you end up losing more because the trends are going down (this is sucks, is like the reality gives you the uno reverse card).

IN THAT CASE, HOW TRADERS CAN MAKE PROFITS WITH THE VOLATILE MARKETS? 

While the market can be very turbulent, it doesn’t mean traders can’t earn money. It’s pretty surprised on how the profession attracts a lot of interest from people who wish to earn more income from time to time. But one question that pops out in their head is: 

How do traders earn money? 

Traders make money with trading strategies to indicate when the market is likely going well or no and then place orders accordingly to get that move. Although it’s positive or negative swings, many traders take the use of a combination of short orders and buy orders to battle with the market.

There are various ways to analyze the market although it may seem complicated, traders should keep the analysis simple enough to identify good trading opportunities. Not everyone is comfortable in doing a certain analysis, therefore, it’s up to the individual trader to find out which one is more applicable for their trading style.

1. Technical Analysis: 

This means looking at patterns in price history to observe the time and pattern when to enter a trade or exit a trade. This is most widely used for a lot of traders out there as the trading market is the most liquid market. 

This analysis is known as the easiest analysis to observe the trends because it makes Forex trading simpler. They do not require historical price trends to determine their action. 

2. Fundamental Analysis:

Fundamental analysis is a method to determine real stock or fair market. Basically, this analysis contradicts technical analysis because it forecast the direction of the market through historical market data. 

If a fair market value is higher than the market price, the stock is deemed to be undervalued, and buy is recommended for their action. 

3. Sentimental Analysis: 

This analysis applies when investors use their overall attitude toward a particular market. They tend to measure profit from short-term price movements. Sentimental analysis is useful to those who like to trade in the opposite direction as well. For instance, when everyone is buying, they prefer to sell instead. 

It is always easy to explain than to operate. We can have a bunch of information regarding trading analysis applications but the market is a real-time performance whereby you can’t just rely on the theory itself. You have to practice more and more to familiar with your trading approach and the market performance as a whole. Hence, you have 2 choices here, whether to learn everything from scratch on your own, or seek industrial experts to help you out! 

DO I NEED AN EXPERT TO GUIDE ME WITH MY TRADING JOURNEY? WHY?

Getting your first trade market will be very challenging than it looks at a first glance. In fact, 80% of beginner traders tend to fail because of zero-knowledge to start and proper guidance to sustain their passion. Eventually, they will give up easily and turn to safer hobbies to do. 

Success in trading is not easy however it doesn’t mean you can’t be successful. Yes, you can learn trading by yourself if you are patient and understand that it will take a lot of your time. However, if you are someone who likes to fast track their success will find that investing in a good trading course or expert will pay a bunch more in the long run. Technically, you won’t have to face irrelevant mistakes because the trading experts will be there to minimize the possible mistakes based on their previous experience. 

Yes, we all know that there are so many gurus trying to upsell their products or services and end up not getting what they truly want. Hence, it’s important to do intensive research about their company background as well as request free consultation or webinar session to understand the company better. This method will be very beneficial for you because you won’t have to spend any penny until you decide to proceed yet you’ve learned something new from the session. 

In that case, you have nothing to lose!

So are you ready to make changes in your income? 

SCHEDULE A FREE CONSULTATION WITH US TODAY!  

Let us help you make a more well-prepared decision with your investment!