Starting trading crypto with a trading bot it’s like a combination of tricks, skills, and intuition. There are various methods used to accomplish an active trading strategy, each with appropriate market environments and risks inherent in the strategy.
Less-experienced traders can feel stressed and get confused because of the lots of new terms and meanings. Strategies and their specifications, setting up orders, activating (or not) different technical indicators and trading tools this is only a small part of the new words for young traders.
But before diving into the trading process you need to understand the important principle of how the bot works and executes the strategies. Now there are two strategies on Jet-Bot: Short and Long. You make your choice between these two strategies, depending on your interest: to sell or to buy coins with our bot.
The Difference Between Long and Short Trades.
What is a short position? A short position is used when you believe that the crypto market is going to be moving down. So it means, that you sell now when the market on a certain coin goes down, and you buy it later.
In fact, a short is often playing a temporary decrease to your advantage. In short positions, you sell now and buy later. So, it means that you open short positions when you believe that the market will be falling in value and you close it when you see that the market is going into recovery.
A long position is the opposite of the short: it means, that you buy a cryptocurrency when you believe that a certain coin is going to raise the price. When traders talking about the long position it’s like a synonymous with buying.
The best time to open a long position when you think that the market is on its bottom. While this is difficult to identify, traders can sometimes look for signs of recovery in the market and the market volume. Unlike a short position, you can hold long for a big period of time. There is a certain amount of traders that are choosing a long position.
So how to choose the best strategy for you?
When you choosing a long strategy you look positive about the future of the cryptocurrency prices. If you are shorting a position then you are pessimistic about the future of crypto assets.
Both of these trading strategies are useful, and you should learn when to use each one appropriately and you’ll see, that there is a time for both strategies, depending on the market situation.