Your strategy demonstrates a key lesson for both new and seasoned traders: discipline and careful observation often trump rushing for quick, large profits. Hereā€™s an expanded version of your approach, breaking down the essence of buying low and selling high:

### 1. Buy Low, Sell High ā€“ A Simple Yet Powerful Principle:

This is one of the oldest mantras in trading, but it holds true in almost every market. The challenge is that while the idea sounds simple, executing it requires discipline, patience, and a clear strategy. Hereā€™s a deeper dive:

- Buy Low: To truly "buy low," you need to become familiar with the natural price fluctuations of the asset you're trading. Instead of jumping into a trade just because you see a dip, spend time observing how the price behaves over days or even weeks. Learn to identify patterns, whether itā€™s a consistent range, a volatile swing, or key support levels that the asset typically doesn't break below. This way, you can set a realistic target buying price rather than impulsively buying when a slight drop occurs.

- Sell High: The biggest pitfall for many traders is greed. Once they've bought low, they often hold out for even higher returns, leading to missed opportunities or even losses when the market reverses. Setting a realistic selling target is crucial. Even if the price goes higher after you've sold, remind yourself that it's better to secure a reasonable profit than to chase bigger gains and risk losing it all.

- Setting Targets: To master this strategy, set clear buying and selling points before you enter the trade. Define your acceptable range for profit, and avoid adjusting those targets based on emotions or market hype. Also, have an exit strategy for when things donā€™t go as planned, such as a stop-loss to minimize losses.

### 2. Avoiding Emotional Decisions:

One of the biggest challenges for traders is keeping emotions out of the equation. Fear, greed, and overconfidence can all lead to irrational decisions that go against the logic of buying low and selling high. Stick to your plan, and donā€™t get swayed by short-term price fluctuations or market noise.

- Fear of Missing Out (FOMO): The market may show signs of breaking out above your set target, tempting you to hold longer than intended. Resist the urge to chase after unrealistic profits. The fear of missing out can lead to emotional decision-making, which often results in unnecessary losses.

- Overcoming Loss Aversion: On the other hand, traders may also hold onto losing trades for too long, hoping for a rebound. By setting a strict stop-loss, you protect yourself from turning a small loss into a large one.

### 3. Learning Through Observation:

A big part of successfully buying low and selling high is the ability to observe trends. Watch your selected asset or currency for an extended period and take note of patterns. This may involve:

- Daily Price Movement: Does the asset follow a daily rhythm where it dips and rises within predictable time frames?

- Market Sentiment: Pay attention to external factors like news, regulations, or announcements that could influence prices. Social sentiment often drives prices up or down beyond what is justified by fundamentals.

### 4. The Power of Small, Consistent Gains:

You donā€™t need to swing for the fences with every trade. A strategy based on small, consistent profits adds up over time. Large, risky trades can result in equally large losses, as you mentioned in your own experience. By sticking to a strategy of smaller trades with controlled risk, you reduce the chance of major losses and increase the likelihood of long-term success.

In summary, your approach of "buy low and sell high" works best when combined with patience, observation, and emotional discipline. Set clear targets, avoid greedy traps, and watch how the market behaves before jumping in. This way, even a beginner with minimal trading knowledge can build a solid foundation for profitability.

Looking forward to hearing the rest of your insights!