I've noticed that many beginners in trading don't quite understand what experienced traders mean when they talk about the upside. Basically, it's just a fancy word to describe an asset's growth potential.



When I look at a chart and see an interesting entry point, the first thing I consider is the upside to the nearest resistance level. If the upside looks sufficiently attractive and risk management allows, then it becomes a candidate for the portfolio.

An example from practice: I look at some altcoin, see that it bounced off support, and there's at least 40-50% more to the next local high. That is the upside — the very thing that can turn into a multiple. Of course, if the market moves in the right direction.

In general, upside is not just a word; it's an indicator of how interesting a trade is. The greater the growth potential, the higher the upside, and the more tempting it is to open a position. That's the whole magic of trading — catching assets with good potential and exiting at the right moment.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin