The sea of red
Hi I am @luueetang, I hope that you are doing well at the moment.
Img Src: Tradingview.com
I saw my own porfolio wiped out by 20 to 25%. I just kept calm and let it be. Let it ride out. I had some stuff to deal with when the meteor came and smashed onto my kindgom. It is like a battle and I lost a lot of men and suffered lots of casualties. It has however bottomed out and started to recover.
One more battle scar tattooed into my brain.
I think what usually happens when everything crashes are the following.
1. Strong Hands
Those who have strong hands hodl on and are unfazed due to experience. Strong hands buy from those who sold at a bottom. Goes shopping when dips occur and maybe Dollar Cost Averages. Doesn't panic. However, easier said than done. Imagine looking at your porfolio and it is dropping.
How to have strong hands?
- Take profits along the way because no one knows when the top finally comes, no one can predict the future. When you have taken profits, your only getting your profits reduced which isn't that bad if it doesn't turn out well. Always have a strategy and don't panic which is not easy especially seeing your porfolio shrinking in the matter of hours. Just remember that it won't go to zero that fast no matter what. What goes up must come down and what goes down must come up. Invert the chart when it's going down and you will see the peak which is where the top is in an invert manner.
I did not do anything when the crash came for the last couple of days, Just waited for it to crash. I have experienced this myself last month and I lost a couple of my total Ethereum. I had to buy higher. The characteristic of a bull market. I bought some ADA at a discount.
- What commonly happens.
Panic and anxiety fills the mind. Unable to sleep. I have been there. I am writing this from my experience. It is a pretty bad idea to go and read opinions that others may say especially at this point of time which a lot of people do. The fear that is inside us gets confirmed because we want to be right that selling is the right thing at bottoms. Then what normally happens is that, we will be thinking, how low can this go? Is it the end of the world? Then we sell, then the next moments of time or even a couple of hours later, it turns green.
Selling low and buying high. A trap that is hard to escape unless we can beat that mindset.
The graph above is what alot of people do including me in the past. In a bull market, is it hard to buy low and sell high.
What is my strategy?
I am no financial advisor and this is just my own opinion.
I have my Hodler position. Then my trading positions. I only touch the trading positions. So any crashes or sudden price spike, I won't be too worried about it. I guess we gotta be calm and treat all the dips as a catalyst for the next ride up. If prices keep going up, it is worrying at some point of time, it means that the bubble has grown super duper big. Crashes are healthy. However, definitely, we have to also be a bit wary when it crashes to a point where it breaks many major support. Then it is the best to take out at least the principal.
Posted Using LeoFinance Beta