Never Succumb To FOMO Or FUD
I'm firmly in the camp of those who believe in doing your research before a bull market and identifying projects you want to invest in and sticking to your plans.
Do not chase after coins on the move
First of all, by committing to that strategy you avoid having to get on board with a coin you see moving up fast. Chasing coins that everyone else seems to be chasing is a bad strategy because chances are that those coins have already been going up for some time when you discover them. It's best to buy into solid projects and just wait patiently for them to go up.
Patiently wait for your bags to gain in value
Secondly, in bull markets tend to lift all the boats. If you FOMO into one project from another, chances are the coins you sell will start going up after you sell them. A hot coin you have bought may enter a violent correction after you've bought it when the first crop of investors starts taking profits.
Avoid overtrading
Thirdly, swapping coins all the time makes for a complicated trade history with a lot of events and tracking to do. Calculating your taxes come tax season can be a nightmare if you're not using a really good piece cointracker/tax calculator. Many of them fail to account for swaps involving DeFi applications. By going back and forth between coins a lot can result in a painful and expensive accounting mess down the road. It's best to avoid that altogether.
Trade without emotion
Fourthly, do not let FUD or normal market corrections get under your skin. Study the history of past bull markets and listen to what modelers and analysts say and try and determine what the consensus of the best informed experts is. Each and every bull market is always followed by a bear market. Nothing goes up (or down) forever. That is basic market psychology.
Make plans and stick to them
Fifthly, make entry and exit strategies for each coin and stick to them. Try and find the market bottom and dollar cost average in. Figure out when the market is likely to top out and dollar cost average out. Don't beat yourself up for not achieving perfect results. Almost no one does and that is a mathematical certainty.
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I realized this not too long ago. Chasing a coin that's going up puts one at risk of buying the top and when there is a dip, there's a chance of it going below cost price.
There are plenty of things to buy into. Chasing rarely ends up well.
It comes from a place of panicking which is not a good investment position.
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Word. There are literally thousands of coins, some of which are of perfectly fine projects.
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The wisest thing to do would be to do research on potentially profitable coins and invest in them
That is very correct. The problem is finding those coins before most people do. This could be LeoFinance's killer feature. I found Thorchain(RUNE) thanks to Khaleel, the founder of LeoFinance, writing about it. I was able to get in at a very low price relative to where it is now.
I hope I'm able to find some coins at low price in the future too. So far what I have is what was recommended by others too
We have some tech and money savvy people on the lookout for good investments. I'm eternally grateful for the RUNE tip I got.
I'll be on the look out for their posts, I might get lucky some day
I agree, I'm glad I didn't lose so much before I learnt my lesson
Not following the trend, make and plan goals and following a strategy is the key here.
It something dipped after your purchase don't be afraid because it will bounce back (if you have invested after your research)
Exactly. Conviction is key. Don't invest in anything you don't have solid reasons to believe is a good project.
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Very valid points.
The hardest part about dealing with markets is controlling oneself. This is something that people have the toughest time with. It is likely why the majority are constantly losing money.
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If we only had Mr. Spock and his mind-melding technique to gives us perfect clarity - the FUD is unreal:
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