What to do when in Blood Bath
When we hear blood bath in crypto market, most people’s heart skip and they panic, especially when the blood bath last longer than they expects, and then they go to twitter, Facebook and other social handles asking, when moon, when lambo, when that/when this, these are all annoying and novice talks. With little research done, I found that more than 80% of those who panic are either newbies or people who do not really understand the crypto world.
Now the big questions have always been, what should I do when market is in red? Should I panic sell off, hodl, or buy more to average my price? Well in this article, I am going to give you all some tips that have been working for me.
Before I give you all the tip, one thing you must bear in mind is that RED days will always be there, it can’t be green all the way, that is why I love the market. The market gives you time to sell off if you want to and then rebuy at dips. with this said, let look at some great tips that can help us survive major dips.
NO PANICKING: What most people do is panic selling out of FUD and then FOMO buying. Well, if you have got money to lavish please send some to me here, because this attitude will take you nowhere. Don’t buy a coin because the price is going up and you don’t want to loss, “Stop chasing a Moving train” unless you are sure where its headed to. If you are not sure of its destination, then stay away, off-course you know too well that the market is highly unpredictable so my best options are always to stay away and wait for it.
Invest in Coins that offers value, usability and has good community: This is another great thing to do. This brings me to my topic, “what are you doing now that the market is in blood bath?” Well, this is a good time to go into research, and invest in coins with good promises and road map. Like myself, I see every blood bath period as an investing period and not selling period. I do more research in times like this, add some good coins to my favorites and then buy them as they dip. Believe me, weather you are in for the long, short or midterm, selling in dip is just not what you should be doing except you really need the cash for some emergencies. This is because the market will always go back up, and it may even go more than your expectations.
Accumulating/Averaging: Hmm, big secrete coming out here. What most traders tend to do in the sight of slight dip is use stop/loss. Well stop loss is good if you are setting it on the positive side and not the negative side. (Will talk more on this in my Next Post) But what if you bought the coin and it starts dipping, should you use stop loss or not? This is where I forego stop/loss and use the accumulating/averaging method: This simply means, you wait for the dip to me stable a bit and then buy some more piece of that coin. I will give an example
“Let’s say you bought STEEM earlier at 49k sat and since then, it has been on downward trend and now around 33k plus sat, it even hit 31k plus, you simply wait for it and then look for a good position to buy in some more, you could set your buy orders at 2-3 different buy zone, believe me 2 might be filled before another ride starts”. With this method, you will be quick to get out of the dip if you are planning on short term and in the end you will be happy with the profit you might be seeing.
In conclusion, as a crypto trader/investor, it is a good practice for you to seize every opportunity the market presents to you and use it for your own favour. If the market is in blood bath, go in, look for good projects, invest in and if the market goes green again, look for the weaker projects you think will not do well, exit at a good profit zone. This way, you keep the smiles all the time. Who doesn’t love crypto cash. I do, and I want to be smiling to my bank every time and I know you all do too. So feel free read through, trade save and enjoy the market.
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