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LOOKING BACK & AHEAD
In the last few weeks the markets have been brutal to say the least. For those you came into this space during the peak and were shocked at the seemly great lost, well welcome to the roller coaster and sit tight. I once heard a financial advisor say of an asset going through a really bad loss, "it's not a loss until you sell" on the flip side too it's not a profit either until you sell That being said the waves seem to be changing and we can now see the light at the end of the tunnel.
In times like these it's important to form your entry and exit criteria. What exactly do I mean? In Software Testing, during our planning phrase we establish key factors or conditions that would be needed for Testing to commence. We also decide on the point at which Testing would stop. This last part is very important as it give to task scope and efficiency in using the resources. How exactly would you apply this to cryptocurrency? Let me show you.
ENTRY & EXIT STRATEGY
- Establish your objective for investing - long, short or medium term - Are you investing your kid's education or trading to pay your living expense or just to increase your wealth. Every reason is valid but you have to be true to yourself.
- Decide on the asset you want to acquire. This is usually based on what I perceive as long term growth of the project. An example: if your asset was #smartcash ask yourself do you want to earn #smartrewards or run #smartnodes if yes how many nodes or how much do you want to put in various address for the #smartrewards. Count the cost and plan to get there one step at a time
- Decide on the price you be comfortable to buy at. Analyze the price movement and pick a fair price you believe the asses is worth to you. Implied in this step is that you have an account on the exchanges where this asset in question trades. Please note you do not have to buy at market price you can place an order for the quantity you want at the price you want. The same goes for selling. Based on your inclination to risk and overall goal figure how often you would take profits. Even long term holders need to have a plan.
- Decide what price you would sell at. Now this is the part the if you handle correctly will keep you sane. What does this mean? to avoid the emotional turmoil of turbulent markets, decide what peak price you will sell at and sell only when it gets there. There would be some waiting involved from waiting for hours to months, and if you are holding longer maybe years. It is important to set this before the market activities start so you are not reacting emotionally but logically as you follow your previously laid out plan.
DO YOURSELF A FAVOUR CREATE YOUR ENTRY AND EXIT PLAN TODAY
LESSON LEARNT
During the Bitcoin fork I got some #BitcoinCash. One evening as I watched the prices go crazy I sold when #BCH got to about $1700 the first time. I bought some #LTC later moved to #ETC $16 (all this I did within the Exodus wallet) with the proceeds and planned to sell when even ETC got to $40. This happened not long ago and sold with the plan to buy ETC when it got back to $20. I was able to do this and was bothered by ETC getting below $20 after I bought because I had doubled my initial holdings and was able to use part to get some #smartcash for a complete #smartnode so I am all in profit. This is one case where it went right.
I have not always been so logical in my investments. Prior to that I had a case that when the exact opposite and the reason it went that way was because I did not follow the advice -"its not a loss until you sell" I sold, reacting to the market. You can guess what happened after I sold at a loss - yes you guessed right the market went up. One thing appears to be true whatever goes up will come down. Plan your buy-in price before it goes down and plan you sell price before it goes up. Decide if you will be buying more when it goes down again to increase your holdings, taking profits or cashing out complete into other asset. My asset of choice is precious metals other love real estate. I do not primarily because of the attention required. This is based on my research and please do not take this as financial /investment advice. Make your decision based on your risk tolerance and get a clear understanding of everything you invest in. I understand #smartcash and invest in based on that. To find out why I think #smartcash special and it's potential, read my previous articles and visit our social media groups.
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My Smart Address: SXYEPzkF9QBsKnyFQwJVdZwe5rJsL94Re9
PLEASE READ MY OTHER ARTICLES:
The Face of Kindness
New Hardware Wallets - Coming Soon
BarterDex - Trading with SmartCash
My SmartNodes Update - 60 Days
Kaspersky Lab Hardware Wallet - First Impressions
400 Followers Celebration Contest - SmartCash Giveaway
Reaching My Goals On Steemit - Weekly 250
When a Dip is not really a Dip
EOS Registration Deadline Approaches -Tips for Trezor Users
Anarchaforko First Time Experience - Notes from Acapulco
Smartcash RoadMap Updated
SmartCash Coming To A Shop Near You
SmartNodes - Stay the Course
It's Raining Smartcash
When the going Gets Tough
How to Invest in SmartCash part 1 -for Non Geeks
How to Invest in SmartCash part 2 - for Non Geeks
Introduce your Teens to smartCash
SmartCash Coin of the Future
