Wish you could dodge bad trades like bullets?
Better yet, don't you just wish you could stop bad trades in general?
Luckily for you --- I am on your side.
Yes, on the T-shirt. She makes Domo look good ;)
So before we get into the options and potential scenarios, let us analyze current market trends
In about 2 weeks, August 1st, The Bitcoin UASF shitstorm will have hit critical peak. It remains to be seen what exactly will happen. Either bitcoin will be one, or it will be two. Everything should "be okay", There is always that scare we call "Bitcoin Unlimited", but it is extremely unlikely they will pull off a successful coup. Let's keep them exactly as what they are.
An afterthought.
When the chain split rumors took main stage a couple months ago, and many popular exchanges expressed their stance on the matter, the price of BTC tumbled below a thousand. Granted that period of FUD was short lived, and over time, the average investor trading IQ has increased.
This time around the market is a lot more resilient to the pullback. Make no mistake, we are in a bear market, and "smart money" is exiting the scene. Experienced traders are riding the wave down.
A lot of traders are converting crypto directly into fiat.
My prediction is, the market will continue to head in a downward spiral---a lot of people will close positions. When the bleeding has hit critical peak, the market will retort in spurts, but expect true growth post August 1st.
If you truly believe in long positions you are vested in:
You weather the storm.
Keep your assets as is.
No need to panic and sell on the low.
Bear markets come and go.
You've seen this all before.
If you are vested in speculative investments:
These tokens have recently launched, and a product is months or years away
This company is doing the same thing as 5 other companies in their niche
Its more of a "concept", that reinvents an existing tech, and puts it on a blockchain.
(think of all the kickstarter modeled ICOs)
Main developer has quit and project is kind of in limbo or stalled
In these events, I would consider a partial or fractional liquidation. This could protect your investments in more ways than one.
It's always painful to sell on the low, but it's even more painful to watch something continually tank for days and weeks.
Personal Strategy
I decided to completely liquidate a sizable chunk of equity that I had vested in an Altcoin. I made the determination, that due to dwindling demand and ample supply, that the asset would continue to plummet and tank.
I was fortunate to liquidate my shares and leverage that equity into Giga-watt and Tezos ICO.
I felt like those two decisions, protected my investments immensely and will continue to multiply my money moving forward.
Now, when the opportunity presents itself, I will rebuy the same altcoin for a fraction of what I sold it at.
HODL that altcoin, for a couple of months, and when it begins to collect momentum and steam, I will slowly pullout my original investment. This way regardless of the future outcome, I have minimized downturn risk.
The beauty about trading and investing in crypto, is that it is a lot like art.
The right brush stroke at the right time, could making you simply a millionaire.
Knowing how to leverage your equity, and converting stagnant assets to maximize profitability is beautiful.
In the end, there are many roads and options to consider undertaking during a bear market.
However!
Never forget the golden rule!
Don't Panic
Follow or Burn after reading!