Earlier today I started writing my post, then at some point all hell broke lose and I had to realize history is written at that certain moment and had to wait till the craze calms down to some extent, then update my post with the new data.
Today we, or better yet the crypto market made history. We're going to mention this day till we die, I'm sure of that.
Long story short, BTC hit $30,000 and with it alts had suffered as well. Stock markets have been affected too. Leverage traders most likely have been liquidated, again, and quite many crypto holder got hurt, again. I bet in the next 24 hours we'll see all kinds of explanations to what's happened.
Till then let's look at the facts, let's go back in time and look at the previous bull market corrections. This is a chart about the magnitude and duration of bull market corrections starting from 2015.
The chart was posted two days ago, before all hell broke lose, so the person who put together the chart left the last row open, he knew why.
The correction we had so far in 2021 is approximately 55%.
I knew there's a possibility for BTC to hit a lower low but no one knew how low that low it's going to be or how fast it's going to happen. Today I was lucky to watch the whole show live. Was sitting in front of my laptop, watching the red candle getting longer and longer. Was I worried? Not one bit. A couple of stop losses got triggered but was able to buy those back at a lower price and my positions were closed with profit as there were up to date, so no loss on my behalf.
Now what's done is done, we can't change what's happened, but we can change how we're going to behave during the next one, whenever that's going to occur.
While I was watching the market crash, was thinking of the golden rules that we should respect in order to protect ourselves.
1. Invest Only What You Can Afford to Lose - You should have seen some tweets today, saying I'm tempted to sell my car to buy BTC as this is a never returning opportunity. That may be true, but gambling with your money is not a wise thing. Markets can crash and you get rekt in a split second.
2. Don’t Invest Blindly
Oooooops!
Oooooops!
I was wondering how many Doge millionaires we have at the moment.
3. Diversify Your Portfolio - If you looked at the market today, not every pair took a hit like BTC. Look at ADA/ETH for example.
This pair also took a hit but wasn't affected as badly as the others. It is already recovered.
By the way, investing in SHIB and DOGE only is not diversifying.
4. Money Goes From The Impatient To The Patient! - Today you could clearly see this happening. In order for those long red candles to form, someone had to sell and it wasn't seep pocket whales for sure.
I could go on with the golden rules, but what's the point.
Today was a huge lesson for me, even though I'm not affected much. I'm going to write down what I could have done differently and use what I have learned in the future to make better decisions. Facing the music is the best you can do. Licking your wounds is permitted, however, don't waste too much time with it as it's not going to help you. Blaming others won't help either.
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