Well, over the past day or so, Bitcoin and most alt coins were getting hit pretty hard in the cryptocurrency world. The only trades I made were to sell some of my Ripple since it was spiking high, plus buy some more NEM (XEM) on the dip. Held the rest. Then early Friday morning, went bargain hunting and bought some DOGE (Doge Coin).
Was scanning some Facebook cryptocurrency groups and some people were acting scared and talking about selling some of their Bitcoin and alt coins. It seemed like a good time to go bargain hunting to me.
I once read a book by a multimillionaire named J. Paul Getty called "How To Become Rich" (close to the title if not the exact words). He talked about buying low and selling high. One passage discussed how he got pretty busy buying stocks during the Great Depression when the stock market had been demolished. He said that some folks said he must be crazy, buying these decimated stocks for cheap prices.
Of course, buy low and sell high seems like a no-brainer way to make money eventually. But it is an oversimplified adage they may need some further discourse. We should also factor in buying something that seems to have a reasonable chance of coming back eventually, depending on your subjective analysis, since none of us knows the future (if you do, congratulations, because the mainstream paradigm doesn't recognize that super power yet). Also, it does seem like some momentum plays for short term trading can be good...when a coin starts to get hot, buy some to ride the momentum and then sell some as it is spiking--this too, is not an exact science as we don't know for sure when the rise in price is going to falter. Sometimes a person can kick themselves if they sold a position that was up a good bit and then it goes even higher but it is generally prudent to take some profits in case the investment or trade starts to crash afterward. And generally you will often see a stock or coin drop some after a big run up.
I like to combine taking profits with some HODL in the cryptocurrency world. I bought Cardano, Nexus, Potcoin, ReddCoin, Verge, BitBean, Siacoin before they spiked recently...some in November, some within the past week. And I sold a chunk of each one of those when they skyrocketed. But I also kept some so I could HODL longer term. This strategy has helped me to grow my total cryptocurrency holdings exponentially...I use much of the profits to branch out into other coins and buy on dips some coins I already have. Plus, I sometimes convert to a little cash. Which can be nice.
Hope this article has been helpful. And I hope I stay level headed and follow my own advice and strategy and don't get swayed too much by either fear or greed.
