It's not good for mental health to check the portfolio so many times in a day. If you check your portfolio many times while the market is down, you panic and sell early. I am talking about newbie traders here like me. I also panic a lot during the market crash, and I don't feel like I should hold my coins for long.
And early sellers miss the chance to make a profit when the market is bullish again. Instead of you, giant whales make money because that's what they want. They want you to sell your holdings early or at a loss.
Honestly speaking, I'm not an experienced trader. I feel depressed, drowning, demotivated while I see my equity is half of my investment, or less than half. But in the crypto market, you don't lose money until you sell.
So, I am writing here about coping with the bear market and how to stay calm when things are not going towards your prediction.
I already shared one of my strategies before. I always invest 70% of my budget in the market and keep the rest 30% to buy later when the market is down. I don't use that 30% when the market is green.
MY theory is simple like others - Buy the low, sell the high.
You've to keep in mind that disaster can come anytime. You have to be ready for that. You have to earn from the crash too.
Now the question is how to understand the dip? Honestly, I don't have any logical answer because I am not good at technical analysis. Here what I do -
Suppose I had $1000 to invest in Bitcoin. I invested $700 at a 50k price. Now suddenly crypto market crashed due to fake news or coordinated attack. Most of the panic sellers are selling their holdings. I didn't panic and bought $100 worth BTC again at a 42k price.
Then the market again crashed because of another FUD news. More panic sellers are selling than before. But I bought again $100 worth of BTC at 37k.
Now some analysts are saying that BTC price can go to $25,000. And I am reserving my last $100 for the worst scenario. And if the market goes to 50k again from 25k price, which was my first entry, I will make a good amount of money.
Well, that's my strategy to buy from the dip. When panic people are selling, I keep a reserve fund for buying more.
I just gave you an example. You don't have to follow that. The point is to make your own strategy for the upcoming disaster so that you can minimize the damage and bring out a profit even from the worst market situation.
Don't make trading your only way of earning money. I believe most of you are business people or jobholders. When the market is in a wrong position, just leave the trading, set a targeted sell limit, forget about it for a certain time, and do other works.
That's what I do after implementing the strategy that I told you here. There's no point in being panicked. You can't do anything about it, as the market situation isn't on your hand. So better set a parameter for your holdings and take a break for a specific time. It could be a week or a month. Then, after a month, recheck your portfolio.
Honestly, I made more money when I wasn't tensed about my holdings. And I started losing when I began checking my portfolio a hundred times a day. That's the bad habit of newbie traders.
Gossip with friends, pass the time with family, watch movies, travel... I mean, forget about your trading. Mental happiness means a lot.
95% of traders aren't in a good position in the crypto market in the current situation. So instead of panicking, use the time to earn from other sources. You can see I am still making crypto in these market conditions. Obviously not from trading. Trading isn't the only way to earn crypto, and you already know that. Right?
Look, I am earning some Hive and Leo coins by writing in Leofinance and Hive. There are some other ways to earn crypto, like searching on Presearch, Browsing on BAT browser, Playing games on Splinterlands, etc.
And, besides earning crypto, maybe you have a regular job or business outside the crypto world. Focus on that to earn more from your career or business.
The motto is money should be coming from anyway. Don't ever stop earning money. This motivation may help you to forget your lousy portfolio in crypto trading.
And always remember - What goes up comes down, and what comes down goes up. You should wait for a better time instead of panicking.
