What is a market crash when you don't take advantage of it? Well, I'll tell you; it is a lost wealth-creation opportunity. Crashes or declining asset prices is a necessary evil. It's both good and bad but how you react to it matters the most. The best time to accumulate is during the dips.
Also, when we say that opportunities are usually not dressed in ties and suits rather, they come in rags; we are referring to market crashes.
The fact still remains that no investor or trader wants the market to crash but this is where the opportunities lie. Nonetheless, markets will always crash and retracement will keep happening. What you do when they occur is the most important thing.
The Irony
We see some people selling more than they buy during the bear season. In my opinion, the time to buy more is during the bearish run because asset's price tend to become discounted.
On the other hand, it's not as though some people do not know what to do in the face of dips but the lack of liquidity has always been the problem. Market crashes are opportunities but when there's no liquidity for investing, market crashes become lost opportunities.
In solving this issue and in order to avoid not taking advantage of dumps, a special fund should be set up for this purpose. Not all funds should be invested. Keeping some free cash could come in very handy when market crashes. Also, taking of loans could serve as a liquidity option.
Using loaned funds to trade crypto isn't a very great idea but if loans are taken up strategically, it could be very instrumental in accumulating profits. One might ask why taking loans to invest in crypto is not advisable. Well, here's an attempt: the crypto market can't be predicted accurately because it's highly volatile and risky.
In other words, you can't tell the exact time you'll be in profits from the investments. Then, loans work with deadlines and interests. The more you delay to remit, the more interests accumulate. More debts can be accrued when you use borrowed funds to trade since, profits might not be realized before repayment dates.
Also, a person tends to be on pressure when he trades with borrowed funds. And where there is pressure, mistakes are bound to be made. Hence, it is always better to raise capital and use it in trading rather than borrowing to trade.
On the whole, it's important to always take advantage of market crashes. When a crash happens, it is not time to be fearful rather, it is an opportunity to make more money.