Today's Vlog is about the importance of taking profits on your terms to guard against allowing your emotions to dictate your decisions on 'red days' like today.
Less than a month after the last big crash in Bitcoin, the markets are taking a hammering again today. My portfolio, like most people's is haemorrhaging in term of USD value.
In a nascent market like cryptocurrency it is natural to feel fear, uncertainty and doubt ('FUD') when the market is going down dramatically in price. Anyone that tells you for certain how this will all play out is either lying to you or lying to themselves or under-estimating disruption/ potential push-back cryptocurrencies will cause.
If you're a HODLer than what I'm about to say won't apply to you. However if you're someone, like me, who likes to hedge their bets and take profits occasionally then it's important (in my view) to do so strategically rather than emotionally. On days like today it is easy to make a decision (or not execute a strategy) based on emotion.
Cryptocurrency for me is about self-ownership and for me that extends to trading/ taking profits. I believe in doing it on my terms. I.e. setting out ahead of time, where I intend to take profit, where I intend to buy back in and ensuring that it is based on sound analysis or a sound strategy. So on days like today, the decision is less 'what am I going to do' but whether there is anything fundamentally different that should stop me from executing my plan.
I also saw today that Bitconnect appears to be ceasing it's operations. For me, this is just the nature of Multi-Level Marketing schemes. Pretty much all of them go belly up with a whole bunch of people who jumped on late losing out. I just hope that anyone who lost out was able to offset that with gains elsewhere or (if not) they only invested what they could afford to lose.
There is no sure thing in cryptocurrencies, no-one knows what the true valuation of this technology will be. However it's better to get involved in a protocol that you believe in. You're more likely to be steadfast during the downtimes and if cryptocurrencies are indeed over-valued at least you were involved in a technology that revolutionised people's lives.
Just my two cents worth.