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The best tactics when market is falling are,
Buy When Everyone Else is Selling - The standard investing advice on Wall Street has always been to buy when everyone else is selling. Is this a strategy that you plan to follow?
If you do, at what point do you start buying and how aggressively?
One of the problems with this strategy is that you could buy-in after the market has fallen. So what happens if, over the next year the market falls another 30% from that level? You may not take as big of a hit as people who bought in at of the top, but you’ll be taking a large hit nonetheless.
The previous two market slides have shown that a drop of 50% or more is hardly out of the question.
Sell and Limit Your Risks - Another option is to start selling, so you free up your cash and can buy stocks later at bargain prices. This is an excellent strategy, but there is one serious flaw. At what point do you push the panic button and begin selling again?
Trying to sell into a declining market can be something like chasing a greased pig. A 10% or 20% decline in the market is hardly uncommon.
If you sell after the market has sold off, there is a huge risk that the market will turn up, locking in your losses and preventing you from participating in the recovery.
The basic limitation is that you can never know if a drop is a routine correction or the beginning of a protracted decline.
Hold and Stick to Your Game Plan - If a market decline turns out to be a correction — as most are — it’ll be easy enough to just ride it out until the market resumes it’s climb.
But during more serious declines, like the 1973-74, 1987, 2000-02, and 2007-09 markets, the ride down can be serious white-knuckle time. Those are the kind of markets that test even the most committed investor’s resolve.
Even though in each case the investors who held on well past the crashes were handsomely rewarded for their perseverance, it’s often difficult to accept that concept after stocks have fallen significantly and are continuing to do so. It can take nerves of steel, and not everyone has that.
Surviving Bear Country - A bear market refers to a market-wide decline in stock prices of at least 15-20% coupled with a pessimistic sentiment about the market. Clearly, these times are nothing to look forward to, but fighting back can be dangerous. Don't despair—there is hope! Here we will walk you through eight important investment strategies and mindsets to help you stay calm and play dead when the stock market takes a swipe at your returns.
Diversify - Having a percentage of your portfolio spread among stocks, bonds, cash and alternative assets is the core of diversification. How you slice up your portfolio depends on your risk tolerance, time horizon, goals, etc. Every investor's situation is different. A proper asset allocation strategy will allow you to avoid the potentially negative effects resulting from placing all your eggs in one basket.
Invest Only What You Can Afford to Lose - Investing is important, but so is eating and keeping a roof over your head. It's unwise to take short-term funds (i.e. money for the mortgage or groceries) and invest them in stocks. As a general rule, investors should not get involved in equities unless they have an investment horizon of at least five years, preferably longer, and they should never invest money that they can't afford to lose. Remember, bear markets, and even minor corrections, can be extremely destructive.
Consider Inverse ETFs - Inverse exchange-traded funds (ETFs) give investors a chance to profit from a decline in major indexes or benchmarks, such as the Nasdaq 100. When the major indexes go down, these funds go up, allowing you to profit while the rest of the market suffers.
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Well, cryptocurrencies are currently undergoing a massive adoption period. Whereas the previous bull run was largely based on speculation and perceived value, this bull run will largely be dependent on use cases. Cryptocurrencies as a whole are gaining media attention every day. CNBC recently had a "Fast Money Goes Crypto" episode, Forbes & Bloomberg have at least one article on Bitcoin a day, I recently saw an IBM Blockchain ad on national television, and Trump even banned purchases of Venezuela's shitcoin (although this may look bad if someone doesn't know what crypto is). People are becoming more aware of crypto as a part of everyday life, even if the initial Bitcoin hype-train has died down. Litecoin and several other cryptos have launched payment processors that make it much easier for merchants and retailers to accept cryptos as real methods of payment.
Moreover, given the additional attention that the United States' state and federal governments have paid to the market, crypto has gained legitimacy. A few states have now begun to accept tax payments in crypto, and the SEC has stated it would likely take a "regulate, don't hinder approach." Combined with the recent statements from the Congress' economic report on cryptos, the state of the market is overall bullish.
Finally, the largest exchange, Binance, is moving to Malta in an attempt to avoid excessive regulations from the HK government. They have also announced a MAJOR development with possible altcoin/USD fiat pairing in the near future. This is yet another bullish event for all of crypto.
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If we mirror this event of November 2013 to March 2017 over what the market is experiencing in 2018, you will get a classical perspective to this bear market. Yes, the market is definitely larger than it was 4–5 years ago, but the fundamentals remain the same. I don’t think the drop will be up to 90% (I think 70% is fair enough) but it could drop lower. One thing I am certain of is that this bear market is not ending anytime soon. If it took about 40 months to get back to the all time high in the previous bear market, it might take at least a quarter of that for this market to get back at the level we all cheered about. Personally, I have set my mind to January 2019. Not necessarily to see bitcoin at $20k, but to see the bulls take over fully. It could take longer, but this bear market shouldn’t last up to 20 months.
This is the time for the hype to die down and real information to gain more ground. There is blood on the streets, so it is definitely a good time to buy. However, it matters what you buy. I am definitely not selling any serious stakes in my crypto assets for now. And I can hold on for as long as I want. That is the real definition of ‘money you can afford to lose’. In the real sense of it, nobody has money they want to throw away. But if you have to sell in 6 months or less, you are not playing smart.
The key to winning in trading and investing is to buy low and sell high. If you can’t wait for forever, you will buy high and sell low. The last time it was 4 years, let’s hope it’s below 2 years (or much less) before $20k again. Just to keep in perspective, we are still 4 months in on this bear market. Brace up!
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Some people might think that Bitcoin is the only useful coin out there, simply because of how it’s dominating over 50% of the market.
But I would say this is not fair because of 3 reasons:
1. Bitcoin is the worlds first cryptocurrencies and therefore, it has the “first mover’s” advantage.
2. All/most altcoins/cryptocurrencies are addressing different problems and use cases that Bitcoin doesn’t aim to solve.
3. The crypto market is a decentralized free market where no one has autonomous power. Bitcoin could drastically fall in price in an instant.
Crypto-projects are evaluated by market sentiments and the use cases the project is intending to solve.
I’m also not denying the existence of scams, and pump and dumps, and MLM coins, but the market will eventually filter these coins out.
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The project team consists of highly qualified specialists. All participants of the project are able to reach fantastic heights!
From a large number of projects, this one is the best!Great idea, which perfectly realizes itself! Good luck!I believe there will be a stunning success!
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 Too many people are selling their crypto assets at loss due to the ongoing panic, not realizing that they only lose when they sell. No matter what the market is doing to your invested money right now, do not panic! So, the race is on and your coins will be ahead some day. You are not losing money. The market will recover. If you bought Steem 2 weeks ago for $2, hold it until its price goes back up and beyond $2. That's how life goes on. |
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For me, Big Governments Will Crush Bitcoin, But Won't Kill It
Big governments cannot tolerate Bitcoin, the digital currency that threatens to break their monopoly on printing money, and to manipulate the economy to accommodate the interests of powerful elites.
Sooner or later, they will crush it.
Once, Bitcoin was popular among the "innovators," tech savvy individuals enchanted by the process that created and distributed the exotic currency, and the promise Bitcoin held to solve the ills of a global economy dominated by big governments and powerful central banks. Like the problem of inflation, usually created by central banks to bail out heavily indebted companies and governments.
Bitcoin has soared from less than twenty dollars in 2012 to close to 4,500 last week. That’s more than a 22,400 percent gain. Recently launched Bitcoin Investment Trust Shares (GBTC) has fared even better, soaring 640 percent in less than twelve months.
Somewhere down the road, innovators were joined by "early adopters," enterprising individuals seeing big advantages in the exotic currency— a better hedge against global uncertainties than conventional hedges like gold; a convenient medium of payment worldwide; and a limited supply 21 million.
Soon, these two groups were joined by a couple of other groups. Like investors who saw cryptocurrencies as a safe haven against the ultra-accommodative policies of central bankers, and the rise of geopolitical tensions in Asia.
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Hello Gigtricks Team,
I want you to know that I've left signature campaign on Week 25 September 30 - October 6 2018. I am happy working with you guys especially to the mods and BM @cryptoguy and @guido thanks for accommodating us. I am still supporting you guys thank you again.
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This is a big tragedy for all newbie members of this forum. But it also have pros and cons. Pros of this having a clean forum and cons of this only for those active and chronic members have the ability to standout or to post anything they want that's ofcourse related to crypto.
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Discord Username: @Rainbloodz #7580
Telegram Username: @Rainbloodz
TAU Wallet Address: TTnbMvMtjyFSURgQXuPNDkVULsfbdHq3q9
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