Strategy: Surviving the dip.
It is not like that the Altcoins or Hive are experiencing continuous dip but even Bitcoin is going on a dip. The current dip scenario did not even spared the stock markets that are also going in a downtrend. Current prices is also one of the case where we are discovering the new dips and look like "buying the dip" if to be followed by another dip. I guess what can be the best strategy to survive the dip. Should we go all in putting everything in stake and wait patiently to recover afterwards or should we get out because it may further go down?
Actually, the best defense is for the situation is to get prepared for the situation beforehand. I guess if we have take care of few points that it might help in surviving the dip.
1. Do not forget to have the exit strategy.
The first thing should be having a clear exit strategy, when to get out of the position, This will help in booking the profits when market is high so if the market is go on downtrends, you have already booked the profits.
2. Have the regular investment.
As it is already suggested in my earlier post by codingdefined that buying the index fund at this moment is the best strategy. It is hard to predict that which stocks can gain value or not but with our experience we always know that "index" will definitely go up with time.
3. Don't FOMO and don't panic
In downtrend do not think it as this is the last dip and you have to go all in, do not borrow money for investing and keep investing money as per your previous plans. In the same way, do not panic by witnessing losses in the account. You worrying about the market will not cause the market to rise/fall so it is better to remain calm.
4. Preserve the capital.
This is most important thing that we should preserve the capital , if you understood that you have done the bad trade then book the loss and preserve the capital you have, instead of keeping your optimism high and lose everything.
So, I am not doing any changes to my strategy of accumulating every week and keep investing in the downtrend.
Posted Using INLEO
