Topic: If you got emotional about the dip today, you need to manage risk better - page 2. (Read 249 times)
January 11, 2021, 09:12:39 AM
When I saw the candle last night I got info from my friend about saving USDT, but I still have a few coins to hold, it is not recommended to save 100% crypto because it is risky if it decreases
January 11, 2021, 09:07:40 AM
Dips and rallies is part of investing, it happens in every asset class except t-bills. If you got stressed out, you probably need to diversify your portfolio to appropriate allocations for your risk tolerance. A 100% cryptocurrency position is bad strategy, or no strategy at all.
Not everything will rise forever and that's why a dip has to happen which we've seen today. But after this dip, we'll see the next recovery. That's the usual thing that happens for bitcoin. And look with those mainstream media publishing that an expert says(U.K FCA) that crypto investors will lose a lot of money.Crypto investors ‘should be prepared to lose all their money,’ top UK regulator warns
Isn't it timely that these articles comes out when the dip comes?
The strategy of listening to the bad news makes other bitcoin holders initiate panic selling.
January 11, 2021, 09:04:44 AM
Dips and rallies is part of investing, it happens in every asset class except t-bills. If you got stressed out, you probably need to diversify your portfolio to appropriate allocations for your risk tolerance. A 100% cryptocurrency position is bad strategy, or no strategy at all.
We cannot avoid sometimes to get upset for the turn of events on bitcoin since many are so happy and thinking that it will reach to $50k but looks like there's a sudden turn happen. And for this we really need to learn the risk management since it can give us an evaluation on how to turn the market upset unto earning opportunity.
January 11, 2021, 08:47:05 AM
Dips and rallies is part of investing, it happens in every asset class except t-bills. If you got stressed out, you probably need to diversify your portfolio to appropriate allocations for your risk tolerance. A 100% cryptocurrency position is bad strategy, or no strategy at all.
This is why investment expert talks about investment philosophy and risk appetite of investors. To invest you need to determine your investment profile and also to have a portfolio that suit your profile.
To me, i have crypto and Start up equity in my newly developing portfolio. In the crypto asset i have, btc and Eth. i did this so that i will see what is working well and what is not working well. This will help me to minimize the risk of putting all my eggs in one basket too.
It was predictable. Once a round figure hits, the selling pressure increases and that happened once the price was touching 41k USD yesterday.
For the newbie investors out there who got FOMOed in buying at 35k USD levels, I would say wrong timing because if they did not sell at 40k USD and were drooling for more then they lost money today. This is the basis of a speculative market that is unregulated. You must sell at the profit and not expect for more when already there has been massive gains in the price, because a dip is incoming.Timing is what I would give a bigger importance to in the bitcoin market. Risk managing is cool but timing is everything here.
The speed at which the price dropped does not make it seem bulls can take over right now. Price will rise again but first it needs to stop dropping.
But this is a wrong argument to show that altcoins need to be bought. No, altcoins are not worth your money, unless you are advisor of that project, in which case you are going to be rich already. Altcoins will not let you sleep soundly at night because of the continuous cycle of fear and anxiety added to it the manipulation from the team.
For the newbie investors out there who got FOMOed in buying at 35k USD levels, I would say wrong timing because if they did not sell at 40k USD and were drooling for more then they lost money today. This is the basis of a speculative market that is unregulated. You must sell at the profit and not expect for more when already there has been massive gains in the price, because a dip is incoming.Timing is what I would give a bigger importance to in the bitcoin market. Risk managing is cool but timing is everything here.
The speed at which the price dropped does not make it seem bulls can take over right now. Price will rise again but first it needs to stop dropping.
But this is a wrong argument to show that altcoins need to be bought. No, altcoins are not worth your money, unless you are advisor of that project, in which case you are going to be rich already. Altcoins will not let you sleep soundly at night because of the continuous cycle of fear and anxiety added to it the manipulation from the team.
"Timing is everything" in crypto, that is more than a fact but a truism. Investing in crypto needs attention, and being current to the movement of the price, so as to know when to cash out.
you see, greed is always the problem. Some investors would have profited greatly at $40k, but they felt there will be a continuous rising probability and possibility. Well, if you cant hold then maximize your investment with attention to TIMING.
[moderator's note: consecutive posts merged]
January 11, 2021, 08:25:47 AM
Dips and rallies is part of investing, it happens in every asset class except t-bills. If you got stressed out, you probably need to diversify your portfolio to appropriate allocations for your risk tolerance. A 100% cryptocurrency position is bad strategy, or no strategy at all.
It is always better to have it in mind that there will be time for correction, even if you diversify as long as the assets is crypto the dip will also affect it, anyone who can not afford to accept the dip can strategize to sell while the market is full operation oe when the price is pumping, dip is part of the market, it helps the market to be healthy.
OP is probably referring to diversification not just within cryptocurrency but outside of it, with other assets apart from the ones which we can choose from in cryptocurrency. As OP pointed out, giving your 100% investment capacity to cryptocurrency alone is a bad strategy, if it is at all.
I agree with OP. If a dip in Bitcoin's price is depriving you of sleep then you have probably invested more in it than you should have. Perhaps you need more diversification to balance your investment portfolio.
January 11, 2021, 08:24:40 AM
It was predictable. Once a round figure hits, the selling pressure increases and that happened once the price was touching 41k USD yesterday.
For the newbie investors out there who got FOMOed in buying at 35k USD levels, I would say wrong timing because if they did not sell at 40k USD and were drooling for more then they lost money today. This is the basis of a speculative market that is unregulated. You must sell at the profit and not expect for more when already there has been massive gains in the price, because a dip is incoming.Timing is what I would give a bigger importance to in the bitcoin market. Risk managing is cool but timing is everything here.
The speed at which the price dropped does not make it seem bulls can take over right now. Price will rise again but first it needs to stop dropping.
But this is a wrong argument to show that altcoins need to be bought. No, altcoins are not worth your money, unless you are advisor of that project, in which case you are going to be rich already. Altcoins will not let you sleep soundly at night because of the continuous cycle of fear and anxiety added to it the manipulation from the team.
For the newbie investors out there who got FOMOed in buying at 35k USD levels, I would say wrong timing because if they did not sell at 40k USD and were drooling for more then they lost money today. This is the basis of a speculative market that is unregulated. You must sell at the profit and not expect for more when already there has been massive gains in the price, because a dip is incoming.Timing is what I would give a bigger importance to in the bitcoin market. Risk managing is cool but timing is everything here.
The speed at which the price dropped does not make it seem bulls can take over right now. Price will rise again but first it needs to stop dropping.
But this is a wrong argument to show that altcoins need to be bought. No, altcoins are not worth your money, unless you are advisor of that project, in which case you are going to be rich already. Altcoins will not let you sleep soundly at night because of the continuous cycle of fear and anxiety added to it the manipulation from the team.
January 11, 2021, 08:12:14 AM
Dips and rallies is part of investing, it happens in every asset class except t-bills. If you got stressed out, you probably need to diversify your portfolio to appropriate allocations for your risk tolerance. A 100% cryptocurrency position is bad strategy, or no strategy at all.
It is always better to have it in mind that there will be time for correction, even if you diversify as long as the assets is crypto the dip will also affect it, anyone who can not afford to accept the dip can strategize to sell while the market is full operation oe when the price is pumping, dip is part of the market, it helps the market to be healthy.
January 11, 2021, 07:33:22 AM
Dips and rallies is part of investing, it happens in every asset class except t-bills. If you got stressed out, you probably need to diversify your portfolio to appropriate allocations for your risk tolerance. A 100% cryptocurrency position is bad strategy, or no strategy at all.
Jump to: