Topic: When the tide goes out - page 3. (Read 18520 times)

That word you quoted by Warren is mostly applicable to all endeavors of life without specifically mentioning crypto currency. This period of time admittedly is a trying time for the entire market which makes a lot of people stay away from the market at this point, only people who have the real conviction are still playing their part here. Even on the forum, a lot of people have stopped visiting because of the dull nature of activities but the year is just starting which brings so much hope and opportunity to reset which everyone should be ready to take advantage of.

My game plan for the last 6 months or so has been to get rid of the poor performing coins and trade them into bitcoin which has obviously a very good performance

We could also look at Ships who are seaworthy and are prepared ready
for the next tide

This would be "buy high, sell low".

Concerning traditional investments, a smart asset allocation would tell you to do the opposite.

However, as we are in this crazy cryptocurrency market, I don't think it would be wise to buy more of a coin that lost 90% of its value (as it may never recover)

I have a few coins that lost about 90% of their value... they are almost worthless now. I will not sell them... because they aren´t worth anymore.. but I will hold, and see if they recover at least a little so I can sell in the future...

Marrying an asset isn't a problem. As long as you're comfortable trading both long and short and you can use leverage to account for lacking volatility, you'll do fine.

The downfall of traders is when they marry a trade or forecast. A lot of traders get tunnel vision and refuse to admit when they're wrong. This leads to letting losses run and other emotional mistakes. Successful traders never get attached to trades. They exit when their stop losses are hit and react to changing market conditions.

As the famous Warren Buffett once ironically observed, you only find out who is swimming naked when the tide goes out. Now that the tide is gone, it's time to check what's left and pick it up

Many trading folks, me included, like quoting him, whether spot on or completely beside the point. But the talking crowd doesn't really care about the real insights and nuggets of wisdom this man shares, other than what is right at the surface. And there's always more to his words and sayings than the majority sees. In this post I'm going to show you what it means in practice and how to make use of it

In this particular case, for example, the market crash has shown which coins are going to kick the bucket and which have good chances to survive. But these are extreme cases, while there's a lot of space in between as well as room for action and improvement. Basically, falling prices let you clearly see what assets are performing better and which are not worth your time. Bear market is kind of an eye-opener for you and reality check for your investment decisions

And this is the whole thing. Bear market allows you not only to see where your investments are going but also lets you easily unwind them by selling poorly performing coins (if we talk about cryptos) and then proceed to buy more resilient coins at half the price as the market goes downhill. That's what most people overlook in bear markets and so fail to take advantage of. In a nutshell, it is a perfect time to change sails or even the ship itself, tide or no tide

It looks like you don't make a living off crypto

And more specifically, cryptotrading, since otherwise you would soon be broke. The first rule of a successful trader is not to marry an asset, however personally attractive it might look or feel. Well, maybe it's not the first rule actually, but it is the one which you should invariably follow with your skin being in the game

Indeed, learning a tidal market is more complicated, but wise decisions must be taken to reduce our losses. The waves are trying to get back up even though many waves hit and see situations that allow it to be thrown away.

right, those who are impatient make panic and affect the market. they think it's better to lose than the money runs out, and this is one of the reasons for the market to decline. but with the news of the ETF and the Bakkt I think it will improve the condition

By the way bitcoin still have value at the future, based on how many ICO are launch every time, bitcoin will be keep exist for long time. Always have higher price than other coin.

True believers are still here standing strong while the get rich quick people have left the boat.  A lot of people lack patience and they are ready to bail if they don't see quick gains.

It does look like ICOs are starting to die down and there seems to be a lot less activity on this forum as well.

If you go for checking out many boards across this forum, you can find most of people are suggesting about buying at dips but I'm not sure how many people are making use of those suggestions. I did few in last 4 months and now waiting for another dip to enter again. I'm not selling out any of garbage as I am still believing in to them to bounce back at any time. Also I have bought few major altcoins. Usually I am not believing in to most of altcoins  but this time I am finding this is an easy way to have more bitcoins for the same money, just as a part of making use of low tide

I guess there will be no need to change the direction of sailing nor the ship as I am still believing in to bitcoins moreover I am still in profit with my bitcoin stash (bought them by early 2015). Usually people do think about those "options of changes" only when they are frustrated due to losses

Bear market allows you not only to see where your investments are going but also lets you easily unwind them by selling poorly performing coins (if we talk about cryptos) and then proceed to buy more resilient coins at half the price as the market goes downhill. That's what most people overlook in bear markets and so fail to take advantage of.

In a nutshell, it is a perfect time to change sails or even the ship itself, tide or no tide

The economy is quite strong right now. GDP showed continued growth in 2018 and unemployment is quite low. While there are signs that growth may be close to peaking (in the sense of broad business cycles), I'd agree that people are too hasty to proclaim "bear market." There was arguably a lot of overspeculation in the stock market throughout 2017 and 2018, and now we're on the heels of a strong 10-year bull market. So it shouldn't be any surprise the markets have corrected down to 2017 levels.

but at least dirt coins will take casualties for those who are not yet good at analyzing. moreover the coin is from ico where many investors invest their funds. on the other hand there will be an evolution where only good coins will develop and still exist. so that there will be a positive competition

I would agree with that, it's an eye opener, I myself understands now that shit coins has no chance to grow in the bear market, these coins are profitable during the bull, so I keep them, I only knew they were shit coins when they fell hard and seems like no one is interested in trading them.

Going forward, I believe what the bearish market thought us is to be smart and be matured, we've seen our coins potential and in the long run, we will be able to make the right decision based on our experience.