What goes up….. Inevitably plummets
As you can see in the image above this is an actual recovery of a second notable decline. The losses were even greater an hour ago. Presuming you hadn’t shorted anything.
There has been much talk lately by all kinds of bloggers, vloggers and news sources using the words “crash”, “bubble” and consecutively “burst” following the crazy surge of alt coin prices aswell as Bitcoin’s. Where we are not fearmongers (besides the extremely dramatic title), the current decline of the market is worth mentioning. For one, it’s a good lesson to follow up on some trading cliches. Whereas some may not apply to you, others may bring you fortune (mental fortune that is):
- “Never catch a falling knife.”
At the current decline, it’s hard to determine what rock bottom actually is. Even with the use of super cool tools such as Coinigy, there is no predicting the future. But if rock bottom becomes the new resistance, that could possibly maybe be a time to get in. Or not.
2. (Allegedly) a Warren Buffett quote:” Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
Pretty much speaks for itself. Be like Warren.
3. “It’s not different this time.”
This definitely isn’t the first time this has happened and it definitely won’t be the last.
4. “Accept that losses are part of the investment experience”
If you are the impulsive type and have found it hard to ignore the entire world screaming: “BUY NOW BEFORE IT’S TOO LATE, YOU WILL CRY LATER!!!!!!!!!!!”. Then despair not.
- This was a good lesson at not buying on impulse.
- You have learned emotions are not a good internal motivator concerning this or any financial market.
- You have learned it’s better to research cryptocurrencies, the companies behind them, prognoses of the future (of the tech) before you make an actual trade.
That’s as preachy as this will get. There are much more quotes, ideas and cliches. But these already offer some food for thought. And it is thought one needs, not the advice of an external contributor.
What instigated it:
A true answer would be “No one knows”. You never really know what will happen in this market, because if you did you wouldn’t be reading this but you would be drinking Daiquiris on your yacht, financed entirely by premeditated trades.
However, it could be:
- Some whale(s) selling of his (their) early day investment. Congratulations to you!
- All of the new enthusiasts panic selling their new investments.
I could go on. With many other possible scenarios. #POTUS #ASIA #FOREIGNPOLICIES. Perspectives are abundant. The truth lies in the eye of the holder. See what I did there?
The future is the future. All this means is that there is no saying what will happen. Time will tell. Hopefully, it will tell a positive story. Happy trading!
DISCLAIMER: The views and opinions expressed in this article are those of the authors and are for informational purposes only.