Captain's strategy on the falling market
The market is transforming. That makes someone stronger and someone escapes and fixing losses.
Many of us made purchases on highs in December-January. And then, as it seemed to us, on the "falling" market in February-March 2018. For those who are still in the position, there are decent losses on many coins.
What to do?
There are opponents of averaging and supporters. But I support this idea.But averaging works only with free liquidity and fixing positions in equal parts.
What are the benefits?
Well, it is possible to go to zero or get a minimum profit with a much smaller market growth.
Why am I doing this?
Some math: a couple of epic falls from all-time high
If you have an 80% loss - it does not mean that 80% of the profit will return you back to the same level. In fact,to return the initial capital, you need to get a 500% profit (this is x5).
If the loss is 90%, then the profit should be 1000% (which is x10 from the current price).
So think when it is better to buy a new coin and capture the right moment when it falls. If the coin has fallen by 30% in price, average your investment portfolio with the same amount in fiat, this will allow you to come out with a profit with a less price growth in the future.
X profits to all!
Read my previous article: Are rats deserting a sinking ship?
My Telegram channel: Captain Hook Crypto Tales
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Yeah its tough for everyone who bought during the great fomo run. Averaging down does help a lot! A few coins I did fomo in on but i averaged down every swing low and now im in a not so bad spot as i once was :) Plus, i should've sold all the coins i bought before the great fomo but hey, greed is a powerful thing. Always take profit no matter how small i guess. Lesson learned :D
Are you more cautious with your money now? :)
I think so :)
2018 is a tough year for all hodlers.