Did You Panic Sell or HODL During The Recent Market Correction?
The last few days has witnessed a lot of panic selling from noobs. I say this from observing a number of discussions on Facebook groups, some chats on Steemit.Chat, Telegram groups and whatsapp. The moment market starts correcting many with little to no experience in these matters start panicking.
This sort of behaviour is detrimental to the market because fresh money that gets pumped in also gets pumped out just as quick as people who are happy to digest a 100% overnight gain cannot deal with a 30% correction. $100 billion market correction seems like a lot but if history were to repeat itself we're bound to see far higher returns in the year to come and this too will be followed by massive corrections.
Markets don't move side ways and it's always up and down. If you want to enjoy the profits be ready to stomach the lows. There's no other way to go about investing in the world of high-risk and high-yield cryptocurrency markets.
People around you who are getting richer and richer trading or investing in cryptos are able to do that because they are able to diversify and book profits when they see 500% gains but are emotionally stable when they see a 50% correction.
Keep your emotions aside and do your due diligence. Don't simply go with recommendations or suggestions of anyone in order to make a quick buck. This market which may be controlled by whales at times will eat your investment before you know it if you decide to panic sell. This is the nature of the game if you want to play it, you've gotto understand how it works!
You don't profit unless you sell, but you certainly don't book a loss until you sell either!
So, tell me? Did you cut your losses and exit from a token/trade because someone told you or out of fear and uncertainty? Have you ever fallen into the hype of overnight profits in crypto only to buy at the top and sell at the bottom?
Remember, for anyone who profits in the market, there's someone selling at a loss!
Market corrections are always the best time to buy and if you plan on investing regularly, be sure to book your profits regularly too. On that note, did you buy some Steem at under $4 on the recent dip? :)
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the temptation to tinker a little bit with my portfolio was too much .. even as a hardened trader.. so i swapped a bit of btc for bch as it felt like there MAY be a run and btc was looking shakey.. then, the next day i flicked it back..
I also dumped a bit of BTS to ETH and flicked that back after two days.. made a small gain, which is always better than a loss.
I am learning to HODL, but sometimes it just seems crazy not to try to protect some of the gains... maybe one day! A Stress free life is more important than just making more gains!
You can sell a % of it, to protect you initial investment and then olookit back again one year later
Nope! Didn't get into this game to be a little B.
Glad you didn't sell friend, neither did I.
For those who did and want to regain those losses, BTS is set for a run to 14,000 satoshis (3.2x) over the next two weeks.
Check out what's going to happen, right here on Steemit.com
-The Beached Whale-
Editor in Chief - The Anderson Report
I had a mindset of Rules, before I decided to enter the market:
Rule #1: Do not invest, what you can not afford to lose.
Rule #2 Use your brain, do research on your own! Verify things and do not let Fomo or FUD kick in easily.
Rule #3: Hold on tight, even if there occurs massive market correction. You are in for the whole match, not for just five games or a set.
So, applying #3 also gives the answer to your question:
YES, I HODL : )
Hey betbuddha :) You have set a very mind blowing rules , I think if everyone follow these three rules gently then these market crashes won't make them feel down or confused. these rules really taught me a lot. I am greatfull to you .
I agree...
I agree with this.
As you mention, doing the due diligence is a must when investing in crypto currency as people can say a lot of different kind of things.
I personally think market correction is another way of just going with the market flow and also to re-invest to gain bigger.
Thank you for sharing this @firepower
Great post @firepower! I agree with everything you said. So many of my friends texted and called during the correction asking me if they should dump their positions. Meanwhile, I had taken some profits off the table on some positions that were 500%+ a couple days ago. When the market correction hit, I used these same funds to reinvest into coins at a beautiful discount (and to answer your question, yes, I got STEEM at $3.5!!!). Needless to say, I was laughing my way to the bank while people were having panic attacks about their investments. 🏦
My prediction: $12.50 STEEM on Jan 19th.
for me where price drop It's time to buy. But sadly for me i don't have that much money to invest. Or i would had made a big gain these last month. But asmy investment is very low even if i make 5 time more i'm really happy but its no big money.. Btu little by little i keep my gain and i hope in some time i could do this correctly
Good strategy is to even buy more and hold...panic sellers always lose...buy steem and power up as the future is very bright here (see my post for details) ...upped and more success.
I do however thing it's a good idea to re-evaluate your positions in a bear market. To question what you know and make sure what you are holding is actually something of value instead of just a bunch of hype.
Yep, there's plenty of time for recovery. When you see something drop big, as long as it isn't due to some news that could ruin the coin forever, people will be buying at the bottom of the dip. It usually takes a day or two because they want to make sure it's actually the bottom of the dip!
hodl hodl !
Biggest mistake investors make in any market is to trade on emotions.
People panic and sell when things are dropping, so they lock in a loss. Then they rush in for FOMO when things are up - and end up paying too much..
Buy low, sell high :)
You're right when you say biggest mistake people make is trading on emotions.
Gotta have a long-term game-plan / goal in mind and stick to it. Corrections are going to happen, need to learn to ride them out.
Yep. The only way you actually lose money during a crash is if you sell and lock in at that price. There's no reason to believe things won't recover at this point. Usually things will be flat for a bit before a real crash. People have to lose their optimism that there will be at recovery. Right now people are still too bullish so there are a lot of people willing to buy in at the bottom of a correction. As long as that's true, corrections will bounce back.
Right on @snubbermike, you will see how much I agree with this post last night...https://steemit.com/steem/@cryptkeeper17/see-those-prices-steem-hodlers-longs-buyers-time-to-be-excstatic. Well stated @snubbermike! UPVOTE
That's correct
I have done it several times and lost some money
https://steemit.com/contest/@manojm/contest-3-win-free-1-steem-by-defining-what-is-success
@firepower be sure to check this blog
It will be helpful for me
most people who are coming in are trying to make a quick buck so they will sell when they see a correction, it is part of the coin market to rise and fall
tip! ;)
A very well written post!
Not only did I HODL.....I dropped in to two more alt coins.