Investing Without Stress: The Market Is Down But I’m Alive And Breathing…

I’d love to begin this article by asking how are you surviving this bear market? Are you on standby waiting for an entry? Are you out there catching knives or you are completely rekted? For me, I haven’t really traded for months now so I’m good tbh. The bear didn’t really shake me as it should. But one way or the other, I’m still feeling for anyone who the bear has affected.

Why wasn’t I affected?

Earlier this year, after I lost a huge sum of money trading what I ought not to trade, I decided to re-strategize my plan for trading/investments. I took a few weeks off the charts as I study this new path. Thankfully to that approach, the whole bear market this year missed me.

The plan

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Some years ago, I came across D.C.A plan across the internet while I was reading up articles on finance. I wondered how D.C.A works and I pledged to give it a try. For those who don’t know what it means, it’s an abbreviation for Dollar Cost Averaging, and according to nairametrics;

Dollar-cost averaging (DCA) is an investing strategy where an investor invests a total sum of money in small increments over a period of time as opposed to investing all at once.

I researched further then I realized it’s one of the best investment plans out there if well practiced.

Breaking the definition down with an example; Let’s assume you’ve got $100 to invest. D.C.A says that it’s best not to invest the whole $100 at once but divide it into portions. So, let’s invest the $100 within one month;

• $100/4(weeks) = $25 each week.
• The first week we buy BTC with $25
• The second week we buy $hive with $25
• The third week we buy $bnb with $25
• For the last week, we can repurchase Btc worth $25
  That’s all!

With this plan, we’ve successfully bought coins of our choices monthly regardless of the prices.
*Note: Instead of purchasing multiple coins, one could buy a particular coin for the whole month. Also, it’s not a must to budget your capital for a month. It could be every 3days, every 2weeks or months.

Investing using D.C.A has several benefits as it makes you invest without stress, no Fomo, and it tends to be a long-term investment, with less emotion on current prices.

However, D.C.A plan wasn’t that easy, at least for me. Each time I try to practice it, I end up not buying coins as planned or I end up unlocking the wallet. But for this reason, my this year’s D.C.A, I made sure to delete the account from my private wallet.

Imagine if I had this plan running for years now? I would have probably stacked lots of cryptos when BTC broke 10k,20k in 2020.

Conclusion

Sometimes, it’s always best to pull back and restrategize rather than try over and keep failing. This was what banged in my head before I paused from losing to finalize a strategy that work for me.

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