2 Strategies To Beat The Market When it Dips

in LeoFinance13 days ago

2 Strategies For Getting Rid Of Emotions In Crypto Investing.png

Apparently...There was a dip in the crypto markets over the past 24 hours.

I say apparently, because I would have never have known unless I checked out crypto Twitter and some posts on Noise.Cash this morning.

The pull back, the dip, whatever we call it these days took place and once again, like clockwork, people began to lose their minds!

Red in the streets, means time to sell for the weak hands.

Even though we've been through this cycle multiple times in the past few months alone, people seem to forget how much emotion is actually in the markets and common sense flies right out the window.

Let's do a quick overview of what I mean....

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Ooooh red....DANGER!

Everything is crashing and it's time to abandon ship!

Your emotions say, this isn't safe, I'm going lose, so I need to protect myself and get rid of my positions.

And now the flip side of it...

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Green! Safe!

Let's move forward!

It's only going up from here, so this is a good play and my EMOTIONS are telling me I can't lose.

So I buy more crypto when things are 'safe'.

And along comes Jongo who does things completely opposite to the 'norm'....

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To say I have no emotion in the game would be a lie. I'm VERY bullish on LEO, Hive and all the tokens within this eco-system!

But I have added a few things to my 'investing' that I believe serves me during these market dips...

Dollar cost averaging

I spend the same amount of fiat, every single week...Regardless of bear or bull markets. This is stupid simple investing 101, and while I'm not the sharpest tool in the shed...It's been working so far.

Multi-year plan

And here's the biggest reason why I believe I have no emotion at all when the markets go up and down. I'm only in year 3 of my 5 year plan of accumulating as much of this stuff as I can.

When the market actually dips, I get to accumulate more thanks to my dollar cost averaging. So when prices are in the green...I'm happy cause it's worth more. But when the markets are in the red, I'm still o.k. with it because I can accumulate more for cheap.

This goes against a lot of the technical analysis, day trading stuff most people are used to in crypto. I'm not trying to flip crypto for profits for at least the next 2 years...My mission is accumulation.

And getting back to the start of my day today...

I had NO IDEA we were even in a dip until I read the horror stories on social media.

I don't look at charts.

I don't have a Blockfolio account.

And Coingecko isn't bookmarked

Emotion isn't a determining factor in my day to day life in crypto.

I know some people will say you need to take profits...Sure, if that's your goal. But for me, I'm much more interested in what this stuff will represent for my family and I in the years to come.

So while this method and these 2 strategies might not be for everyone....For a guy that likes to dollar cost average and have a multi-year plan, it fits me perfectly!

How are you handling the dips?

Have you lost your mind yet ;)


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Emotions is you enemy.
But with every year your victories become more significant, if you push hard.

At least - I have noticed this in my past records

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That's a great point. I was just talking to my 'crypto savvy' Mom tonight about that. Was sharing with her how I'm only on year #3 of 5...And every year, it's been getting better and better.

Stay the course for me for sure!

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Yeah, not checking the price every other minute helps. I wrote this post yesterday on Warren Buffett's decision making process on when to sell a stock and it can basically be summed up as:

  1. Has the investment case changed?
  2. Are there better opportunities out there where the cash can be put to better use?

If neither has changed, then there's no need to sell. Keep calm.

Great points!

And such a good approach...Nothing has changed to make this stuff a 'bad investment' so....We win buy hodling lol

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That's very good suggestions .

I like the 1st option more than the 2nd one :)

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Thank you, amr008. Yeah, the second one might still lead to overtrading if one's not too careful.

I tend to use it more for deciding to move between asset classes like whether to sell an underperforming stock and put that money in crypto instead.

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I tend to use it more for deciding to move between asset classes like whether to sell an underperforming stock and put that money in crypto instead.

Oh okay right now I am concentrating only on Crypto ( since stocks is handled by my brother ) so I usually don't take anything out just to invest in other .

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Infact I believe that buying the dip is a good trading strategy,buy when the price is low and sell when the price is high,when you make use of that strategy it will help you to avoid any emotions that could make you start selling off during the dip because of panic....


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Yeah I'm never smart enough to figure out the best time to buy or sell...So DCA'ing for me, just makes it easy LOL

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Buy the bottom.

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Yeah, I dunno if we're going to the bottom lol But if we did, I'd load up!

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I just always buy at the bottom and sell at the top.

Spot on, as always! I currently have 100 day plans for things like cub and my wax games. Not proper culling the cubs until that 100 days is over (side ways trading is okay).

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Looks like a discount on CUB right now...I don't know why people would ever get out of that soon in any project like CUB.

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it's probably they see something like pancake going parabolic and they want that instead. I don't blame them. Cub has very little announcement activity compared to pancake who seem to be eating up everything in it's path.

Emotions can really ruin the game, albeit can't really be avoided. We hoomans after all. 🐈
Emotions be like, dang! I thought I bought cheap, now it's getting cheaper! Should have waited a bit more.
😂

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LOLOL SO true...I've had those questions and emotions in my mind constantly!

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One trick I learned when I see seas of red on my long-term holds is to close my broker down for the day. So yes the best thing is jut to filter out the noise and believe in your plan. So if its a long-term hold, just hold on for your life.

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I think this is why I'm so attracted to the dividend paying platforms and projects...We get paid, for holding.

I think that's brilliant.

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How am I handling the dip uh? I don't really know but it doesn't affect me much either. Yet I do have a blockfolio account that I'm watching everyday, but when it dips I find it fun and exciting (so it does affect me but in a funny way I guess?).
I think this is because I have done a lot of research on BTC, so I'm very confident about it. Also, as long as my total $ value is not below my overall investment, I won't panic.

And for my strategy, I DCA and I BTFD if I can.

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I had Blockfolio in 2017 and it was just ruining my life LOL Refreshing every hour...And then when things went south, I was depressed.

DCA and BTFD for me too!!!! lol

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the dips are just more meme opportunities for me, and maybe a chance to exchange some HBD for hive, that's about it. Spring is finally here where I live ( it's been very cold and rainy so far) and the markets can do whatever the flip they want. I don't care :P

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ha ha ha ah That's the best....Meme opportunities!

Great way to look at it!

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I don't look at charts.
I don't have a Blockfolio account.
And Coingecko isn't bookmarked

Same here . You made all the right points . I don't worry about the prices most of the time , if I believe in a project I will invest in it , if it dips - I will just buy more of it .

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Agreed. Just easier and less stressful. I haven't even noticed these dips cause I'm using the projects I'm invested in.

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I do take some profits for stablecoins along the way, and place them on Celsius. Apart from that, DCA is the way to go! I've done my fair share of dumb things in the past (thinking of it, I've probably done ALL dumb things there are to do) markets wise, but I tend to learn fast. ;)

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That's a good point. I'm all for taking profits...I think it's a good thing for those that have the game plan structured around it!

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I'm with you, it's so much less stressful dollar cost averaging in!

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Thanks man!

Yeah so much less stressful!!

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Thanks a lot Jon for making me realize the value of Dollar-Cost Averaging. I saw one of your #HiveGoals posts a few weeks ago that inspired me to follow the same path. I am also buying these tokens and stacking them on monthly basis. Don't care how the market looks like right now because I know they will be in a much better place in 3-5 years from now.

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It really works and the crazy thing is how quickly it starts to snowball...Especially in some of those projects on Hive Engine...The dividends are awesome!

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I love the Dividends tokens, putting my money in them makes a lot of sense. As you said, the snowball effect takes place and it all adds up.

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The dip ain't over yet, hold onto your scalp! lol

Exactly, checking price from time to time will only triggers FUD.

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Dollar cost averaging seems like a good idea to grab crypto.
I agree that we should not bring emotion in the trade. Nice

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So much my point of view! I even have longer term plans with crypto accumulating. But than again maybe we don´t even need that much time cause $leo and $cub take $hive to the moon?
Imagine cub at 10$ in 2-3 years. What does that do with leo and hive? Or what if it at 10$ at the end of the year? I don´t know because I am still going to compound.
I have a similar strategy with DCA but I buy monthly on a certain day. I might change it to weekly portions though. At least for the crypto side.

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Ahhhhh.........Emotions, our big enemies.:(

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@jongolsen , this is really good reading, thank you for these two strategies! I will keep it in mind.
I will make a post about it myself very soon. Do not miss out! Maybe I got you something :)

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As someone who cant really put more into it. I add to my crypto portfolio where i can and yeah im watching charts to build upon what little i had. I will relax when i have enough to relax for my boys to live comfortably with.

Yep, totally lost my mind, sold 95 percent of my BTC when it began to dip and my mortgage now 99.9 percent done. I may regret it when it goes to 500 k but man.. I enjoyed that bottle of wine to celebrate the end of the mortgage. Only leaving it open so we can use redraw for emergencies since interest rates silly low..

We are the same Warren Buffett built an empire on Dollar cost average. I am in year 1 of my 5 year plan 1st quarter and since adhering to the CTP way of doing business I have saved a lot of money, time, and effort.
Also this article is extremely helpful, thank you on behalf of all the Nubes like me :-)

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Not bad, DCA is a very good strategy, it has really worked for me, I am a financial analyst, but when it comes to trusting a good project, these strategies come in handy. Thanks for sharing.

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I do regularly check my blockfolio app, because I like to see my stake grow. I do try to be smart an exchange one crypto for another, but I don't move it into stable-coins or fiat.

I hodl for the most part, but when I see that one of my stakes has a good increase in price I sell a little bit and look for another project I believe in, that has gone down a bit.

Last year I sold some Leo for 2,3,4,5 Hive per Leo token, I am now buying those Leo tokens back for 0,9-1,4 Hive. As a result I have more Hive and more Leo now :)

Perhaps this is a simple rule for those who like to day-trade a little bit. Sell a small portion when prices go up, buy when prices go down.

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The best strategy is always to buy $100 of Bitcoin, Ethereum and BNB on every 10% dip.

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