In the past weeks we all witness how the cryptocurrencies plummeted. News in different corners of social media arose, through that many people panic and tend to act in different manner.
What have you feel during this time, a bear market?
Mixed emotion?Full of uncertainty? Are you confused and develop the so called doubt. As we can observe the trend how cryptocurrencies fall down we all see the red color as if that this color will stay forever.
Are you afraid? Maybe you are? But for me if you invest in cryptocurrencies you need to prepare yourself in this kind of things. As an investor you need to understand that bear market is part of dynamic cycle in global market together with the bull market. Let's just compare this two phases in Day and Night. Bull Market is the Day and Bear Market is the Night. We cannot avoid this two phases so all you can do is to prepare yourself and teach yourself how to act accordingly.
In this article we will talk about the three common mistakes of people during bear market.
You are carried away by your emotions.
Unfortunately during bear market most of us are driven by fear. Fear of losing our money. Who wants to lose there own money? No one likes to lose money. So how can we prepare ourselves in bear market?
Before you invest:
Try to know the best options in investments you can ask your financial advisor for this.
The most important, invest only the money or the capital that you are afford to lose. If you invest in cryptocurrencies any possibilities can happen. For example your assets can be lost overnight its possible. That's why in the old saying "invest the money that you are afford to lose" you should also understand the risk in investing.
If you are not prepared for this, online investments is not for you.
Panic selling that results in selling all your assets.
Why do we always see the bear market as a bad season? What if I say that during bear market it is the best time to acquire more assets because you can buy your favorite crypto in a cheaper price. But as of now most of us was consumed by the so called "FEAR" fear of losing your assets
We need to overcome this kind of emotions and look on brighter side. Instead of panicking we need to stay calm, its a bad decision to sell all your assets in bear market. If you sell it their are lots of buyers who are willing to buy it.
Your bad T-D-M, timing, decisions and mindset.
Most of us experience to face a problem in money. Right? Our monthly bills, emergency and many more reasons. This reasons are one of the ten thousand excuses of most of us. If you invest in cryptocurrency, treat that as your savings where you are restricted to hold that. If you're reason is that you want to sell it for emergency you need to first observe the market? Its a bear market your timing is very bad. Its better to find better options to solve your problem in money than selling your assets.
Your bad decisions, if you lose in trading its your bad decisions how did you act what did you do, remember proper action reap a good harvest.
How about your mindset? During bear market to avoid being consumed by fear its better to avoid watching to much news or reading news about bear market. Aside from that avoid checking your wallets from time to time to check your balance. Convinced yourself and reflect your long term goal why you invest.
To end up, I want you to remember, bear market is a problem for all of us, even veteran investors can feel the so called fear and uncertainty. But the key factor or the true winner in trading is those person who can handle their selves accordingly. Don't make mistakes in bear market instead make it as an opportunity "sell your mistakes in bull market and buy your ambitions in bear market.
Disclaimer: The lead image I used is from Canva.