Old news- Buy the Dip

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Avatar for clarkie
2 years ago

Over the recent weeks there has been quite a bit of anxiety present in the markets. I myself have felt a bit of it too. However, in times like this when the market seems to fall for fun, I reassess why exactly I am invested in the first place. Often in times of panic there hasn't actually been a fundamental shift, just a psychological one. This is what I believe we are feeling today.

The job of an investor is to objectively assess an investment for it's true fundamental pros and cons, and not what the market believes them to be. In times of panic this can be incredibly hard to do, but control over emotion can lead to improved profits and state of mind.

The strategy that I believe is best to ensure that nothing is done under the influence of emotion is a checklist before buying and selling. Obviously this can only be done for people who hold coins for decent amount of times, but it introduces a sense of rationality to a sometimes emotionally driven event.

Secondly, you need to be aware of your emotional flaws and takes measures to not trade when they are likely to strike. While this might not be right for everyone, inaction can be the best action as it doesn't lead to trading fees and there isn't the increased stress caused from trading.

For those who have a vice-like grip over their emotions and are firm in their conviction, a dramatic dip is something that is celebrated. This can be you too, but it is going to take a lot of self-awareness and practice, but can be achieved by nearly everyone.

TL;DR: BUY THE DIP!!!!

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