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Why Profit Booking Should Be used in Bear Market

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4 months ago

I have been in the situation of 2020 Crash for Stock Market and I was there in 2018 Crypto Crash too, now we are having something similar situation where the Crypto prices are crashing and we do not what is the bottom. People are waiting to buy for long term and people who have got good profits so that they can secure their profit. So that's why I was thinking that we should use the profit booking money to buy some coins in the bear market.

PC: Pixabay.com

I am not doing anything yet, I have profit booked when the Bitcoin was high, though not that much. So I have some liquid USDT so that I can use opportunities like this to buy some favourite coins. Now why Profit Booking is important because that profit can be used in the bear market so that you will get double profit, actual profit and another if the Bear market turns to bull market.

I am now seeing 100s of articles that Bitcoin is dead, dream run is over, that I am seeing from the last 4 years but again who were novices here are actually panic selling by seeing these articles. But we should be careful about what actually we are doing here, I am not entering the market for buying still because I see there will be more downside and once my target for certain coins are reached I will be entering.

That's the same thing I have done in the 2020 Stock market crash, where I have taken some profits in 2019 and then when the market crashed in 2020, I have bought the dip, not at the lowest but still bought at that point where I am profitable till now. So even if we are long term investors we should profit book once in a while so that once we get a situation like these, we can actually buy more and thus enjoy the profit.

Actually, profit booking rises one more question for individuals that when to buy and when to sell, that no one can predict. People have profit booked at $60K as well as $45K based on their profit-taking ability but still, people do have taken profit so there is no definite time when to sell similarly people are buying now as well as people are waiting to buy even lower so again there is no definite answer when to buy and when to sell. It all depends on people's own individuality that when they should buy or sell. Again we should not hope that everything will be good sooner or later, it's all the game which we are playing to get rich so don't ever think that there is an easy game for anyone.

But if you are a long term investor, I would suggest buying when there is a downtrend like this because Crypto is the future and a little down now can make you rich in the future.

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4 months ago
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