It’s A Trader’s Market
The market has clearly shifted in favor of the trader over the past few months. To be honest, it makes sense. Why would you not consider alternative measures when prices plummet. Trading does have that one very specific advantage over hodling and that’s being able to play both sides of the market. I have personally executed a number of short trades recently and have enjoyed the clarity it provides. Hodlers do tend to suffer from a bullish bias because it’s the only way they make money. They therefore continually deceive themselves into thinking that the price is always going up. Hodling is one of the best long-term, low-stress strategies but it does become limiting and even frustrating in a bear market.
Why Not Do Both
If you have trading knowledge it’s a no-brainer to get busy trading in a bear market. You can still have and maintain your hodl portfolio but how about allocating a few percent to a trading portfolio? Investors don’t need to risk their entire portfolios in order to trade. I personally trade with a fraction of my entire portfolio. In this way, I am not risking my portfolio but am simultaneously gaining additional exposure to gains outside of traditional growth. Scalping can be a very good strategy in a bear market as there are numerous bounces after severe corrective moves. However, you don’t want to hang around long in a position, as they often collapse unexpectedly. Then of course there is shorting, which is perhaps a better approach once a bear market has been confirmed.
Perfect For Times Of Stagnation
Even though there has been a fair amount of volatility there has been no advancement. This is typical bear market territory, up and down activity along a road headed south. There will be no real growth for some time, which makes trading the perfect fit. It’s not a bad time to buy long-term positions but I think that alts will still offer much better discounts. Looking at my own bottom prediction, it still has a way to go. It might not reach it, or it may actually exceed it. Bear markets have a way of testing the patience and resolve of investors. Many don’t last and simply capitulate, only to return when prices begin to rise again.
It is not only great to offset the floating losses of your portfolio but closing profitable trades is also an encouragement. This is especially true when many are experiencing loss. It’s great to know you are increasing your portfolio, even if it is only marginal at this stage of the game. Once the tide turns it will appear a lot more impressive. Bear markets are challenging for everyone and finding ways to better face that challenge should be on your to-do list.
Increasing Crypto income during a bear market is so important. Especially if that income stays in Crypto or goes into Crypto. Having freshly generated funds near the bottom is vital if you want to accumulate at bargain prices. You want your portfolio to regain its glory days but you also want something more than that! You want to acquire new holdings at the bottom that will be multiplied many times over once your initial portfolio reaches previous highs. This is not going to happen without having capital on the side. Passive income models are great for this, along with trading! Don’t focus on the pain, there is nothing you can do to change the direction of the market. Rather spend your energy and time in ways that will benefit you once the market begins to turn.
Stay strong, remain focused! This too shall pass, eventually!