It’s A Forced Sacrifice
Unless you moved into stablecoins and took profits in 2021 you have no choice but to absorb the pain of this current market. However, once again, investors need to find the “silver lining”. You have no choice but to endure this bear market so you might as well leverage it as best as you can to benefit yourself in other ways. From what I have seen in past bear markets, many choose a rather foolish approach, in my opinion. Many investors tend to suffer from a “deer in the headlights” dynamic. They simply do nothing! They are frozen by fear and are unable to make a move. Their reasoning is that they will simply hold out and then sell once the market eventually recovers. Instead of making use of a great opportunity, they think only of escaping their current loss.
What A Waste
If you are prepared to wait it out, it indicates that you believe that the market will recover. If that is true, why would you not scoop the bottom? By doing this you would be turning a painful situation into an extremely profitable one. Passing up on this approach is nothing short of a wasted opportunity in my opinion. At which point you begin to start accumulating is up to you. Some believe that I am perhaps a bit bearish on my targets but there is a much stronger motivation backing this than even the charts and technical analysis.
A Game Of Odds
Remaining in the game should always be your number one priority. Despite the fact that I foresee prices heading lower in the medium term, I have to protect my capital. Let’s consider each scenario then. Buying at these levels now will not be the best move if prices move a lot lower than many expect. Holding out provides the best outcome from a position of odds. If it crashes lower I am able to move in. On the other hand, if it bottoms, I merely miss out on the first leg of what is likely to be a lengthy journey north. You have to devise an approach that keeps you in the game. People’s strategies are often one-dimensional, they have not considered what happens if the outcome is contrary to their expectations. This is why despite being bullish in 2021, I moved approximately 40% into stablecoins. I also proceeded to sell off ETH above $4K and $3K over a period of many months.
It’s Not Counterintuitive
Some may think my approach is counterintuitive in relation to what I have previously mentioned in regards to wasting an opportunity. No, it’s not, I am either going to be buying a bottom or buying into a reversal. I am merely choosing the best approach for either outcome while simultaneously taking advantage of a great opportunity. You always need to ask yourself one very important question when testing the efficiency of your thesis. You need to play devil’s advocate by asking yourself, what if I am wrong? I remain on the side of facts and stats but I also make provision for unexpected reactions from the market. The craziest bullish scenario could suddenly play out for Crypto, or the most catastrophic event could unfold. Does your strategic approach incorporate both scenarios?