Many experts often say that a correction in the crypto market is a good thing, basically the flip side of a rally, big or small.
Theoretically, even technically we are told, corrections adjust fair play prices to their concrete value or support levels. As a matter of fact, it’s much easier than that.
Prices go down because of speculator reactions to expectations of news, speculator reactions to actual news, and investor profit taking.
Here’s a list of ten things to follow during corrections of any enormousness:
1.Your current Asset Allocation should have been tuned in to your goals and objectives. Resist the impulse to decrease your Fair-play allocation for the reason that you anticipate a further fall in stock prices. That would be an effort to time the market, which is in most cases not possible. Proper Asset Allocation has actually nothing to do with market anticipations.
2. Have a look at the past. There has never been a correction that has not recognized to be a buying opportunity, so start collecting a diverse group of high quality projects as they move lower in price.
3. Don’t hoard that smart cash you amassed during the last rally, and don’t look back and get yourself distressed because you might buy some coins too soon. There are no crystal balls, and no place for retrospection in an investment Strategy.
4. Have a look at the future. Nope, you can’t tell when the rally will come and how long it will last. If you are investing in quality projects now you will be able to enjoy the rally even more than you did the last time as you take yet another round of profits.
5. If the correction continues, buy more bit by bit as opposed to more quickly, and establish new positions incompletely. Hope for a short and steep decline, but prepare for a long one.
6. Recognize new buying opportunities using a consistent set of rules, rally or correction. That way you will always understand which of the two you are dealing with in spite of what the market propaganda mill spits out.
Focus on value projects; it’s just easier, as well as being less risky, and better for your peace of mind. Just think where you would be today had you heeded this advice years ago.
7. Ask your advisor why your portfolio has not yet surpassed the levels it boasted five years ago. If it has, say cheers and continue with what you’ve been doing. This one is like golf, if you claim a better total than the actuality, you’ll in the end lose money.
This information is for Learning purposes only. We are indeed not financial mentors. It should not be considered legal or financial advice. You should consult with a financial advisor or other professional to find out what may be the finest for your individual needs and risk tolerance.
Please do your own research.