We all want it. Our portfolios would leap for joy if it happened.
As at writing this, the notifs from Sachs (aka “Jup guy”) just popped up: Make it keep going down.
As insane as it might sound, relax. It’s not inconsiderate or rage bait exactly. Instead, it highlights something or a principle that experienced traders like to point out for newer traders in the cycles: Dollar Cost Averaging or Compound investing.
Here’s the theory in working practice: As a trader or holder, buying at lower prices means more of the asset, right? Well true, but if you’ve been trading for a while, you’d notice something, you can never exactly tell where the bottom is, can you?
That said, we shared a few tips on how to check if some alts are currently considered oversold or overbought, and alongside that and the Fear and Greed Index, it might be good to use this well known investment strategy when it comes to picking out tokens in a bear market.
There’s always the issue of liquidity, but here we will plead the fifth and recourse to the help of this generational meme:
Seriously though, it goes without saying, to make decisions in a bear market where everyone’s panicking and no one knows exactly what’s happening in a sea of red charts, the best thing to do is apportion and calculate just how much you’re willing to believe on your play/hedge, and then budget it across a time frame.
That way, you either make some money off your initial entry, or you have some extra to bolster that position in the token you believe in when it does continue its downtrend slightly further up the timeline.
It’s not a fine science, but with practice and the help of some ChatGPT, you can, as a new trader, figure out a way that works roughly with your portfolio.
It won’t be magic and there will always be the need for patience as always in crypto.
Do you hear the crickets too? Friend?…
Well, we’re all waiting for the green but till then, we should remember to keep busy and productive, hone skills and keep searching for Alpha.
And on Alpha, here’s hoping we have juicy stuff for you tomorrow.
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