Welcome to the first instalment of V’s Top 3s! Why top 3s? Because lets face it, nobody has time for a 42 step plan on building your Bitcoin. I blame Facebook and those insanely catchy Buzzfeed (or whatever they’re called) clickbait articles for giving us all the attention spans of apes before they’d even figured out they could use tools and evolve and junk. Disclaimer: these are my personal thoughts, not cast-iron methodologies for achieving goals. They work for me, but they may not work for you, so as always – DYOR and trade safe. So, lets begin!
Firstly – and most importantly – don’t trade everything! While there’s nothing quite like a full on Bull rush to make people FOMO into every trade on the board, not far behind is the raw fear associated with seeing your funds go down and down and down every single day in a nightmare spiral your wild imagination has you believe will end up with your trading account entering minus figures and you actually owing the Bitcoin bosses more money. Don’t worry, that won’t happen. But you will lose a lot more than you want if you FOMO trade everything that twitches in the hopes of regaining all your lost capital in one fell sweep.
Be patient, be calm, and remember that the market isn’t what you want it to be – and most importantly – the skills you need to win in this market aren’t necessarily the skills that you WANT to need. You don’t always have to make a series of endless correct decisions. sometimes you need to do nothing, and that’s a damned hard skill that you need to stop ignoring and start learning – because you actually want to win here.
Yep – the above doesn’t mean ignore all trading opportunities – it just means wait for the good ones. So one of the quickest ways of losing a lot of your funds is to HODL relentlessly because people have told you to have faith in your coin, or the market in general, or even in your own ability. Well, probably best not to have faith in any of those three things when it comes to trading. The only thing you need to have faith in is your strategy – and even then, if it doesn’t pan out, toss it to the ground and trial a better one. Remember, this game is about winning – it’s not just a character test.
So if you keep trading and look for the one or two good trades you may find a week, or even a month, then what you’re doing is you’re still utilising the strategy you had when you entered this game – and if you can win in a Bull market, you can still win in a Bear market. So the take home – it’s business as usual. It’s just that business is slower.
Bear markets are boring. If you’re following the above advice, you’ll be trading infrequently, and doing a lot of watching and waiting. The temptation is to create an extremely complex strategy both practically and mathematically. You’ll be using all the mental energy you’d usually be spending on your trades to instead write down reams and reams of endless nonsense about how if you trade 1% right a hundred times in a row then couple 10 different trading streams with a cross-stream leveraged system combining a 20% raise to each half stream in circumstances A and B but not C or D and make sure you only trade on a full moon and when you’ve turned a circle and ate some McChicken then and only then will the Magical Crypto Leprechaun will appear and grant you 3 wishes. But it’s probably better to keep… things… simple.
Focus on 1 or 2 coins, and trade them against themselves or against each other. Remember you don’t need to have massive gains, just a few percent here and there. You just need to avoid losing until the Bull market starts again. I’m a fan of larger and fewer stakes, as it’s my philosophy that if your strategy works, you can rarely if ever lose because of the size of your stake. It’s all a percentages game whatever you lose (within reason) and you have the potential to gain whatever you lose back faster with fewer stakes – so ultimately it’s simply easier for your mind to use fewer stakes, and therefore you’ll make better trading decisions. But each to their own, and I’m not recommending using a strategy you’re not comfortable with.
I AM suggesting however, to at least consider focusing on 1 or 2 coins to trade. Get to know them like the back of your hand, and then move to fiat or tether your funds while your coin dips, and buy back before a bounce. Sure, hard to do, but if you do move to fiat or tether and you buy back into, say, Bitcoin at a much lower price – even if it continues to drop, you’ve still gained more Bitcoin than you originally had – and as we’re mostly all banking on Bitcoin doing pretty darn well in the future, that’s a strategy that will *probably* net you a lot of returns long-term.
These are just my own strategies. They’ve worked pretty well for me – but they may not work for you, so as always – DYOR (Do Your Own Research).