The Dip, The Emotion & The Volatility
The last week and a half has been rough on most people’s portfolios. The entire market took a large dip. If this is your first experience with this, congratulations on making it through and we hope that you did not sell during this time.
The cryptocurrency market is a volatile place. Because of the volatility it is important to be diversified and too have proper position sizing. Dips like this can, and obviously do happen. Remember that we are in this for the long term, this is just speed bump.
When the market starts to dip like this emotions can run high. Emotions can be your worst enemy when investing. It can be difficult, you do not want to make any decisions based off your emotions. Take a step back from everything and look again later. One of the worst things you can do is panic sell.
Volatility and emotions can not only work against you during a dip, but also when a coin is on the rise.
NEO is a long term recommendation of ours. Over the last week it went from around $80 to $160. At the $140 mark people started asking us if they should buy in. We recommended not too and wait for a pull back. But people still bought in at and above the $140 price.
When it got to $160 it started to pull back. During the next two days if fell from $160 to below $100. When it got below $100 we bought more.
A day after we made this purchase of NEO below $100, it is all the way back up to $150. We were able to get this return on our investment because we did not let emotions get in the way of our investing and we let the market volatility work in our favor.
Again remember that we are in this for the long term. Dips like this happen and over time you will not even remember most of them. Just keep emotions in check and to take a step back from it all if you need too.