Let’s talk about the recent slump in financial markets. Stocks, bonds, crypto…even Gold and other tangible assets are down and not just by a few points…
we’re talking -30% … -50% …some even more.
It’s a global mayhem and to a great extend it is due to the most recent pandemic crisis that is shaking the world (at least the majority of the countries if not all).
In these times of global turmoil one could expect to have an increase in the demand for cash and respectively: a decrease in the demand for investment instruments and it’s happening before our eyes as I’m writing this. It happened suddenly and to many of us, somewhat prematurely but as we are finding out, there were in fact few enlightened individuals who got the memo ahead of time. Reports are now surfacing about the highest number of resignations by major corporations CEOs (in the States) in the months of December 2019 and January 2020 – some 211 cases in January – an unprecedented number indeed. Coupled with a major sell-off of stocks by those in high government positions (we call this inside trading and it’s in fact illegal).
So yes, right now we are seeing the start of another decade-long (possibly) recession that many argue will be worse than the 2008 economy crash. With more and more businesses forced to shut operations all around the world, timeframes being stretched to new lengths with greater uncertainty, we can’t really expect anything else but a deepening crisis worldwide.
So what can you do?
First, don’t panic. The worst thing one can do is act in panic. This is how people are selling the bottom and capitulating while Big Money is taking advantage of their fear.
As the most experienced traders would say: Buy the fear. When there’s blood on the market, it’s a good time to get greedy. Which is what I am doing this time around.
You see, with the experience I gained over the years, I am done fearing. I used to sell when times get hard, last time we dropped to the 3K level in Bitcoin, I was looking for an exit point and the first glimpse of recovery was my exit straw. I sold at 4k with great relief that I didn’t sell the absolute bottom and was waiting for the complete collapse to the 1k level… only to be buying again a week later at the 5.5k level. The same thing will happen again. As the market goes lower and lower, many are panicking and start selling when the markets are at the lowest or near the bottom…only to find out that the much-anticipated bottom is not coming…it’s already been. Don’t make this mistake again and certainly do not capitulate right now. You can use some of your crypto holdings to play around and maybe catch a lower entry point if you know your way around the trading game but for those who are simply investing and looking to get the higher returns it makes no sense to be selling off near the bottom and risk missing the lower entry only to be buying back higher soon after.
In the longer term, I remain bullish on Bitcoin and most of the altcoins which are already at their lowest support levels, so for those who missed their previous opportunities to get in the crypto space, now is a good time.
Every recession has given rise to many a new millionaire, be it entrepreneurs, traders or investors and if we’re heading toward a new one, there will be opportunities once again. This is how I see it.
If you play your cards right, you can really be one of them. The main thing is DO NOT PANIC or else you will not see the opportunity, you will miss it due to fear.
I am ready to accumulate more crypto should we go any lower than this and I still keep all my positions I bought at the higher rates too – I will not sell at a loss. We still have the halving coming very soon and we still have a bull market ahead of us, so all you need right now is to patiently wait for the right moment and act upon it.
Switch off all emotions, this is the only way to make the right decision when trading or investing, especially when it comes to crypto investments – the most volatile of them all.
Keep safe and don’t forget to keep a distance for a while. This too shall pass.
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