Instead of panicking in such market corrections! | 10% To @tron-fan-club
This is not a technical analysis blog but my views on current market conditions.
For the last two years, people have been singing that the bull run will come anytime soon. And on asking, you come to know that the bull run comes in the crypto market almost every 4 years in which you can make money 100 and even 1000X. This starts with Bitcoin when it makes a new high in the first phase and then in the second phase, all the other altcoins get huge investments and some tokens increase more than 10000 times. And then you are given examples of some superstar tokens of the previous bull run.
Well, I am not saying that all this is wrong but all this cannot be completely correct either. Because this is not just about the crypto market, there will always be unpredictability in the financial markets.
Source
I still remember those principles of technical analysis, according to one of which we do price action analysis because we believe that history repeats itself. Now if you believe this one sentence as it is, then you will expect buying at every support and selling at every resistance, correct? But does this happen?
Obviously, this does not happen, so does this make this principle of technical analysis meaningless? Well, it does not. We believe that history will repeat itself but we also know that there is no guarantee that the repetition will be exactly the same because price reflects the mass psychology of market participants and that is why we study the price behaviour near those support and resistance levels.
Now understand this with the bull run, the 4-year cycle and the pattern according to which first Bitcoin tops and then other tokens, all this is predictable and what everyone thinks will happen in the market does not happen; that is why the financial market is called unpredictable and if you add the high volatility of crypto to this unpredictability, then it becomes like a double-edged sword, that is why the money is not invested in this market, the absence of which can affect your livelihood.
So the first lesson is to invest only as much as you can afford to lose. I am talking about losing investments, does not mean that this is gambling, gambling is when you jump into any token in FOMO without analysis. If you have invested after reading, analysing and understanding, then this is just like any other business.
The second important thing is that we know that the bull run will come but no one can tell when and especially how it will come. However, everything will be in flow because in the financial markets, an emotion called FOMO dominates the most. But since we do not know when and how it will start, first of all we have to stop being afraid of market declines. Because when fear dominates you, you will sell, and when everyone sells, only then the mass psychology will shift and big corrections like the ones seen recently will happen.
The crypto market is known for its volatility, but the entire financial market is also known for its unpredictability, and the most important thing market participants need to overcome it is patience. So Instead of panicking in such market corrections, look at them as opportunities. It is just a matter of changing your perspective and you will start seeing golden opportunities even in a falling market. And believe me, if you invest with the right plan, you may make good profits not only in this bull run but also before and after it.
10% beneficiary to Tron-fan-club
Upvoted! Thank you for supporting witness @jswit.
Hopefully bullrun will start soon. One such common in markets is if we analyze the past.
Exactly, But there is no guarantee that history will repeat exactly like the last time, so it is important to have a proper plan.