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RE: 5 Steps To Make Massive Profits During Cryptocurrency Crashes
This looks like great pieces of advice in hindsight, but they are actually terrible. You will never know when the crash is going to stop and when the rise is going to happen. Buy periodically and then hold is the best strategy. Don't use warren buffet picture for your novice advices.
@raghup I agree, this is poor advice.
It sounds good at face value, but leads to selling when it's down, and buying after it goes back up!
Buy early, buy during growth of a product or industry, buy more when it's down if you believe, and always be looking for the next thing to invest in, early!
Don't get caught up in the drama, and put it away for a year or two, and see how you do!
I totally agree @raghup. Buy and hold is the strategy I follow when the market is down. I also buy even more of the altcoins that are down...it is like a Cyber Monday sale. LOL.
If you don't be patient you'll pay higher prices by buying periodically. Buying perodically is a FOMO act. I'd rather let them go as low as possible. You also have a risk of panicking and selling them again if you buy periodically. Will you really hold them if the crash goes for a week? Probably not.
I think your strategy is not sound during real crashes. It will be good for a one day small crash at it's best.
Buying periodically doesn't mean you buy on every crash and every day. You keep buying monthly or quarterly when you have money to invest irrespective of the current price. The FOMO comes when you want to buy on every crash.
Also you agreed that you never know how long the crash is gonna go for. What if it stops the moment you sold and start going up? You never know. You can never predict the market. Trying time the market is the worst thing one can do.
I thought you meant buying perodically during the crash. Because this article is about crashes. Most people who make money buy and hold. But the times of crashes can be another opportunity.
You should check out the buyer and seller bars very carefully. If red bars are way more and huge, you can know that the crash is not over. So if you do the research well there, you will make some extra profit. The more you are better analyzing charts, you can predict some stuff.
Search for "Quants". They run the Wall Street and they're mathematicians who see different stories in those charts.
I agree @raghup there are always going to be ups and downs so use it to your advantage and buy more when it is down, even if its not at the lowest price (that is assuming you believe in what you are buying into) then play the long game and actually be patient.