Spoken like a man who is determined to see this through and not press the panic button. I finally took the plunge not too long ago and bought STEEM at $1.30 when it was still flirting with the $1.50 price point. I was trying to catch the little waves of 5%-8% gains, which was working for a minute until the market decided to make me a fool and say, “Oh no no no my friend, nothing comes this easy in life. This is the crypto world where patience and sanity are tested.” These past two weeks was my first ever taste of the painful Van Dam dim mak gut punch that rearranges the insides of your stomach into a jig saw puzzles.
This slump left me at a cross road thinking “do I place a stop loss and rebuy in at 92 cents hoping that this was the bottom and I would reap the benefits of it increasing back over the $1 mark? Or do i just holdr and wait patiently? Well, my votes are worth tiny little but more recently so you could guess my actions. I figured since I am in it for the long haul, why not have the ability to show my friends some penny love.
Now the question that you ponder in your post, “is now the time when STEEM resets for its do-over, or have we yet to see the true bottom?” My instinct is urging me to buy in but my skinny wallet is telling me otherwise. To be honest i’m not even sure what I want the STEEM price to do. If it drops lower, I will have to find a creative way so shift finances to long STEEM, but if it goes up, then I have missed my opportunity to buy in at 85 cents. What a conundrum.
I think I will do nothing tonight and regroup my thoughts and see how the market reacts tomorrow. A lot seems to take place when I am catching Zzzz lately, but hopefully tonight will be a quiet night.
I love the story Mello and its true of many so you are not alone! Like I said, I started at 1.75 and bought all the way down! So we are teammates in that too!
Its also good that you learned a good lesson about trading too... While sometimes things are easy, there is always a risk somewhere lurking... This one hit you quickly, but sometimes thats a favor that can save you much bucks later.
As for the buy at the bottom, you answered your own question... Your skinny wallet knows what he's talking about so listen... And do NOT HAVE FOMO (fear of missing out)... this is just one of hundreds of chances you will have to make a good decision. I have found that making good decisions is the way to make money over the long haul. (so listen to the wallet and build your dry powder, it will tell you when you are ready for the next investment!) ;)
And always get sleep, it helps to make good decisions for sure :D
Thanks Dave. That's sound advice from a sound financial planner. I will listen to my wallet and stay patient.
I have been mulling over this thought though. I understand the concept of average down, but if the price drops way below your entry point, wouldn't it make more sense to take a stop loss and buy in at the new low point? For example, entry point was $1.7 for STEEM and it dropped to $0.80. Would it make sense to sell and re-buy at $0.80 so you can reap the benefits of the $0.80-$1.70 range when prices increase instead of waiting until the price crosses $1.70 to being to see gains? The additional cost is the .005% trading fee. Is my thinking flawed?
well it would depend on where you placed your stop loss and assumes that you would buy back in cheaper. Many think they can do that, but really can't. So for instance, let's say you sold at $0.85 stop loss right now and said "I will buy back in at $0.80".... It is like your other trades, you might or might not get it right. If you do then you save a nickel, if you don't get it back at $0.80 because it doesn't go any lower than $0.85 then you will be out and forced to either 1) not get back in or 2) pay more to buy back when you realize that. Most people do number 1 when they use stop losses, so be very careful of letting the price dictate your investment thesis. The market is a pretty cruel animal and she can and will take the most people for their money. So the best thing is to always know your objectives, then from there you can plan a good strategy! :)
I am happy to answer other questions if you have them, I love helping people understand these things Mello!
Thanks Dave. I like that you said "so be very careful of letting the price dictate your investment thesis." I try to be very aware of this when i am unlucky to see a 10%-20% price drop unfold right before my eyes live and it's hard not to react. It all happens so quick too.
The market is a cruel animal, but the volatility is what i like about it, i think, haha. I can have different strategy for different coins, but mostly i try to keep in simple and manageable and stick with only coins that i really like to own.
That's definitely how to do it... Number 1 rule I tell everyone in the beginning is: Be comfortable with what you own. If you are not, the market will get you for sure!