I don’t think it is good idea to catch a falling knife. It never is. It will find its bottom like all asset classes do. Invest only when it stabilizes and on its way up. It’s ok to make slightly less profit then to try time the market and see your investment erode.
You are viewing a single comment's thread from:
Appreciate the comment. I would 100% agree with you if we were near all time highs and not already down well over 50-60% This is why I mentioned the market is in the final stages of a correction phase and with all this red beginning to see greater entry points (Clearly no one ever knows the bottom for sure and final stages does not mean the end. We have a rough technical idea, but I am an investor with a longer term look, not a trader so we aren't looking at it differently) and is a good place long term to ladder buys. That means investing in projects that meet the criteria at a price that is well below what people were happy to buy it weeks and months ago. You can get a percentage at different levels up or down from well over 60% on most coins down from its highs which statistically is a great entry point. That is also with the assumption of being invested long term and if none of the general business trends are cracked. I agree you shouldn't try to catch a falling knife, hence why laddering now like it worked well when we did it with Neo at $13, $15, $17 and $20 when it was falling like the market now. We also did that with Litecoin when it dropped from $100 to $33 buying in at $40, $37, $33 and then went to almost $400. I believe that worked out so far. So yes you can not time the market perfectly, but you can ladder in buys (So you don't feel bad with one big buy and seeing it go lower) at good entry points like now and profit significantly in the future by doing so rather than waiting to catch things leveling out as many already bounced 20% off the prices I got this morning. Bitcoin $7540, Ethereum $750 and Litecoin $103.50. I'm comfortable with those as solid long term entries. The good news is with ladders you can climb them to higher heights. Upvoted and followed as we build this Steem community! 2018 is going to be a great year even after a rocky start. (Like every year the past few years) Value always comes back to what it should be in the long term.
$100bn wiped out of the market from the time I wrote this comment. The problem is that no one knows what the true downside is. There is no relative value comparable, no P/E, P/S, P/B to analyze, just speculation. While you may believe in the project, there is no guarantee of commercial success. Reiterating Vitalik's comment that the market is hundreds of billion of dollars, but have we truly earned it? Most cryptos are still early start-ups and speculation is what has driven the price. It does not matter if you are a long term investor or a day trader, your resources will always be in fixed supply, meaning, if you have $3k in your bank account to invest and if you invest ratably in the market every time market falls 15% from the time of your investment, you would not have any money after a 45% decline, but guess what, market stabilizes at 70% level from the highs and it takes years to reach back because weak hands have burned themselves badly, and are now out of the market for good. People who have dollar cost averaged must now be kicking themselves, because there is an opportunity cost for each investment decision. Also note that, just because the crypto market has behaved in a certain way in the past (bounced back), there is no guarantee that it will behave the same again. Past performance is not indicative of future results. Be cautious my friend and invest wisely. There is lot of FUD out there, let the market find its support. Again, it is never a good idea to catch a falling knife. You think you know it all, but market may still amaze you in ways you may have never imagined! Don't fight the market :-)
Good point - agree with your view, laddering or not the question is with the market on this downward trend if you are already in do you sell or hold? That is a question I keep getting asked. Personally my position is currently to hold.