4 Common Bear Market Mistakes to Avoid (PART 2)
The bear market will be a nightmare for investors new to the cryptocurrency market because of the sudden and sharp fluctuations. Without enough knowledge, investors can make mistakes. Here are 4 mistakes investors often make when the market is volatile.
Overtrading in bear market
This has a lot to do with mishandling emotions too. Overtrading is frequently the consequence of a few things – regret of misreading an investment thesis, missing out on an opportunity, the strong desire to recoup previous losses, and so forth.
The one thing all of the above have in common is that they prompt emotion based decision-making. Remember – the market doesn’t care for your emotions – the charts are nothing but a visual representation of information, and it’s up to you how you will interpret this information. In all cases, though, this is a process based on nothing but objectivity – one where emotions have no room to thrive.
There’s also the fact that you pay additional trading fees when jumping in and out of trades, and if you’re not managing this properly, they can add up pretty quickly.
Not Paying Attention to Mental Health
From all of the above, one thing should become crystal clear – your mental health is paramount. No amount of money is worth sacrificing your well-being. Now that cryptocurrencies have somewhat entered mainstream mediums of investment, it’s important to bring this up as more and more people get into trading and investing in crypto.
Pay attention to your mental health – do not neglect it. One of the more stress-free things you can do is invest for the long run if you have the conviction that cryptocurrency is here to stay. If you think that Bitcoin is digital gold and, as such, will replace traditional gold – why sweat over a 10% increase or decrease in its price now?
During bear markets, prices tend to go down to the extremes, and it’s commonplace for people to see their paper gains diminish. If that’s the case, don’t forget that there’s life outside of crypto – it surely stings to lose life-changing money but remember there’s no amount that’s worth your health.
These are some of the most common mistakes that people tend to make during a bear market. None of the above is financial advice. The purpose of this content is solely to entertain and educate. Investing in cryptocurrencies carries a high risk of capital loss. You can lose everything you invested. Therefore, never put in more money than you are willing to and can afford to lose.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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