Take the time to study
When prices fall, investors tend to keep a close eye on financial instruments, sometimes unnecessarily. However, this is a good opportunity to do some research. It is more interesting to spend time studying financial instruments and strategies adapted to the bear market. So you can make discoveries.
Also consider looking for the instruments that have weathered the market down the most. You could add them to your portfolio.
Finding 2-3 gems during a bear market can change your life
Don’t worry about liquidating your positions
Managing emotions in a bear market is difficult. According to some experts, this is the most difficult aspect even for professional traders. People who cannot control their emotions will not be able to profit from their investments.
Find out why prices have fallen, explore the reasons and find your own solutions. Consider whether your findings are relevant in light of market developments. Rethink your short and medium term strategy.
Diversify your portfolio
Invest in various crypto assets to diversify your portfolio.
There are over 18,000 cryptocurrencies already in existence. No one can say for sure which cryptocurrency will recover. It is also difficult to predict how long a bear market will last. In 2018, it lasted 1 year and 4 months.
In addition, investor strategies are especially suited to falling markets. This, in particular, DCA case.
If you are experiencing difficulties, you may need to reduce your position size, which will reduce your exposure to risk.
Be vigilant and consult your financial advisor before making any investment decision. Mirror-Mag cannot be held responsible for unsuccessful investments. Before using any third party service, you should do your own research.
Alm May has been a trader and analyst since 2013. He is an expert in stock markets, Forex and cryptocurrencies. He is the creator of Almvest.com and Imveste.com, two personal finance websites. He contributes to the development of feature articles on specialized websites such as Actions-boursieres.fr and also on the international Finixio.com network.