WHEN THE MARKET DECLINES AFTER A STRONG INCREASE, WHAT SHOULD WE DO?

As a coin investor, you need to gradually get used to the situation of decreasing adjustments or unpredictable pump and dumps. Because simply, there is no wave that moves straight like an arrow forever without falling, or keeps its head up without jerking up even once (except for scam projects).

Ups and downs are normal, no asset increases in price forever and adjustments are necessary when the fleet has finished unloading, scarce supply will easily push prices higher.

Therefore, preparing your mind and scenario in advance for each time the market drops deeply, increases high or goes sideways can help you avoid panic leading to wrong decisions, thereby losing your position. good or an unnecessary loss of money.

Therefore, do not rush to blame a project when a deep adjustment occurs, because that is the nature of the market. You need to determine the following factors:

1. Trade or hold? If you trade, you must have a stop loss point and a closing target. To hold is to determine that you will not be able to avoid temporary losses, and need to determine where to buy more and what is the long-term closing point.

2. Odds for spot or futures

3. When shopping, you must understand the reason for buying:

- Why enter at this price?

- What is the Risk:Return ratio?

- Is my trade order in the same trend as the token price?

4. How does buying affect total capital? Is there a risk of burying capital and affecting my money for other things?

5. If you have to cut losses, what is the next thing to do? Continue trading or wait for the market to confirm the trend?

Once you clearly understand the above issues, your trading will be stable, because there are no longer psychological barriers of price fluctuations or fear of liquidation.

Again, market adjustment belongs to the nature of the financial game. Nothing increases in price forever and nothing decreases in price forever. If you keep asserting that you are always right, the market will knock you down and drain your pockets.