Uptrend- Haven't gone to the market yet and already run out of money
Big problem in uptrend If during a downtrend you always have a surplus of USDT for many reasons. Maybe you're waiting for a better price to buy, maybe you don't know the market much, maybe you're waiting for a project you like to list a new floor to buy,...
Then in the uptrend, the story is almost the opposite for everyone. we. I think at this point, this article is still new and not familiar enough to F0 guys, but anyone who has gone through 1 or 2 seasons will definitely realize this. Uptrend is here guys, we are at the base of a huge wave and lacking money to invest will be a feeling you may encounter during this period. In the uptrend, you see that every coin has potential, every coin can grow well, every coin you want to buy and so you will always lack stablecoins to buy coins. A sister came to my channel and shared a list of nearly 30 Altcoins that she held from last season and has been stuck until now. I'm not too surprised, but I suddenly realized that I should write an article soon to warn you about this issue. Is it dangerous to run out of capital during an uptrend? In my opinion, yes for all individual investors. When you run out of capital while you haven't bought enough or see too many good projects in front of you but can't invest. You will easily have the thought of selling one coin and jumping to another coin and that's when you lose money. What's worse is that you borrow to continue investing because you're infatuated with the market's crazy growth. This is the psychological trap that most people will fall into when they run out of money during an uptrend. That's why I always remind you to leave a portion of your capital, no matter how small, to do one of the following two things: Buy before any strong price fluctuations in the uptrend (I'm not talking about buying junk coins, memes,...). If there is a black swan like the previous cycle, the money you put aside will be very useful because you can collect coins at a price that can be considered the bottom of the uptrend. Invest in good, potential projects born in the uptrend. This is what explains the question: "What if the price doesn't drop sharply enough to buy?" Many people wonder about having so much money left over, but if the market goes up all the time, then there's no chance. to buy at low prices. So with about 20% USDT always in hand, you can invest in any good project or GameFi, any good NFTs born during the period of market excitement. This way you will avoid FOMO and can be proactive in every stage of the market. How to avoid running out of money before going to the market? Allocate capital before starting You should have a clear plan before rushing into buying any coin. For example, how much % for BTC and ETH, how much for Altcoin, how much to invest in new projects. In addition, you also need to clearly divide the amount of money to invest in each Altcoin you love. After that, just buy enough quantity to stop, avoid external factors affecting the investment decision from the beginning. One piece of advice for individual investors is not to buy more than 10 Altcoins in your portfolio. Too many will lead to chaos and often cannot be controlled well. Compliance and discipline After planning your investment carefully and methodically, stick to the original plan and avoid unnecessary changes. That means the plan can be flexible over time, you can still change a little to suit the market but not too much. It takes discipline to stick to that plan so you can get to the end of the cycle. Attractive markets, trend-driven cash flows as well as too noisy information will distract you and lead to changes in your daily plans. That will lead to failure in the market, even in an uptrend. Avoid indulging in DCA without a plan With my personal experience, DCA also needs a plan. I once encountered this problem when I was engrossed in DCA Ethereum regardless, leading to running out of capital in the previous cycle (I am the admin, not Tien Trong's story). So DCA also needs to have a suitable plan. According to personal experience, weekly or monthly DCA is more suitable for BTC and ETH. As for Altcoins, especially new Altcoins, you should DCA according to the price zone. If the price drops to the previously analyzed zone, then collect more. That's the way I personally find is always effective, everyone can refer to it.