Last week saw some real volitality in the stock market. International tensions flared up, and prices collapsed. Analysts and TV pundits claimed it was a market correction. Or even a full-on collapse.
Luckily, this wasn’t the case.
But, in today’s article I want to share some lessons from this event. And, I’m going to show you several strategies for dealing with a market dip, be it BitCoin or stocks.
Here we go.
Make A Mindset Shift: View The Situation As A Discount Sale
Expert investors love seeing a market correction take place. Why? Because they view it as a “fire sale” on all their favorite stocks.
During the Great Recession of 2009, Warren Buffett and many others loaded up on quality assets.
They knew that the companies hadn’t changed, public confidence had.
As such, they scooped up as many assets as possible, waited for markets to turn around, and then watched as their discount purchases soared in value.
The same is possible with BitCoin.
Whenever the market tanks, there’s an easy opportunity for buying Crypto cheaply, then selling once the price recovers.
I’ve done this multiple times, and it’s a great system for making quick gains.
The next time Crypto is doomed, keep your ear to the ground and buy the dip. Then turn around and sell your assets once prices increase.
Only Invest In Assets You Trust
With stocks, I only buy trusted blue chips or index funds. These are some of the safest, most stable investments around. If they’re down, everything is down.
Same goes for Crypto.
In terms of stability, BitCoin is your best bet. It’s the household name and the asset everyone knows. Plus, it’s got the longest track-record out of any Crypto Currency.
Barring a few dividend paying alt coins, this is my primary asset.
And if you’re looking for a Crypto with longevity, BitCoin is your top option.
Be Patient
Some markets take months, or even years to fully recover. And in the meantime, patience is key.
There’s no shame in holding your Crypto, and many smart investors keep theirs long-term. If you have bought at a high price, and the markets haven’t recovered to this point, just wait.
Remember, you only lose money when you sell.
Closing Thoughts
With this week’s big stock market crash, I lost money early on. Values fell, and I was down over $100 in one afternoon.
At this point I could have panicked and listened to the media, selling my assets to avoid “the total crash.” But instead, I did the opposite. I viewed this as a sale, buying more blue chip stock.
And you know what happened the very next day? Everything recovered. Plus, my new assets generated a combined profit of $200.
So I actually profited off the fiasco.
The next time Crypto or stocks fall, use a similar strategy and capitalize off the discount prices.
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