What Are Some Of The Things You Do During Bearish Situations?
Every crypto owner has the habit of checking the changes in the dollar value of their holdings, especially when it is spread to different portfolios. When it's in a bullish situation, there's a certainty for an increase, but the joy only comes when the increase in dollar or the percentage change is even higher than you'd expected.
Infact there's a different feeling to this. Whether it's the bear or bull market, everyone checks their holding, per minute, per hour, or day, the excitement that happens determines how people make their financial choices.
The feeling of getting richer by the day brings extra usefulness or validity to one's spending culture. Nevertheless, whether one's portfolio is going up or going down, it always influences an irrational choice or decisions, depending on the emotion that's triggered by this "loss" or "moon"
The Constant Sad Stories
When it comes to bearish situations, it's an entirely different story with similar experiences. People are quick to bemoan their loss with the effect of what they think they should've done. For example, when steem went from $8 to about 20 cents people with constant sad stories were flooding their blogs with regret stories.
They tend to curse their inactions especially when their bags rose to unimaginable figures and they didn't withdraw everything. It wasn't as if withdrawing everything was the right thing to do in that context, the reason why they feel they should take everything was that they can't believe they were very rich some months ago and now they've lost all that money.
People sulk, throw tantrums and begin to rethink each of their actions when their bag is going down. Especially if they kept the faith only to have their bag dip even further, they didn't believe it could be 50/50, this is the reason why predicting or reading the market as a result of previous cycles can go wrong.
Panic & The Feeling Of Inaction
The feeling of inaction is the mother of regret, this is why panic is what other people do. Now, no one is immune to panic, especially when they're dependent on crypto to run their lives. Panic happens in a bid to ensure safety. Because of the volatility of crypto, there's this need to guarantee some atom of safety and this is why stablecoins exist in the first place.
It's easier to be calmer with the changes to one's portfolio and some of the ways to establish this safety is by having stable assets. Now panic arises mostly from the fear of loss, (not that this is the only crypto situation that causes panic) especially when one is trying to cut their losses in order not to incur more loss.
So panic makes people choose half bread, rather than lose the whole loaf, it's a risk management mentality held by many crypto owners. While this isn't bad, it's a panic-based mentality that is surprisingly helpful in precarious situations.
Selling To Ascertain Safety
The effect of panic results in panic selling. Now, panic selling is caused by irrational decisions, but the goal is to stay safe while mitigating or reducing the degree of loss to a bearable extent. While panic-selling feels putrid on the surface, sometimes it helps people keep their sanity especially if they're going to interact with crypto throughout their lives.
Unfortunately no matter how solid, matured, or experienced we feel when handling situations with crypto, if one doesn't have solid assets outside crypto, they're sure to make irrational decisions, the only difference is that it wouldn't be definitive or impactful as to the choices or decisions that are going to be made by a person with no experience to handle or salvage bearish situations.
However, what we're currently experiencing is mild, so what if we're getting to the region of 50 to 70% loss in dollar value?
More MONEY.. More Safety?
I think rich people will still experience the urge to move their crypto assets because rich or not, no one wants to incur a loss. However, there's no solid strategy to cope with bearish situations. the gloom becomes even more rampant especially when you've keyed in with reading sad tweets or posts that tend to signal the end.
The selling of assets can prevent further regrets or it can even bring more painful regrets. Sometimes people sell for the fear of losing everything, but these assets go up in prices contrary to their predictions.
This further proves that one man's loss, is another man's gain and one man's gain is another man's loss, which further proves that we "win" some and "lose" some. Everyone isn't losing or gaining at the same time even when it's bear or bull, some people will constantly lose or win, this is a cyclical process.
We don't always win and the fact that we can lose is the entry point or advantage to another person. So, what are some of the things you're guilty of doing when it's bearish?
Interested in some more of my works?
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Understanding & Adjusting To The Real Purpose Of Motivation
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@Josediccus, your brother-in-pen & heart
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