Bobos & Wojaks

Get rich or die tryin

Some Rules To Live By After Dip

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  • “A bull walks up the stairs, but a bear jumps out the window” – bull runs tend to climb more slowly compared to how quickly a sell-off can happen. This can be quite frightening but just remember that as it climbs again you get a bit more time to add to your position (buy the dip).

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  • “Liquidity is key” – as much as it’s tempting to FOMO it all in try and hold back and DCA (dollar cost average) in and always keep some back. You never know when the dip will keep dipping. Conversely, as it rises, sell a little to keep some more on hand for future dips.

     

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  • “Time in the market is better than timing the market” – you’ll never time your trades perfectly, just follow the above rules and have patience. Both before you buy (waiting for a good dip) and then when you are in. Just be patient, better to ride out a dip and come out the other side than paper hands it.

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    • “Time in the market is better than timing the market” – you’ll never time your trades perfectly, just follow the above rules and have patience. Both before you buy (waiting for a good dip) and then when you are in. Just be patient, better to ride out a dip and come out the other side than paper hands it.

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    • “Don’t put in more than you can afford to lose” – I think this one is often not fully understood. I think people read this and think crypto could go down to zero and that’s the lose scenario. But really you don’t want to put too much in because all that ends up happening is you’ve got to sell to pay for some real-world stuff (rent, food, gas etc) and you can bet you’ll be forced to sell while it’s dipping.