Hey everyone! Just wanted to shout-out this anime..APOTHECARY DIARIES!! No idea why I didn’t start w my other seasonal but this may be in my top 3 for the year. It’s that good! Such a refreshing episodic like series w great characters, world, and animation. Must watch imo.
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Times of consolidation are times to decide your next moves in the #Altcoin markets.
It might be challenging. Altcoins are moving left and right, but some are doing nothing. What's the best decision to make?
Which ones are to invest in, and how can you be risk-averse?
Yes, social media can be an evil place regarding information regarding crypto and altcoins. Most of the accounts have their own bias, interest, or anything else with the data they provide, through which it's hard for the reader to realize which incentive they have and what you can get out of that information.
Nevertheless, in the past weeks, we've seen altcoins providing a tremendous return, and there's even a glimpse of what a bull market means, which we can see in an asset like $BONK. This one went up 200x in a matter of 2 months.
Yes, those things happen in a bull cycle.
Few lessons to learn from that:
- If something is up that much, it doesn't mean you should be looking for an investment into it just because it's up.
- If something is moving that much, and you're a day trader, add $BONK to your watchlist of assets to day trade (which usually means you'll have a tighter TP and SL strategy).
Apart from that, the keynote you'll get is that people start to feel the Fear of Missing Out as some lucky ones will share their profits on that specific asset.
Generally, those returns are massive and are an outlier. Seasonality is essential; in the previous period, we've seen momentum in specific segments of the markets. This momentum always starts in periods of consolidation.
If the markets are consolidating, you should look at projects and ecosystems that didn't move at all. Why? Well, it's all a loop of investors.
The intelligent investors step in during periods of calm waters when fundamental progress is being made, but the price doesn't follow along.
The dumb investors step in when the hype is at its peak, which means that intelligent investors are in their window of taking profits and will do so that the market momentum will change.
In that regard, ask yourself: if I was going to get a position into an asset that is up a lot, does that mean I'm behind the group, and what's my upside? What percentage would I give that the scenario I'm making for this will work out?
It would help if you also did this for the downside scenario (as there's always a downside scenario). Then you'll realize that in this period of the markets, you'll find out that many ecosystems didn't move and that there are still many projects out there in their accumulation phase and ready to make that 2-10x in the coming period.
The moral of the story don't chase the hype. Research, spend your hours, allocate your positions wisely, and be patient. Your return will come.
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