Investing mantra to keep you sane for today's down market
I bought into bitcoin when it hit $1,000 in 2013 and watched it crash down to $200 a few months later. Below are the quotes that helped keep me sane and stick with my investment plan.
“An investment in knowledge pays the best interest.”
– Benjamin Franklin
Nothing will pay off more than educating yourself. Do the necessary research before making any investment decisions.
“Be fearful when others are greedy. Be greedy when others are fearful.”
– Warren Buffett
Don’t be an investor fueled by emotions, this is how most people lose their money. They buy during a market upswing for fear of missing out and when they start seeing dips they exit the market. This goes against investing 101 of buy low sell high.
“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
– Warren Buffet
You should only be purchasing things that you believe in for the long term. Do not be tempted by short-term pump-and-dump investments. Do you believe things like Bitcoin and Ethereum will be around 5-10 years from now? Do you think those things will be worth exponentially more?
“The four most dangerous words in investing are: ‘this time it’s different.”
– Sir John Templeton
History doesn’t always repeat itself, but sometimes it rhymes. All markets have been through ups and downs. Bitcoin itself went through terrible bear markets. Be prepared for down markets because they will come eventually. Only ever invest money that you are prepared to lose.
“Price is what you pay. Value is what you get.”
– Warren Buffett
Do not get emotionally attached to the price you payed for something. There will be down and up days. Just because you bought something at $5 but now it’s trading at $4 doesn’t change what the value of it might be in the future.
“We don’t have to be smarter than the rest. We have to be more disciplined than the rest.”
– Warren Buffett
Most investors are too emotionally attached to their money to make correct disciplined decisions.
“In investing, what is comfortable is rarely profitable.”
– Robert Arnott
You may have to exit your comfort zone to realize significant gains. Know the boundaries of your comfort zone and practice stepping out of it in small doses. As much as you need to know the market, you need to know yourself too. Can you handle staying in when everyone else is jumping ship? This is why every new investor should start by Dollar Cost Averaging (DCA).
Accumulate your steem and Steem power. If prices get low don't bother selling, just keep accumulating. When prices go back up you will be glad you did. This mantra worked well for me so far. As for BTC and ETH I don't think there is anything to worry about long term. However short term it may not look too good.
great information!