How to play a bear market

So you have been sitting there for a few days now doing the right thing and hodling your alt coins waiting on the market to flip and start going positive. While this is a safe strategy you are limiting yourself in the long run. Markets will have their ups and their downs but if you only play the ups, you are potentially losing out on additional gains. Now this goes without saying that there is risk involved but there is always going to be risk.

For the intent of this discussion I will be using BTC as my main currency and TRX as my trade. My goal in all my trades is to ultimately increase my BTC.

Looking at the graph above, lets say that I bought in at 823 Satoshi thinking I had identified a possible upward movement and set a sell order at 870 Satoshi (just over 5% gain). If I hold, I would have sold when it hit my sell order 6 days later and would have turned 1 BTC into 1.057 BTC. My initial buy in would have got me around 121.5k TRX

Now, lets play the bear market strategy. So I buy in at 823 Satoshi and am sitting with 121.5k TRX. I see the market is in fact going down so I sell again at 800 Satoshi, my 1 BTC is now 0.97 BTC. I watch the market and see a turn around 556 Satoshi so I use my 0.97 BTC and buy back in. I now have 174.8k TRX. It stays bearish and goes down again, for the intent of this discussion, we will just hold at this point. Now when my original sell order is filled, I am selling 174.8k Satoshi versus the original 121.5k Satoshi. This increase now yields 1.52 BTC.

As you can see, I increased my overall profits by quite a large amount. I also reduced what my selling point needed to be in order to see a much smaller gain so in case it does not actually come up to 870 (although it did), I could technically sell at 604 Satoshi and still see my overall 5% gain.

My point here is that a lot of people get scared when there is a bear market. You should use this as an opportunity to increase the amount of coin that you are holding so when it turns bullish and goes back up, you can maximize your profits. Yes, there is risk, what if you sell and it turns back around again, well you can always re buy and increase your original sell order to still capture your gains but I think this strategy will allow you to make your investments work for you during these bear market runs and then you can really capitalize when the bulls come to play.

I hope this helps and that you enjoyed my thoughts. Please feel free to post your ideas below and what you think of this.

NOTE: I am not a financial advisor and this is just my opinion. Before making any investment please make sure you do your research and fully understand what you are investing in!