Dealing with the Current Market Situation( Psychological point of view) - [25% set to Null for Burnsteem25]

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As a trader in the financial market, the bearish market creates a lot of uncertainties in the market as traders panic about the best option to protect their investment. This situation is worst for the cryptocurrency market with highly volatile assets. Not making the right decisions can be catastrophic to one's portfolio.

It's not easy watching your portfolio reduce by 50% in a short period. It takes strong emotional stability and psychology not to react negatively. The goal of every investor is to make a profit and not lose. When the opposite happens, we tend to be emotionally disturbed which might lead us to make bad decisions in the market.

Most traders make the most mistakes during market uncertainties and crashes. They feel they can take advantage of the market situation to make insane profits. Yeah, of course, the market is open 24/7 and you can either go long or short.

In my opinion, I urge everyone to remain calm and don't panic. The worst thing you can do right now is to FOMO in without any analysis backing up your decision. In this post, we will be looking at some tips a trader can deploy to deal with the current market situation.

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During market uncertainties just like the current situation in the crypto market, it is best to remain calm and not make insane decisions. This is the period a trader needs to put their emotions out of the market and think of the best decision to manage and allocate their assets.

It is not easy witnessing losses as investors but that's a market scenario we always have to deal with. From personal experience, market sentiments are the best moments I stay out of the market. I don't care about the market at that point, instead, I remain calm until there are signs of price recovery. Looking at the present cryptocurrency market, the structure is still bearish. Also, if you have been holding up till this moment, I don't see any reason you should consider selling. That might be the worst decision you will make to sell at a loss.

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This section is mostly for intraday and swing traders. I urge you to maintain proper risk management in your positions. The crypto market is highly volatile and it is risky to trade at this point with good risk management. There are so many ways we can manage risk and this includes:

• The use of Stoploss.
• Avoid the use of high position size.
• Avoid high leverage.
• Avoid low cap high volatile cryptocurrencies.
• Always have an exit point.
• Do not put all your eggs in one basket. I'm sure you under what that means.

Risk management has always been an important part of trading or investing which should be included in every trading plan. Before executing any trade or making any investment, make sure you have stated and analyzed your risk.

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The key levels are the support and resistance areas on the chart. These areas come with high supply and demand. Also, traders look out for these levels for potential breakout or price reversals. During market uncertainties, the big players take advantage of the key levels to manipulate price and mislead retail traders.

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Looking at the chart above, we can see a false breakout in the price of Steem. Price broke above the resistance level and later came back to close below the level. Most traders must have placed stoplosses above the resistance level while others will FOMO in thinking this is a price reversal.

We should always be careful when price is at a key level. There are so many breakout strategies one can deploy to avoid falling for fakeouts in the market. There are a lot of sideways movements in the market and less volume. Trading in the market currently is risky and requires professional knowledge.

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The above tips discussed in this post can help to stay on guard and avoid making wrong decisions in the market. Hopefully, the market will bounce back and regain stability.

Note: This analysis is based on my personal opinion and knowledge. This is for educational purposes and not a piece of investment advice. Please do your own research and invest what you can afford to lose. The crypto market is highly volatile and risky.

Cc: @reminiscence01