The Market is Broken- How to Survive a Bear Market

in #steemleolast year

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The circuit breaker triggered on the American Stock Market once more today. This was in response to President Trump's national address in which he laid out a plan
Today, stocks suffered the worst fall in a trading session since the 1987 crash. This was a mammoth loss as 2,200 points were shaved off the DJIA index. What a rout! The cryptocurrency market fell as well, and Bitcoin hit $6,200 as it lost more than $1,000. This was the result of Wallstreet traders who sold off due to their anticipation of capital injections into the market and rate cuts.

For those of you who survived the Great Recession of 2008, this brings back ominous memories. The DJIA fell from $14,000 to $6,500 in short order, and the result was an eventual 11-year bull market in equities that has finally come to an end.

Are stocks and cryptocurrency a bargain here? It's not likely. With all the unrealized supply-chain disruption, we are sure to see more pain in both markets. Bitcoin has seen its first downturn, and has been slaughtered like equities and oil. Gold rose and dipped, and it looks like traders are selling all assets. The oil wars, coronavirus and overbought equities market have provided the fuel that has powered the downturn.

I am buying ethereum-based ERC-20 tokens including ZRX, IOTX and BAT after the massive drop that occurred on the past 24-hours. Ethereum itself dropped below $200, and fell 30% today. I highly suggest remaining liquid, and keeping your powder dry. Equities and cryptocurrencies are overbought here, and economic headwinds favor sellers.
How does one survive a bear market? In much the same way one thrives in a bear market. Research and prudent movements of capital into risk-assets are key to survival and thriving in either market. Avoid going "all in" on positions, and rather focus on dollar-cost averaging. The key is averaging down your position's cost basis and putting regular contributions into the account. The key is moving your cost basis down through disciplined and metered contributions.

Stay disciplined, clear-headed and keep the faith.

Originally published in my Publish0x account I own at:

https://www.publish0x.com/introducing-myself-on-publish0x-wstanley224/the-market-is-broken-how-to-survive-a-bear-market-xyxnjq

Also published in my Steemit account I own at cryptoedify and my Weku account at wstanley225

Sources:

Picture from Pixabay.

https://www-barrons-com.cdn.ampproject.org/v/s/www.barrons.com/amp/articles/dow-jones-industrial-average-suffers-worst-day-since-1987-as-panic-take-holds-51584044419?amp_js_v=a2&_gsa=1&usqp=mq331AQFKAGwASA%3D#aoh=15840595700295&referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.barrons.com%2Farticles%2Fdow-jones-industrial-average-suffers-worst-day-since-1987-as-panic-take-holds-51584044419

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Cost dollar averaging is tour friend! I’m waiting for an additional 15-20% pull back at that point I’m hitting up leverages ETFs. However, I’ll be watching closely to see if that needs to be adjusted based on current events.

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