Don't let fear dictate your investment decision. Not FOMO and not Fear of loss.

The bear market is the flip side of the bull.

Of course, most people know that.

The difference is one between fear and hope. Fear in the bear, and hope in the bull market.

As we are in the bear market now, there is a particular reminder I need to drum into my own head. That is to manage the fear.

There are two immediate fears.

Fear that the unrealized paper losses in the assets owned might never recover. Already seeing red in the assets I own, there is a tinge of fear that they will stay down forever. That means I have lost.
Fear that the market go down further. Related to the first point, the decision to DCA even in the bear market will always bring about this fear. The price tomorrow getting lower than today always hurt.

Actually, such thinking is as debilitative as the hope in the bull market.

Look, in the bull market, because of hope and euphoria, people tend to invest irrationally, thinking that the market will go higher. The fear of missing out is real when the bull market unfolds. Most people will be finding it hard to take a profit because they believe it will ride higher.

Then of course, the blow-off top or some kind of sudden crash happens, negating the gains. Sometimes even resulting in losses.

These two opposites of bear and bull has a commonality: Fear

Fear of losses in a bear, and fear of missing out in a bull.

The successful trader or investor should not operate in fear. The investment decisions should be based on sound principles. And one of which is to buy low, sell high. Of course, on quality products and after setting aside a substantial foundation for cushioning unexpected and regular expenses, i.e. savings.

The thing to do in a bear market is to buy, and then to sell in a bull. Buy when others fear, and sell when others are euphoric and hopeful. Warren Buffet is credited for saying this, I believe.

This is of course easier said than done. No one knows when to buy when the bottom is unknown in the bear, and no one knows when the peak is to too.

However, there is no denying that what is purchased at a lower price will yield a greater profit when the bull market comes. That also means that tolerance for missing the top can be gained when we had bought at a lower price, i.e. there is likelihood that we can sell distance away from the top and yet there will still be profits.

The takeaway from this is: Don't let fear dictate your investment decision. Not FOMO and not Fear of loss.

Invest safe, my friends!

P/S: This is not financial advice, and please do your own due diligence before investing.

If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.

You might be interested in this post, @jacoalberts and @youngkedar98!

Don't let fear dictate your investment decision. Not FOMO and not Fear of loss.

Hey! I'm Rafiki.