I was reading some social media posts about the equity market. People were complaining that they are losing almost everything because nothing is working for them, no strategy is getting applied to the current market, or the market is not behaving as it should be. That is correct, the market does not act as per our sentiments. There are like 1000s of people who think about the market condition, but only a few of them succeeds in knowing about the market.
PC: Pixabay.com
And that is true, No strategy, no theme, no factor will work all the time across any asset class be it Crypto, Equity, Real Estate or Gold. Sometimes there will be growth, sometimes you have to put in extra to just accumulate more. Sometimes active Mutual Funds will be on top and sometimes passive is the way to go forward.
So what should we as an investor do in this scenario? Simple just stick to the basics, i.e. continue investment and try to accumulate good stocks and coins and d not think about the market conditions. If you are getting stressed, get away from the market for a while because Health is Wealth too.
You might be thinking that your portfolio is the worst and then everyone out there is making money except you. That is absolutely wrong, we can try to handle the worst possible outcome from the past but that is not a guarantee, but what is the guarantee is that we should invest as per our risk appetite. If we are conservative it does not make sense to invest everything in equity then if the market drops, a considerable amount of your portfolio is gone.
So no strategy works for the returns but there are strategies which always work to limit the risk you are exposing yourself in the market. Like Hive is now $0.50 and HBD is $1. If you have a portfolio with 70% Hive and 30% HBD then even if the Hive or market goes 50% down you have that 30% Stable Income coins which generate 20% interest for you in the worst market condition. So yes something works if you play the game nicely. We all expect our favourite stocks and coins to give us 10X returns but it can fall 10X too, just that we should be prepared for that loss.
And also we should not forget that there are multiple solutions to the same problem and we should not hop from one solution to another. If we have chosen our solution and if doesn't work out it does not mean it is not the right solution, it is just that we have not implemented it in the right way.
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