4 Mental Hacks to Remain Strong While Watching Your Portfolio Drop

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If you’ve been involved in crypto for a while, you’re probably immune to the sudden drops in value which could happen at any given time. For people who are new to the space, this could be your first experience where you’re fearful, doubtful, confused, and unsure what to make of “losing money”, if you’ve never experienced a situation like this before.

Below is a guide which can be used to take inventory of any negative situation in the market so you can make the best decisions to manage the cards your dealt.

If you’re not playing the game with an advantage, you’ll likely be taken advantage of. The mental hacks below will give you a sharp edge to win within any market climate.

1) Do Nothing: The art of doing nothing is the art of doing something. In music, a rest note is a measure of time where there’s no sound, in theory nothing happens. However, a rest note is still a measure of time and without rest notes music wouldn’t sound as good without silence between sounds. Doing nothing, neither buying or selling is often the best option if you’re uncertain about how to play the markets. Nobody wants to sell if a rebound is about to occur, just like nobody wants to buy if the market continues to drop.

People often underestimate how long a bear cycle can last so doing nothing when you’re seeing red across the board isn’t a bad decision. The purpose of any market is to shake wealth from weak hands so it can be transferred to stronger hands. It’s a game of psychological domination and how much can you handle. Sharks will exploit this if you’re playing with emotion and will buy your positions. For Bitcoin especially, bigger positions equals more power and influence.

Doing nothing when you’re unsure of what to do is one of the most powerful positions to take in any situation where reacting quickly with firm and final decisions is less than ideal.

2) Think Long Term: What coins, protocols, and companies do you believe are going to thrive over the next 3-5 years? Focus in those areas right now. If you believe you’re in a position to buy into those projects “at a discount”, taking advantage of a down market to move ahead in the long-run is a fantastic idea.

Looking at large controlling areas of the market which support smaller areas of the market (i.e. Ethereum to support ICO’s, Bitcoin as the major on-ramp to alt-coins, etc.) isn’t a bad strategy for obtaining a solid risk / reward profile to win over the long-term.

If you’re holding coins in your portfolio which you know little about, now would be a good time to do some research on those projects. Like many people, I’ve purchased coins from the recommendation of smart people I trust within the space simply because I don’t have the bandwidth to research every single coin that comes across my radar.

While I’ve profited a ton in many instances with that strategy, I’ll be looking into the coins I know little about to decide if I’ll be keeping them, increasing my position size, or selling them because I see greater long-term potential holding more Bitcoin.

3) Evaluate Previous Market Decisions: When you’re up and making a fortune, it feels good. That dopamine release is what keeps people amped about their decisions and keeps a steady supply of new money coming into these markets.

Fortunes can be lost as fast as they are made. For example, how many people felt like geniuses and rode Tron ($TRX) from fractions of a penny to north of $0.20 in less than a month? Given the recent climate of the market the only coin review we’ve ever published which was on the bearish side was last week, covering Tron. We saw this coming.

The same thing can be said about Ripple and a variety of other alt-coins which meteoric rises resulted in a price reduction almost as fast as it went up. Regardless of how you played certain positions you might be in, this is the perfect time to evaluate what you did right and what you would change the next time you’re faced with a similar situation.

History and patterns always repeat themselves during lifecycles of any market so keeping a journal or at the very least taking mental notes will put you in a stronger position to see things before they happen in the future.

4) Surround Yourself With Winners: If you’re in FB or Telegram groups with strangers who constantly spread fear, uncertainty, and doubt, find better communities to call home.

In any industry, what often separates you from being a winner or a loser is who you surround yourself with. Are you sharing and receiving information from people who are constantly negative, fearful, or overly-optimistic about projects they know little about?

You’re the average of the 5 people you most associate with and this couldn’t be more applicable when it comes to crypto. The first step to becoming a winner is to follow and surround yourself with winners and begin emulating their attitudes and behaviors.

Final Thoughts:

Stay strong! In many instances, fortunes have been made through buying heavier on the dips, consistent purchases through dollar-cost averaging, and taking profits along the way. Don’t deviate from the strategies which have yielded desirable results in the past.