A Middle Course between Investing and Trading: Part 2
And a Check on the Longer Term Trend
Thirdly, the LINK chart. Once again, the common denominator that seems to show a symbiosis among many of the alt charts - that 38% correction. Where the nominal correction [price percentage from the top] can be daunting, this real and relative measurement of the whole exponential move [300x] provides some confidence for the eventual continuation of the ongoing trend.
And lastly a look at the BTC chart, and comparable appreciations from 2019 [the 2018 bottom]. Comparable with the more major alt coins as charted above, BTC is also showing a 23% real correction of the larger macro move up…. with the potential of an eventual dip of 38%. The macro corrections, as measured by real values and comparatively across the coins serve to show that the sell-offs are not catastrophic for the market going forward… though they may seem catastrophic for the prevalent expectations that were too great just a few months back. As can be seen below, major alts have held onto their gains. It’s simply a story here, as with BTC, of when the trade was entered. For those invested early and looking for the realization of profit in the not too distant future, the prospect still looks favorable.
To sum up, in the volatile and speculative market of Crypto, the phenomena we can be most certain of, outside the prognostications of bear and bull spectacles, is volatility. If this volatility is taken as a central concern then it can become your friend… as much as the longer term trend… or even perhaps a better one. With a multiplex strategy, profits can be found in this volatility, which at the very least can off-set any losses suffered in late buys, or buys held for the longer term. But as far as those longer term ‘investments’ go, which is the primary focus of this article, they are still performing. And it is those positions and investments for the longer term that have the best potential for leading to those truly exponential gains that the more investment minded are looking for. If in a year or two we find ourselves in a renewed manic market, the challenge then will be to sell.