Have you defined your goals,entry and exit criteria in the crypto markets?

Have you defined your goals,entry and exit criteria in the crypto markets?

The last couple of weeks were a bull and joy ride for the crypto investors as Bitcoin and Crypto coins jumped significantly in price and Bitcoin crossed the $35K mark after a long time. So overall crypto market is giving positive vibes and I feel this period of market creates the most confused investors and traders. Since there are positive vibes, you might be interested in buying more and riding the bull more. On another note isn't the bull market for you to cash your profits and reap the rewards of investment that you have done in the bear market?

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So are you now confused? Should you cash out or invest more?

I think the answer to this question will vary from individual to individual and everyone should think about it beforehand and create a clear plan for themselves for their strategy for what they will do in a bull market or bear market.

Create Goals.

I think the first thing we need to do is to create goals for us that will clearly define what we want to invest in and how much we want to invest in it. Once you have a focus and a clear picture, it will weed out the confusion.

Entry Criteria.

I would like to build assets but I need to think about what range or value I think is a good entry criteria. For example, I like to buy Bitcoin or coin X, if I think about the entry criteria, I will automatically start researching, and understanding more about it and start creating an opinion or methodology to invest.
Here I define the current price in 3 categories.

1. Overpriced
2. Fair
3. Cheap

If it is overpriced, then it is not the correct time to enter, in a fair price you can keep investing to reach your goal, if it is cheap then you can buy more than your goal

Exit Criteria.

If you find the price is good for your asset at a bull market and you already reached or over-accumulated your goal then it is time to book profits, do not be carried away with positive vibes and overzealous shenanigans.

Own some physical assets and Stables too.

The most important thing is for us to preserve our capital in both bull and bear markets. To mitigate the risk of volatility we should have investment in the physical assets and stablecoins too.

These are my personal views and everyone has their own goals,entry and exit criteria based on their requirement and risk-taking capabilities. This article is just to emphasize that we should make a thought on these perspectives beforehand.

So have you thought about your goals, entry and exit criteria or do you think it is not needed at all?

Posted Using InLeo Alpha