A simple strategy to consistently win with investing is to follow the trend of the current market.
Using a trend strategy, instead of over eager investing to buy the dip or invest in a cryptocurrency token during a bear market and expecting returns in the short or medium term is unrealistic.
Attempting to go long during a down trend market (like we are in today) is near suicide if you expect to pull out profits in the short term.
Unless you have trillions of dollars to prop up a market (cough cough the US Fed makes the money printer go BRRRRRRR) then you better respect the trend and follow it.
- Side note: The Fed propping up markets is important to cryptocurrency investing long term too. Read a mentor Arthur Hayes here explain the importance of keeping pace with the Federal Reserve’s balance sheet.
What do some of the best traders use to win in markets?
You guessed it, a trend strategy. One of the best traders of all time Ed Seykota has used primarily a trend strategy to make more money than he could ever spend.
Now specific to Bitcoin, new data shows that following the trend with Bitcoin means to invest for a four year cycle. You can’t lose right now for the next 5-10 years if you follow the trend is our belief. Citing a new report by Ecoinometrics:
No one who has invested in Bitcoin with a time horizon of 4 years has ever lost money… Is this going to last forever? No….
Can you expect that this will hold true in the near future? Yes. …
The reason is simple. If you are trading on short term horizons you are betting on changes in market sentiment, on specific news or specific short term dynamics. That’s hard.
But if you invest for the long term you are switching to betting on a macro trend. And things get much easier.
Ecoinometrics – Investment Horizon
In summary, using a trend investment strategy helps enable consistent investments in combination with a long term horizon. In our view, right now, the ideal long term strategy is to buy when the market is fearful and you are able to acquire your researched assets (like BTC and ETH) at relatively low prices (ex. $30-$33K BTC and $1800 – $2200 ETH).
Using dollar cost averaging to get into your full investment amount for the year you then hold your assets (while earning interest) until the next market cycle is trending up to then trim or readjust your investment portfolio.
Trend following is 🔑 to our investment strategies here and we hope everyone can find and stick with a strategy to be successful long term.
(Any views expressed are personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.)
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