Is now a good time to sell cryptocurrencies?
Yes, they are crashing.
But should you sell right now or should
you hold on while they bounce back?
That’s what we’re
going to talk about today.
Welcome to today’s Coffee with Markus!
Today we are going to talk about a question
that I receive all the time.
Right now I receive it regarding cryptocurrencies.
But it’s also happening with stocks.
It’s always happening when the markets are crashing.
And a trader, not really a trader, an investor,
looks at a large losing positions and now they say –
“Should I sell it, or will it bounce back?
Markus, what do you think?”
First of all I’m not a financial adviser.
I can give you individual advice,
but I want to share my opinion with this.
But first of all let’s take a look at the charts.
So here right now you’re looking at Bitcoin.
And you know bitcoin was going up up up,
then it went down.
And right now, yesterday we were below 6000.
Today we’re bouncing little bit back,
trading right around 8000.
Now yesterday in my private Facebook group,
somebody said….
Somebody said, okay I’m asking for a friend.
A friend has a huge position in Bitcoin.
And is right now concerned
because Bitcoin is going down.
So, sitting on a large loss,
and actually getting depressed.
I can understand.
So the question is;
Markus what would you recommend?
Well as soon as this question was asked,
of course somebody jumped in and said:
“Oh bitcoin is going to bounce back”
And yes, I believe we have heard this right here
when Bitcoin went to $13,000.
We heard it again when Bitcoin went to $10,000.
We heard it when
Bitcoin dropped to $8,000.
And then we also heard it again yesterday
when it become was at $6,000.
Now here’s my take on this.
Would you like to know if Bitcoin
is bouncing back or not?
I have scientific evidence
that it will bounce back.
Take a look at this.
There we go!
According to this analysis
Bitcoin will bounce back.
What do you think about this?
Just this morning, my webmaster Alex,
who is a genius, sent this to me.
And I just thought this hilarious.
Okay, but let’s talk about
when is the right time to get out of the market?
Because this weekend, we had our three-day live event.
And there was another gentleman who was heavily invested in Bitcoin and cryptocurrencies and said –
“I’m looking at a large loss. What should I do?”
Well here’s something.
It’s actually a quote from Paul Tudor Jones,
who is an extremely successful hedge fund billionaire.
I believe that his hedge fund is $20 billion.
And his own net worth is several
billion dollars.
So let’s take a look at this quote.
“If you have a losing position that is making
you uncomfortable, the solution is very simple.
Get out because you can always get back in.
There’s nothing better than a fresh start.”
Because here’s the deal.
When exiting a position.
It’s either too
early, or it is too late.
There’s never a right time to exit a position.
Think about it.
I mean you either leave some money on the table,
or you’re exiting too early, right?
There’s never right time,
get used to it.
So what about Bitcoin, or any other stock? this is what
This is what people ask me.
I have this stock, it’s down,
should I sell it?
Again, a fresh start sometimes is best.
If you’re right. now in a position
that you don’t want to be in –
I would get out of this, right?
And then start over and build your account up.
Because will it bounce back,
we never know.
And here’s the deal.
When you’re selling today, either you got lucky
and tomorrow it is crashing.
Or you’reselling today, and it will continue to go up.
I mean there’s really no right time.
Now here’s one thing though –
that when you make this mistake…
what you can learn from this…
This actually is a quote
from Henry Ford that says:
“Failure is the opportunity
to begin again more intelligently.”
So let’s talk about
how to limit your losses.
Because I believe that it’s important.
And if you haven’t been following for a while,
let me just briefly repeat what I always say.
“Never ever risk more than 2%
of your account on any given trade.”
If the trade goes against you by 2%, get out!
I mean there’s no need to hang on to a losing trade.
But that’s what most people do,
and this is what gets them into trouble.
“Trade what you see, not what you think!”
Because when you think, when you thought
that Bitcoin would bounce back –
when it went down to $13,000…
when you thought that it would bounce back
when it went to $10,000….
when you thought it would bounce back
when it went to $8,000….
you were wrong.
And this is what I’ve experienced in my trading career.
Whenever I thought something’s gonna happen,
I was wrong.
This is why these days, I’ve very clear rules where.
When I’m in a losing position,
and it’s getting 2% against me, I’m out of this.
This way I’ll never hang on
to a losing trade again.
Now last year in Houston, we had a gentleman
who attended one of our three-day events.
And his account was around $350,000.
And I said okay, so you’re doing well.
And he said,
Yeah overall my account is doing okay.
There’s just this one position I have a problem with.
I said: All right you want to talk about this?
And he said: Let me show you.
So he pulled out his phone
and he showed me his account.
And yes, there was a $350,000,
and then there was this one position.
And in this one position he was down –
More than half of his account!
And I’m sure that it might have happened to you already.
Or maybe you know somebody
who held on to a losing position for too long.
And again if you are in a position
that you’re uncomfortable with,
Get out!
Start over fresh!
And then apply basic principles.
And here they are.
Principle number 1!
Trade what you see, not what you think.
Principle number 2!
Always limit your losses.
Never risk more than 2%
of your account on any given trade.
Principle number 3!
Take profits while they are there.
My rule of thumb.
For $1 that I risk, I like to make $2.
Or for every $100 that you risk,
try to make $200.
For every $1,000 that you risk,
try to make $2,000.
Not $3000!
Not $4,000!
Not $10,000!
For every dollar you risk,
you try to make two.
And then you take money off the table.
The reason why so many people
are right now stuck in Bitcoin positions is because –
they try to 10x! 50X! A 100X! their position .
See sometimes it might work.
Most of the times, based on my experience, it doesn’t.
When you take profits
as soon as they are there, trust me –
nobody ever got broke taking profits.
Hope this helps.
Well “Share” this video with somebody
who needs to hear this message.
Who right now might be stuck in a losing trade…
Who is wondering what to do with it…
“Like” it!
“Comment” on it!
And I’ll talked to you very soon.