How to stay calm on red days

We all have been there where we will buy a coin and a day or so later the coin dips a few percent and now you may feel like you are left holding the bag until the price rebounds.

Remain calm by remembering the most common advice in investing “only invest what you can afford to lose” let’s dig into what that means. If you lost your wallet would you be okay losing a mere $5-$10? What about $20-40 or even $100+ ? This is the number you want to figure out and use to invest.

Let’s say you are comfortable losing $100 per week, that would be $400 per month. With this number you are comfortable losing; whenever a red day hits the stress won’t be as heavy. I like to think of red days as days i can buy more at a lowered price and get a better average.

If your goal is to make money within a week or two you’re just gambling and you should reevaluate your goals before investing more of your money. If your goal is to make money after 2+ years then be consistent with what you are comfortable losing and you’re most likely to be in profit depending on what you are investing in.

I’m no professional so this is not financial advice but a way to help cope on red days going forward.

TL:DR “To stay calm on red days figure out what you are okay with losing and don’t over invest. It is all numbers at the end of the day but the longer you are consistent with it the more likely you are to profit. Think of red days as days to accumulate at at a discount”