When Is The Right Time To Buy During A Market Correction?

market correction

This is the million dollar question:

When should you buy, and what truly is the end of the dip?

As Warren Buffet and most institutional investors advise, always buy the dip…

When Is The Right Time To Buy During a Market Correction?

Well, first off we need to cover a few factors.

With the overall market cap down from  $800 Billion at its high, to $400 billion (around 50%) there is a lot of panic in the streets.

Bitcoin, Ethereum, Litecoin and most altcoins are starting to wither, with days of 20% or more drops, followed by accidental 5-10% drops and then a few bounces back.

There is a lot more to be seen.

When it comes to investing, investors need to use a principle called “Dollar-Cost Averaging.”

What is Dollar Cost Averaging?

“Dollar cost averaging is an investment strategy with the goal of reducing the impact of volatility on large purchases of financial assets such as equities.” (Wiki)

Unlike the typical investor who buys during the high, and sells during the dip, and repeats the past over and over again, this is a strategy that works.

By buying incremental amounts from your overall allocated budget, and doing this over a longer period you can avoid the perils of volatility.

This can make many days see substantial rewards and others see a steep loss.

Granted, over time, the average will always elicit the best results.

What should we be doing in this bear market? And when should we be buying?

First off, make sure that you have the capital at hand.

During a bear market, it isn’t the time to buy using debt because unless you’re a genie, you won’t be able to predict the future.

And future debt, increasing in a bear market will make anyone nervous.

So, buy incremental amounts each point that the coins cross.

For instance, having a buy order at $6,000 Bitcoin, $7,000 Bitcoin, $8,000 Bitcoin and so on will let you get it at many different prices.

Then relax, accumulate better positions and wait for the rise. That’s the strategy we are taking here at GCA.

 

Thanks for reading,

The GCA Team

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