This week has been the week of mega dips.
And I must say looking at the dips that I am having, it cannot compare to these mega dips.
Firstly there is the amazing 56% plunge that Upstart had when it did not meet the expectations. I recall my friend texting me asking if I wasvested and I said thankfully not.
Then there was the mother of all crypto crashes that dipped 98%, and to date 99% drop in Luna. This was widely covered in Tiger news as well as in my investment groups. Imagine your investment going down overnight like that.
What to do emotionally?
First, come to grips that your own life is more valuable than your investments. We are humanand to be human means we make mistakes. To err is human and to forgive divine. And we need to forgive ourselves for missing that assumption or letting that black swan hit us.
Pause and breathe. Slowly. Seek to reframe the situation. What is the lesson that you have learnt here? So boxed breathing. Breath in 4 seconds, hold 4s, then exhale 4s and hold 4s. Repeat it for a few mins till you have calmed down.
Lastly, consider recharging yourself by expressing gratitude and doing other things that bring you joy. Go for a walk. Meet up with friends.Be grateful that you still have a life to lead. Contribute to others.
What strategies can we do?
We will want to recognise the fact that the crash has occurred. Consider the following options:
1. Exit your position. Something left is better than nothing.
2. Average down. Do note however this method makes sense provided your investment thesis still holds and that you have sufficient dry powder.
3. Seek for other people's opinions. Sometimes other people might have a perspective that ican turn things around.
Key point to take note is to calm down, acknowledge your emotions and to seek the most rationale path forward.
Have you experienced a bad dip before?
How did you cope? I am keen to learn from you. Thanks
@CaptainTiger@TigerStars@MillionaireTiger
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