Now comes an important example.
What if you do diligent research and you find a wonderful cryptocurrency or coin token for a cheap price
five cents but then masses and a big audience haven't yet heard about this koan and it's dropped to
$0.03 to three cents.
Let's say you have put in 1000 dollars here now drops to three cents.
You have lost already $4000.
What should you do in this case.
Do you now sell your coins to cut losses you lost on the 4000 but not more.
Not 10000 not 5000.
Or do you buy more.
What would you do in this situation.
I've lost four thousand dollars but now you have a good opportunity to think that this will be a coin
for long term.
What will you do if you're long short term trader.
Probably cut your losses.
But if you are a long term investor what will be our answer.
There is a practical example of this situation.
There is so cryptocurrency called ethos.
Back then it was called Bitcoin's and the price of each coin was around five six seven cents.
People didn't know about this.
Cohen So what's the market cap was less than four and five million U.S. dollars and then it had started
going down down down down down down down down down and it went down until around 3 cents.
Let's say you invested $10000 in six cents.
Now you have lost $5000.
What would you do in this situation.
It looks very scary.
Nothing looks good.
It has gone down.
What we'll do to you how it started but quite a bit.
Quince What would you do.
And here is a long term chart for ETUs and we can see here we can't even see the drop any more in this
long term.
It was 4 cents here three cents there.
Nowadays it's like four five six dollars.
It has gone down a little bit from its peak for more than $10.
But when it was here down 3 cents if you bought at three cents let's say $10000 would be a millionaire
today.
So this really shows the potential if you have found a coin that will have a long term value.
There is a huge potential humongous potential and let's say that you bought it for what three cents
for $10000 should be a millionaire.
So that really shows the power of long term investing.
As for our question is of course who buy more if you have found a coin with a good long term value.
When it goes down you buy more when it costs a little bit more and you buy more.
It goes up and then costs down you buy more.
So that's what you do when you have found a coin with a good long term potential.
When it crosses you plot by more time cube buys more when other people are selling buy.
It's an opportunity for you to buy more.
And in this example you would have bought more for three cents.
And people find this coin and it's value to price goes up to 30 cents per quarter and then it went up
to ten dollars per coin and you made big profits because you found it earlier than other people and
you can clearly still keep on holding if you bought it for long term like two years five years or 10
years.
And now we are back on coin market cap to come and we see the current market cap of all cryptocurrency
is around 460 billion U.S. dollars.
It sounds like a lot but recently it was more than 7 billion U.S. dollars so it has gone down very dramatically.
And when you look at this chart everything is under threat because one has gone down 15 percent internal
and 22 percent triple 27 percent Bitcoin cast 20 percent.
Everything is going down.
So if you are a long term investor and you have found potential let's say an interim what kind of action
should you take in this case should you sell it and hope that it will go down even more so we can buy
cheaper.
Should we panic or should we buy more.
The action I took in this kind of position I put even more money.
I took money from my bank and I put more.
So I can get them for a cheaper price.
It's like a discount price.
If you go to Wal-Mart something is 50 percent cheaper of course to buy it if it's in the discount price.
And the same here when the prices lower the opportunity is bigger were with this one.
The point of maximum fileshare Chris is here the point of maximum financial opportunity is here when
the market price is low then it has much more potential to go up and you can make even bigger profits
especially if you are a long term holder.
You buy first your optimism then it goes up you just hold hold hold when it's dropping you buy more
here and then it goes up again.
So you buy all this for a cheap price and you hold it for a low to.
That's the mindset of a long term investor.