đ What should you do when an asset drops?
This is where the strategy is tested.
If the decision was made only because âeveryone is buying,â the first drop easily triggers panic.
But if youâve set beforehand the time horizon, acceptable risk, and the assetâs role in the portfolio, you can assess the situation much more calmly.
Thatâs why I wouldnât build a strategy around constantly forecasting the price.
Itâs better to know in advance what youâll do if your forecast turns out to be wrong.
Thatâs exactly what risk management is, to me. đ§
#bStocksCIS @BinanceCIS
This is where the strategy is tested.
If the decision was made only because âeveryone is buying,â the first drop easily triggers panic.
But if youâve set beforehand the time horizon, acceptable risk, and the assetâs role in the portfolio, you can assess the situation much more calmly.
Thatâs why I wouldnât build a strategy around constantly forecasting the price.
Itâs better to know in advance what youâll do if your forecast turns out to be wrong.
Thatâs exactly what risk management is, to me. đ§
#bStocksCIS @BinanceCIS