Both are the answer if you consider yourself an investor. Obsessing over a single asset or asset class is a mistake many make, drastically reducing their chances of consistent profits, states Zaheer Anwari of SublimeTrading.io.
I understand the recent crypto craze. Before that, it used to be forex. 2022 should have (hopefully, but I doubt it) taught budding investors three things:
- The necessity of a balanced and diversified portfolio.
- The importance of a well-thought-out strategy, clearly laid out in a trading/investing plan.
- The ability to apply patience, protect capital and wait for optimal market conditions before re-entering.
Below I have Ethererum's Weekly Timeframe.
The price is in an interesting position. I mentioned in my previous article how the 200 simple moving average (2000sma) (black line in the image above) is a crucial level. It has a history of causing reversals in the market and the start of the next market cycle. If the price manages to break and close above the $2000 round number, potentially before the year ends, we could see the next bull run through 2023.
Below I have the weekly timeframe of the S&P 500 (SPX).
Lo and behold, the price is also bouncing off the 200sma (black line in the image above). Coincidence? In my previous article, I highlighted how the price on the weekly timeframe has bounced off the 200sma in 2011, 2016, and 2018, giving momentum to the bulls. Are we seeing the same price action and pattern repeat itself?
If the bulls manage to break and close above the $4000 round number, there is a very high chance of seeing the price work its way back towards the current all-time high and beyond. We are indeed entering a fascinating period in the market. Several stocks I still hold, such as McKesson Corporation (MCK) and AmerisourceBergen Corp. (ABC), are recovering nicely.
Once the right market conditions are confirmed, I will add the best stocks and cryptos to my portfolio. Just some patience for now!