Sonar, It Just Makes Cents

One Cent Territory

Another huge milestone has been breached! $PING officially crossed the $.01 mark this week and continued its massive upward movement into the following day. After briefly touching a towering new ATH of $.026, profit was taken by some of the larger holders resulting in a correction back down to the $.015 range where the chart begins to consolidate once again.

What does this mean for the future of Sonar? One Cent was a powerful psychological barrier that has now been resoundingly broken in a show of buying force. In claiming a decisive victory for Sonar holders, what was once a ceiling will now become a floor of support. $1.00 starts to seem not so far off after all…

The energy in the community is palpable with excitement and high emotions. Many are ecstatic with our recent upwards price action, but in some it has brought to the surface anxieties, fears, and left some distraught. Concerns over the correction which almost ubiquitously follows a rally can be seen in the words and conduct of community members, new and old, who find themselves caught up in the whirlwind of emotions surrounding volatile price action.

Having A Plan Is The Fear Killer

Many sense that $PING is on the precipice of historic growth and upwards volatility. But what goes up, must always sometimes retrace its steps as it finds a homeostasis. Downwards price action can be distressing for some, so let us take this opportunity to revisit the strategies of investing. If you have the knowledge, then you can have a plan. If you have a plan, then there is nothing to fear.

Never invest more than you can afford to lose, or need back quickly for expenses. Whatever amount you choose to invest should always be an amount you are comfortable being without for an extended period of time. Should the price fall to a large deficit and never recover, it is not the end of the world. Or, should your investment take many months or a year to fully mature, you have the freedom to leave your funds invested while the asset takes its course. Always sticking to this rule is one of the main ways to reduce or eliminate anxiety tied to price movements of your chosen investment vehicle.

Dollar Cost Average. What does this mean exactly? We suggest it to our community in chat often, but maybe you still aren’t sure exactly what DCA entails. DCA is an investment strategy of buying in small chunks, and spreading out your buys over an extended time frame and price entry points. The reason for doing this is to “average down” the overall dollar to token cost. Some choose to invest on a time schedule (I will buy $100 of $PING every Monday, no matter the price). Some choose to only buy when the price dips 10–20% from the current price, etc.

There are other strategies of chunk-buying that would qualify as DCA. The common thread is that you, the investor, is taking an allotted amount that you are comfortable with investing (let’s say $1000), and spreading it out over several buys. Doing this allows you to adapt to market volatility and in doing so reduce anxiety and fear.

Never go all in. This is a continuation of the DCA investment strategy. It does not matter how strong an asset appears to be, whether its $PING or anything else performing well. It is never a good idea to go all in with all of your funds on a single asset. Going all in on one buy creates several points of potential anxiety. You are now emotionally tied to a single price point of an asset (your entry) with an amount that is likely too much to lose (rule #1 broken). The more emotionally tied you are to your entry price, the less likely you are to make logical decisions around the resulting price action of the asset. If the price starts going down, panic selling might seem like the only viable option since you are over-extended by going all in.

Have a plan to take profits. We will never shame or discourage investors from selling or taking profits. We encourage healthy profit taking and having a plan for doing so. Taking profits helps eliminate anxiety and decouples emotions from upward price volatility. You may be familiar with the feeling when an asset is skyrocketing in price. When do you sell? Will it keep going? How much is enough? You can cut through all this uncertainty by having a profit taking plan. Set price targets, and percentages that you want to sell. (I will sell 10% of my tokens when the price reaches $.055c). This takes the guesswork out and ensures you are locking in profits no matter if the uptrend continues or if it corrects.

Have a plan for dips. The price will always pull back no matter how strong the asset is. This is a certainty as predictable as the sun rising each day. Don’t be surprised or shocked when it does. Nothing goes up forever! Instead, turn what can be a distressing event into an empowering event by having a plan. What will you do during the dip? You have 3 options:

  • 1) Buy more. If you have been Dollar Cost Averaging, you should have funds set aside for additional buys should the time arise. If your plan is to buy more on the dip, this is a great time to DCA and improve your position. Red candles = more profit.
  • 2) Just hold. You have faith in the asset and the team behind it. You aren’t deterred by temporary price movements and you have a profit taking target in mind that has not yet been reached. You sit back and enjoy your free token reflections while the drama plays out on the chart.
  • 3) Panic sell. This usually isn’t in most peoples plans, but sadly it is one of the most common reactions to seeing red. It is the worst outcome and the most illogical action for the investor. It is never beneficial to panic and almost always results in a loss. Panic selling can be avoided by never investing more than you can afford to lose. Never over-extending your position by going all in. Always research what you are investing into so that you can feel confident about your choice.

Knowledge empowers, and the lack of it breeds fear. The emotional trader is the one with no plan. Knowing the basics and forming your plan is the key to your financial freedom and long term success. The team here at Sonar is here to help you find the tools to your success, whether it is our platform under development or our educational materials currently available. While we cannot predict the future, we understand the trends and cycles that are present in crypto investing. Now, you may understand them as well. Happy investing Sonarians!

-The Sonar Team

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