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How This Simple Quote Can Save You From The Next Luna-Like Crash
In mere days, crypto currency Luna plummeted from almost $100 per coin to $0. This crash was so bad that a $10,000 investment at the start of the week would now be worth $2.
However, some traders saw the free fall as an opportunity to “buy the dip.”
They assumed that prices couldn’t get much lower and a rebound had to happen.
They were wrong.
Similar situations have happened before, when a crypto project goes bust or a publically traded company declares bankruptcy. People pile into the asset assuming it’s “so cheap it has to recover.”
Most of the time, it does not.
Investment legend Peter Lynch explains the fallacy:
Here’s another one you hear all the time, “It’s $3 how much can I lose?” I’ve had people call me up saying, “I’m thinking of buying this stock at $3. How much can I lose?”
Well again you may need a piece of paper for this, but if your…
