What happened today was an atypical case in the markets, which hit us all, we started the month on the wrong foot, a record of massive liquidations was broken, what was the trigger for this drop?, according to reports, Trump officially declared a trade war on China, breaking trade ties and proposing new tariffs, this was due to an aggressive reaction, there is still nothing officially established, however, the markets reacted quickly to the news, before this many people had already anticipated optimistically for these months, so there were many leveraged long positions, but when the drop triggered, a long squeeze occurred, automatically all long orders were being closed automatically, causing massive price drops, at the same time, short positions took control, as in the case of my copytrading that managed to achieve up to a 5x in minutes, which is ridiculous, we all long traders suffered with this event, my advice, do not panic, I know it is very scary, fear of losing everything, but the mathematical probability is that it will not go down forever, and if you get very nervous watching your portfolio fall, you might consider abandoning cryptocurrencies, for your mental health, your health is worth more than anything, but if you have conviction, we stay afloat on the ship with the storm at full blast.
What to do from this moment?
Turn disadvantages into opportunities, you have more room to accumulate more trending cryptos, for no reason leverage if your strategy is to buy and hold, put in money that you do not need, this will help you prepare mentally and strategically when these types of events occur, do not pay attention to market noise, be like a rock and behave like a professional investor.
We are still starting the month, there is still a lot of maneuvering time, this drop could be a bear trap, stay informed, do not fall for fud, this is part of the game, for my part, I am still here active.