This happening on a Sunday preceded an emergency operation I was scheduled to have on Tuesday at 7am. On Monday I was full time consulting, so late Sunday night I moved funds into place to be able to take advantage of the mayhem. The last thing I did on Sunday was to review both my investment plan and my trading plan (associated with Crypto currencies). Both plans stated "do not make unplanned decisions in a rush, or during any time of unexpected stress or market behaviour. In my case, it was the requirement to make a rush decision when I had not pre-planned this “what if” scenario of an almost immediate 20% drop. So I decided to take the “do nothing” option. As expected I was home by yesterday afternoon, and now in the cold light of day BTC has returned to within 10% of its peak, and ETH too. I had the 15 minute time interval plots of BTC and ETH up to 20:00 hrs on Monday 11th with a trending range of lower highs and lower lows plotted, in which the “short term plan” was to buy BTC between its short range of 29,500 to 33,000 (real time) or for ETH between 850 and 1,000. In the event, my most urgent task was to get to bed for a 5am start to the day of an operation in hospital. I decided on no action based on my imminent operation. My long term plan is unaffected. My medium term plan was very slightly impacted. My short term plan (for January only) was up 7% on the month to 9th Jan, and is now up 5% for the month. Whilst regretting my decision during this unfortunately timed event, I am more happy that I followed my plan than to have been proven to be on the right side of luck than the wrong side. It is this event and analysis that makes me believe I have become a real trader during the past year. Not so much for the actions I have taken but more for the fact that I have chosen to follow my plan rules instead of make short term decisions I may come to regret. I fully expect there will be a few more opportunities in 2021, and conclude that I am satisfied with my course of action in practice. The speed at which BTC, ETH and most of the Alts recovered also supports my belief that my portfolio value pretty much maps total market cap and note that as of writing it is back up to $1.078 trillion back from the 920 billion or so it was at the maximum excursion to the downside.
Edit - I mean, market cap is $1.078 trillion, not my portfolio value