What should you do when bear comes?

I've seen a lot of newcomers in this sub asking similar questions. Is the bear market close? If yes, what should I do?

For the first question no one can predict the future, yes some technical indicators say that the market should still be green a little longer. Yes sentiment analysis shows that some of the fomo is dying out. But, just as in 2018 and even before it there will be one day when you wake up and everything is red ... Poeple will tell you to hold the line, they will tell you to buy the dip. But this time the dip will continue dipping, until eventually you starts seeing less posts and less comments in this sub and most people get bored and move on to something else.

What I would like to answer is the second question. If you think the bear market is coming, what should you do?

Step 1: Set up a plan. Do you need the money? how sure are you that the bear market is close? Do you plan on reinvesting in crypto when things are cheap?

Step 2: Get a target. The idea is to target a percentage of your portfolio that you want to sell based on your plan. Anything between 0% and 100% is ok. Did you reach your moon and are sure you don't want to reinvest in the near future, then you can choose 100%. Are you only comfortable with losing 50% of you portfolio, then get back the other 50% in fiat. Do you really don't care about this money and are unsure about bear market coming soon, then go for 0%. Your target should be chosen carefully, based on your analysis, your needs, and your future plans. Once this is done, if you did things right this target should not change later and you can move to step 3.

Step 3: If target is 0% just skip this step. DCA = dollar cost averaging. There are two components to your DCA. First the time component. You want to get to your sell target within a reasonable time frame. What I would advise new comers is to keep it simple. For instance sell the same % over a period of three months. Once each week. Mondays seems good for the price. The second component of your DCA is about which coins to sell. Generally the more gambly a coin is the more you want to sell of it. Historically altcoins crash harder than bitcoin in bear markets, and many, many small caps just go to 0. Once you start the DCA, try as much as possible to not deviate from your plan. If you did you research right, only a major unexpected event should change your target or which coins you want to sell.

Step 4: Do not be result oriented. Chance is inherant to markets. You did all the best choices given the information that you had. Maybe you sold a coin that mooned. Maybe you held everything and the market crashed. It does not really matter, as you couldn't anticipate the futur. You minimized the risk and maximized your expected winning. And although reality is always different from expectations, expectations is all we can compute.

The same method can be used if you want to enter the market. NFA btw.