Things That May Affect You Emotionally in the Bull Market without Knowing
I find myself almost like an observer during this bull market, following my plan and also analyzing the reactions of others, what excites them the most, what interests them the most, and what topics or events influence me the most, as far as I can tell.
I observed today, for example, that a well-written article overflowing with positivity and excitement toward what we should expect for Bitcoin this time around started to build up excitement in me too (the kind that clouds judgment), despite enough evidence of pure speculation that defies logic.
It was not the price targets that built up excitement (at least not for me), it was the narrative, the package, and the writing that were contagious. I know people close to me who went to product presentations with the mind made not to buy anything and made incredibly stupid choices because they were sold into it. And I'm not saying the author, in that article was trying to sell anything but his own thoughts and opinions. But it is still contagious, and you will see more of that. It is only the beginning. The bigger the influencer, the bigger the impact.
I also see people jump(ed) into various things during this bull market: Solana, meme coins, etc.
I did the same in the previous bull market with Thorchain, and Cosmos, apart from BSC and Polygon. I don't regret it, I made some good profits with Cosmos, some of which topped up my crypto.com Visa card. I also lost 2k in UST+LUNA over there (some of it recovered later). But overall, I blew the previous bull market in different ways, maybe the biggest time in Splinterlands. At some point, I could've sold my land for 50k+ USD and bought it back for 10k USD in the bear market. Plus all the other pumped-up assets. My Splinterlands account was over 100k USD at the time (probably by a good margin, but I'm too lazy to check). But ain't hindsight 20/20?
So, what I did was be (almost) everywhere. What I didn't do was take (enough) profits, which is the most important thing in a bull market.
This time around I prefer not being in many places and focusing on what is the most important thing: to take profits.
When to take profits is a pretty complicated question given the influence of ETFs, but it will be a decision based on price levels and the phase of the bull market. And it will be a DCA out.
Something I've always avoided is meme coins. In my opinion, they are bad if you make money with them and bad if you lose money. And I'm not talking about the lack of utility or the risk associated with them.
I'm talking about the emotional roller coaster. They will make you an emotional wreck, whether you win or lose. And if you win huge based on a tip, and never touch them again (doubtful?), then maybe it's worth the risk, but if your main portfolio is something else, you can't afford to become an emotional wreck because of meme coins gambling.
Why do I say they will make you an emotional wreck? First of all, they wildly pump and dump, so you need to watch them constantly. And with every up-swing, your morale goes up, with every down-swing, it goes down. Plus the constant worrying and questioning: should I take profit now or let them pump more? Should I cut the loss now or maybe they'll recover? Of course, you can set limit orders, but meme coins are generally picked as one-cycle coins with no real history and indication of what's to come. You don't have any idea where the price would go.
I also don't check prices all the time. I mean, I check them daily, it's the bull market and things happen quickly and you have to be aware and able to take action when price movements align with your exit strategy, but I don't check them every half an hour or so. I used to do that some 5-7 years ago.
Have you noticed what affects you emotionally the most in the bull market yet and what doesn't seem to? What do you do about it?
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Those are some great points. I notice myself getting emotional excited by some influencers and need to try and check myself. I don't play with memecoins and have kept my bag pretty conservative with a few small speculative plays. I have some targets and timings when to pull the trigger and what to reallocate to, hopefully I can execute. The big conundrum is obviously Bitcoin and where it goes and drawdown in the bear 🐻.
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Thanks! I'm expecting we won't be able to fight the FOMO very well toward the end, but hopefully, we'll be able to execute our plans. Some parts maybe we should automate by creating limit orders instead of relying on us to pull the trigger at the right time, especially as we advance into the bull market.
One of the reason why a lot of people will be having bad feelings during this crypto space is when they should have invested but they didn't
People do have such regrets. I used to have them too, when I had one coin and another pumped. Time proved that if you are patient, the bull market lifts almost every bag, maybe not at the same rate, but they go up. What you don't want to have at the beginning of the bull market is too much fiat/stablecoins.
Another thing that affects people in the bull season is that they invest in coins that are not reliable
Some crazy meme coins, lol
People will always try to "win big". We always have to wonder if the various risks are worth it.
things are effecting me emotionally
We are all affected, even if we don't realize it. Try to stay away from the things that affect you the most during the bull market. Or build some sort of a shield when you consciously expose yourself to them, like reading news and posts that hype things up.
Great points brought up and these are stuff that people don't realize at the start.
Especially newcomers to the crypto world are likely to make almost all the mistakes possible during their first cycle.
I like these types of posts that remind people to stick to one's plan, and control emotions. Crypto prices move so much more than stocks, and each swing can mess with the decision making. Taking emotion out of the equation can usually bring better results.
That's usually easier said than done, unless you automate the process.
Yeah. But there are more tools now like auto TP, Trailing Stops, etc.
Yep, that's what I meant by "automate". 😀 I wasn't going with my mind as far as scripts.
One thing that I do is to write down that I want it and then check back in a few days. Usually, that doesn't make too much of a difference in terms of price though and it allows me to stay more rational.
Do you mean like a short-term plan? Otherwise, I check the plan I made at the beginning of the bull market at least weekly and act on it where it's the case.
Some narratives can be really contagious, selling us on a possibility that could or is about to happen. For me, I like to feel the emotion but not react to it, as in let it influence what I do next. As you rightly pointed out, some of these narratives are mere speculation. So it's always important to be as realistic as possible during this whole bull season. 'DCA out' is something I've been thinking a lot lately as an exit strategy, I think it seems more actionable than a single price point exit strategy.
You have to be strong not to be affected from some threshold upward. I suppose it depends on how cold and calculated we can be in emotional/stressful situations.
Most people lose touch with reality during the latest phases of the bull market. I'm curious if now that I keep an eye on the market state of mind and my own even more than on prices I'll do better than the previous cycle.
I think it's the most rational thing to do. With the caveat that once we take profits we don't go back into the market during the same cycle. At least I won't. I burned myself a few times trying to ride several waves during the same cycle. The bull market is too short in crypto and emotions too intense to not make mistakes if you jump from one thing to the next.
I think that would probably be the case, since you'll be better prepared to handle intense emotions than previous cycles.
I'm quite comfortable with that caveat of 'DCA out', take some time off to re-evaluate and re-strategize before jumping back into the market.
The emotion of a lot of people will definitely be high in this season and this has been long predicted but let's look how it
I would never invest in those meme coins @gadrian. Remember when dogecoin pretty much disappeared? That was not very long ago during the bear market! Congrats on your wealthy land! Are you going to keep it or sell it? Have a great week. Barb !BBH !CTP #ctp
I'll probably keep it, unless it spikes to incredible prices again. Then, I'll think about it.
OK @gadrian sounds like a good plan! 😊👍
It is a fact that if you want to work in this market, it is very important for a person to have knowledge, otherwise the person will always make a loss.
Hehe memecoins can be fun sometimes, when dabbled in small amounts. It's not really an investment - more like buying the lottery or betting on the casino tables. I am fine to lose 100% for such "bets", so it's really for the excitement hahaha!
Yeah... But this excitement can make you lose emotional control of the bigger picture with your portfolio, especially if you start winning.