Do you know when the next market correction is? Of course you don't!

in #bitcoin6 years ago

Bull and Bear.jpg

We're due for a (non-crypto) world markets correction.

We really are. After the last financial crisis stocks world wide have went on an insane run. Face it, kiddo. We've been in a bull market these past several years.

But markets are cyclical, and this has been established time and time again. Look far back enough and you'll remember Joseph interpreting the Pharaoh's dream that Egypt would have seven years of prosperity followed by seven years of famine.

Now, if you look at the time, it has been a bit over 7 years since the last bull run started (ironically, around the same time BTC started...). And many people expected the market to pop in 2017. But it didn't.

So where is the market top? Have we reached it? Are we somehow in a mega cycle where we'd be in a bull run for 20 years? The truth is, no one knows.

But one thing is for sure, speculative activity tends to increase around market tops.

Market Cycle.jpg

In late 2017, institutional money was drunk off the money it has made in the past years, and just as a part of the cycle, it unconsciously looked for more specualtive activities to get into. And there was Bitcoin, ripe for the taking! And it started with CME and CBOE launching their futures trading operations.

Sure, the crypto market crashed soon after. But did the stock market? Nope. Not really. We're still asking ourselves every day if this is really the market top and when we would wake up to find blood in the streets.

An end of the stock bull market will come, sooner or later, and us who trade and/or own cryptocurrencies will have to have a plan, because we have no idea how this will affect the cryptocurrency market. In one scenario, the stock market collapses, and retail and institutional ivnestors flock towards crypto as a safe haven (their reasons for doing varying wildly) and the crypto market grows faster than you can click "buy" on Bifinex.

In another scenario, however, the stock market collapses, and just as everyone would be selling their stocks, they would be selling their crypto assets even faster because, in a traditional sense, they hold less intrinsic value than stocks. Then what happens?

For those of us who hold cryptocurrencies as a specific percentage of our investment portfolios and we had safely hedged and we're in it for the long term, we can just ride the wave and not worry. But for those of us who keep asking "when will X moon?", buying and selling with no clear strategy or objective other than to make obscene amounts of money, they might just be left with bags of coins that have been destroyed in the aftermatch of a stock market collapse.

Of course, we are not saying that you should never trade and you should only HODL. Absolutely not. What we are saying, though, is that you need to have a strategy.

And most important, this strategy needs to take into account the larger economic frame that the cryptocurrency market exists within. Whether we like it or not, we as individuals are still part of the global financial system and we WILL be affected by it whether it goes up or down.

So, please, if you're going to buy cryptocurrencies and HODl or trade away on margin, do yourself a favor and check the Wall Street Journal every now and then, or perhaps go on Bloomberg and real a couple of articles. No one is saying you need to be the next Buffet, but if you are going to take a risk such as investing in near-liquid assets such as cryptocurrencies or stocks, then you need to at least be aware of the biggest couple of financial headlines of the month (this is of course, in addition to checking CoinTelegraph every couple of days...)

There's a piece of advice you would hear often if you go into trading commodities, stocks, options, etc. That is, "Don't try to beat the market". We say, "Be prepared for whatever it throws at you".

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@therealwolf 's created platform smartsteem scammed my post this morning (mothersday) that was supposed to be for an Abused Childrens Charity. Dude literally stole from abused children that don't have mothers ... on mothersday.

https://steemit.com/steemit/@prometheusrisen/beware-of-smartsteem-scam

And the reason why is because @therealwolf is disgusting slimy pedophile that enjoys abusing kids. Here's proof of him upvoting child porn on the steemit blockchain. bigbadwolf indeed.

And the reason why is because @therealwolf is disgusting slimy pedophile that enjoys abusing kids. Here's proof of him upvoting child porn on the steemit blockchain. bigbadwolf indeed.

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