Bear Market Blues

bullsvsbears (62)in #steempress • 7 years ago (edited)

The cryptocurrency bear market has been dreadful for many investors. Most coins are down 70% + from their all time highs. Not to mention, most high market cap altcoins just broke important support levels. The outlook on the market is bleak as there is a sense of disinterest and depression amongst the crypto community.

FUD, what is it?

There has been an influx of what bitcoin/crypto maximalists call "FUD", which stands for fear, uncertainty and doubt. Albeit, there have been several hacks and events that have set the stage for the bear market. Yet, as a long term investor it must be understood that this is just how markets cycle. The bear markets are here in junction with the levels of hostility of Twitter, amount of fake news, FUD, and emotions. It can be a lot to handle. I think it's going to be worth it though.

Bear markets allow businesses to grow and develop. They are crucial for the development of the space. Also, bear markets rid the market of non-believers, get rich quick seeking people, and weak hands/minds. As a trader, it has been substantially more difficult to trade and push good results in this bear market, than in a bullish one. I have found greatness in this challenge. Not necessarily in myself as a trader(yet), but in the learning process. I've adapted my strategies and outlook on trading while picking up new skills.

Image result for trading

The mistakes that I have made in the past have made me sick to the stomach, as a trader there is only one choice and that is to get better. I've been reading a great book by Ray Dalio called Principles, it is a must read. Learning quite a bit about the "laws of nature" as they say. More importantly, I have understood the importance of being self-reflective. By finding one's principles, and living through and by them you can achieve "success" simply because the ability to identify your mistakes/weaknesses, fix them and thrive puts you ahead of many. This applies to trading in a plethora of ways.

The Grind

Being a trader means you have to be self aware, understand your mistakes/flaws and fix them. And if you do not, you will be #rekt. So, what are some ways you can do this?

Have a trading journal
Reflect on your losses/bad trades
Understand yourself emotionally

Being able to manage risk and see a trade is just a part of the game, being able to reflect on the trade and understand why it went well or poorly is a whole other ball game.

Ways to Be a Better Trader

The only way to become proficient in any skilled area is hours and hours of practice and learning. So, the simple answer is spend more time on it. But, as far as specific directions go, I enjoy reading books that are filled with specific knowledge (this idea came from the book Think & Grow Rich). Basically, instead of just reading for pleasure, read a book that is going to help you get further towards your goals.

For me, I want to become a godlike trader. So, what will I read?

Technical Analysis of the Financial Markets- John J Murphy
Technical Analysis for Dummies
Intelligent Investor- Benjamin Graham
Market Wizards- Jack Schwager

These are just a few examples of how I plan to continue to learn and get better this summer/ bear market. Currently, I am reading the Dalio book I mentioned earlier, as well as Murphy's financial markets. They are both excellent reads.

As far as practice goes, paper trade and paper trade even more. It is truly a great way to test a new strategy or allocation %s etc... It's always nice to have a trial run before risking any real capital.

Final Straw

Bear markets are amazing because at some point we will reach the maximum opportunity of financial gains. This just means we have another shot at amazing gains, and this time I believe it will be even bigger than last rally. It only makes sense. However, the final straw to succeeding in this bear market is patience. There is a famous quote that markets are and always will be devices of wealth transfer from the impatient to the patient. This market may be boring for another month or another two years. Who knows?

Patience and conviction in your investment is what will make you the big bucks.