Fear comes in various forms, fear of an animal, fear of insects, fear of heights. Sometimes you can have a sudden intense feeling of fright. Anxiety and panic are not just synonyms of being afraid. They also give a level in how distressed people are. Anxiety, sorrow, and pain can make you depressed.
How do you become the strong person you always wanted to be?
Check out the psychology of a market cycle. https://www.tradingview.com/x/1yQ4J9Oy/
Yes, history repeats itself. You have another chance to become “the smart money” person.
The story is about the average man who wants to be rich.
Once upon a time, there was a man …. (Nah, a dull start of a story, let’s dive into it!) Everybody is talking about investing in crypto, on the train, grocery store, even the cab driver has Bitcoin. So, he converted his last dollars into bitcoin. “It’s time for me to make money!” After BTC hits all-time high price (ATH), he feels unbeatable, on top of the world, Euphoria moment. Warmth satisfaction when the market cools down for the next rally. When this downward movement doesn’t seem to stop, fear and anxiety about what will happen to his capital play with his brains. “Is the dip over? The bottom is in! This dip is longer than expected.”
“Shit, everybody is selling! Wow, the news said Elon M. is selling. I need to do the same, sell-sell-sell” panic and money is a poor combination, especially when you’re following other people. Now that you have sold your assets, you realize the little gain you made before turns out to be a bust. Your balance is less than when you started this adventure. “It’s Elon’s fault; the market is wrong, those rich people f*** me over again.”
After reading this poor man’s story, let’s analyze the cycle of his emotions by reading the actual BTC chart. From November 2021 until today, you can see three mountain shape curves. Most ordinary people, just like you and me, are buying when the price is reaching ATH (the period marked as blue, February to April 2021) because words are on the streets. Even the cab driver owns Bitcoin! People are herd animals; instead of thinking for ourselves, we follow the horde. Like we are missing the boat, FOMO, the fear of missing out!
After the anger, depression kicks in. This lasted for almost 2 months in 2021. Fortunately, small hope and confidence in the market returned in the late summer. The following anxiety and panic were not worth mentioning, which sparked the new euphoria moment in November.
How to avoid depression
Analyze the last parabolic curve for yourself and determine which phase BTC is in now. At the end of the curvature, you see anger and depression. These are phases that we must avoid.
Profit is made by buying low and selling high. Nobody has ever made money by taking losses. Recognize the moment people start worrying. Instead of joining the pack by feeling the pain and negative thinking, gather resources to strike when others are in depression.
A quote from the most prestigious investor of the century. Warren Buffett: Be Fearful When Others Are Greedy, and greedy when others are fearful.
Be the strong person
The hardest part is that you have to be patient. Start accumulating fiat when people are ecstatic, don’t FOMO. Sell half of your assets to play the game aggressively. A strong person sells when prices go up and holds when prices tumble. Have no mercy when people are panic selling. It’s your time to be competitive and greedy, buy more, more and more. This time greed is good. You are the whale!
