The Psychology of The Market Cycle Explained
The market cycles can be explained from the psychology side of the average investor.
Throughout the various stages that develop in the market, the investor's emotions are also cyclical according to the "mood" of the market.
Market movements are explained by the investor when often hope and fear motivate his thoughts and actions and can predict his future actions.
Throughout the various stages that develop in the market, the investor's emotions are also cyclical according to the "mood" of the market.
The range of emotions ranges from despair to euphoria, and investors usually drive the wrong actions.
Awareness of the psychological side of the masses helps to avoid the effects of negative or positive sentiment and remain feckless on the market. In addition, we can also identify a stage or strengthen our position on the state of the market, explaining investors' feelings.
Once you understand this chart, you can control your emotions and deal without your hurt and with only your mind.
As this market cycle chart is repeating all the time, if you understand where you are located in the graph at any moment, you can take a cold decision of buy or sell a particular asset to maximize gains.
Marketcycles
Biil Williams Aligator Indicator Explanation on BTC MarketCapHello Friends.
Today we will explain Aligator indicator on BTC Marketcap Chart.
this post has 2 purpose:
1)BTC marketcap analyze
2)Learn how Bill Williams Aligator indicator works
First lets see how this indicator works:
The Alligator indicator is composed of three smoothed moving averages.
It is named ‘alligator’ because it mimics the feeding habit of the animal and can help traders
pick out the best times to ‘feed’ on the pips available in a trending market.
Here are the lines that constitute the Alligator indicator:
Alligator’s Jaw
This is a 13-period smoothed moving average.This line is typically visualised in blue.
Alligator’s Jaw = SMMA (median price, 13, 8)
Alligator’s Teeth
This is an 8-period smoothed moving average. This line is typically visualised in red.
Alligator’s Teeth = SMMA (median price, 8, 5)
Alligator’s Lips
This is a 5-period smoothed moving average. This line is typically visualised in green.
Alligator’s Lips = SMMA (median price, 5, 3)
Trading Rules:
When the lines are intertwined or converging, it implies that the market is ranging (the ‘alligator’ is sleeping).
The longer the alligator sleeps, the hungrier it will wake up; prolonged consolidation will imply a massive breakout.
The alligator’s lip will be the first to move (crossing above or below the jaw) when it is waking up, which denotes the
Begining of a new trend.
An upward movement implies an uptrend might be forming, whereas a downward movement implies that a potential downtrend is starting.
A trend will be confirmed when the alligator’s teeth cut through the lips.
This will be the signal to buy in a confirmed uptrend or to sell in a confirmed downtrend.
The signal to take profits will come when the lines start to converge again, which will mean that the alligator is now about to repeat the sleep cycle.
Now lets see what happened in BTC marketcap According to this Strategy:
We can see awakening of aligator from 9 march 2020 untill 12 april 2021.
it shows a strong uptrend and aligator lines divergence.
I show it with a Green Ellipse in chart.
after that aligator go to sleep for a while from 12 april 2021 to 18 jan 2022.
so we can see a Range in price and aligator lines converging.
I show that with a Yellow Ellipse in chart.
after that we see aligator lips and teeth breaks jaw and aligator awake in a downward trend
so we approch a bearish market and i show that with a Red Ellipse.
no one know how much this cycle last.
after this section i think aligator go to sleep again and after that awake upward.
please protect your capital and know about market cycles.
we could see new bottoms so we must manage our risk.
after that when diffrent conditions confirm uptrend we can buy again.
Remember:
Buy expensive but confident
!!!NOTE!!!
MY POSTS ARE NOT TRADING AND INVESTING ADVISE.
SO DO ON YOUR OWN OPINION AND CONSIDER MARKET RISKS.
Thank you all for reading this article hope that be useful for you.
share me your opinion in comment please.
An overlooked rule: Wait for the gamblers to have their funMarkets in general sort of always manage to find the nobs breaking point.
After big rallies, some may say bubbles, what is known as "dumb money" is attracted, and you might hear that "oh they don't mean dumb in that sense" if you believe this bs you know you are one of them. Where does this experession come from then? They used the word dumb but without meaning it? "They meant you didn't take the time to think" ye that's right, dumb money didn't take the time to think before buying, or before doing anything, which is also known as "being dumb period".
Serious investors know these creatures, these "emotionals", are morons. They don't want to get all unpopular so they don't just say the truth directly.
The market is not a separate entity, it moves because its participants move it.
Those nobs that get all excited, the gamblers and the breakeven idiots, they prevent the price from going up for 2 reasons:
- Gamblers buy & sell randomly, 1 because they are gamblers, 2 because they are stupid enough to be gamblers therefore are unable to make any correct prediction, if they try they'll be the kind to get excited twice a day and change their mind based on the latest fractal or magical secret indicator they saw (often accompanied by "I am a legend").
- Breakeven idiots love to breakeven. They buy randomly the latest hyped thing, might be a ponzi, might not, they are full random, if they only bought scams there would be some value to them obviously, but nope, full random. They are bad, they look to get rich quick, and hold bags. They hold to zero on the way down, and to nothing at all on the way up. After bagholding they get desperate to breakeven (see the GME clowns that bought at $350 and above), same with dotcoms.
How many idiots were relieved they could finally sell their Amazon shares at $30? Congrats man you got me you get last word well done you were right to hold your bag. You got your $30 a share back. Now Amazon is $3000.
So it's obvious what I'm getting at. Once these clowns get wiped out by a scary red candle after bagholding for years (Bitcoin first half of 2020) there basically is no more resistance, the few bagholders left will breakeven at key levels but it won't stop the uptrend, the majority of the breakeven bagholder herd got ripped to pieces by crocs when they crossed the river.
Nasdaq, Bitcoin, etc. The more gamblers and breakeven bagholders get attracted to something, the more vertically it goes up after they get wiped out.
And until they get wiped out the market never bottoms. They will never win. They are the ultimate illustration of what being BAD at something is.
Fun fact you will always hear from the 1% of this herd that got lucky, the ones with survivor bias "ye sure this river is safe to cross for wildebeests just look at me".
Wildebeests are the dumbest creatures I have ever seen, after weekend "investors" of course. The behavior, not sarcasm I am serious, the behavior is the same.
Do you want to be on the side of wildebeests or the side of crocodiles?
The survivor bias ones celebrate their "gains" showing their extreme ignorance, they act like the herd made money, but data says otherwise.
We used to have robintrack for example, also the UK regulator which banned BTC in the UK but even in Europe because too many people were losing too much money.
We could see visually the data directly. GME, Tesla... (GME from Citadel among others). With Tesla when they buy "the dip" and the price bounces they ALL end up selling on the way up, "breakeven", oh gosh myfxbook is mindblowing for this it's absolutely insane, the 95% on the wrong side of a trend, the average winner size and loser, the awful entries and exits etc.
And while TSLA goes up no retailer buys UNTIL THE TOP, and you know exactly what happens: THIS TIME THEY HOLD. Get rid of winners, hold losers. Brilliant.
They have this ability to buy at the very top, absolute genius. Hear some news then "sidelines" like they aren't late enough, then crack "OK NOW IS THE RIGHT TIME TO BUY"!
The vast majority of crypto bagholders and "dip" buyers that were desperate to catch the bottom ended up missing out. Isn't that amazing?
> Do not trade corrections in general
> When the gambling bagholding herd joins, get ready to exit and then stay away
> Let the gamblers have their fun, and get back into a market after they leave
It has always worked this way and it will keep working this way. Gamblers will ALWAYS lose.
Bottoms will ALWAYS happen once they get wiped out and never before that, no matter how hard they try to "HODL".
If it's not clear enough, if a Tesla or GME or BTC baggy is reading, it's not just about value investors: TREND FOLLOWERS FOLLOW TRENDS. TREND FOLLOWERS CREATE TRENDS. THE PRICEY NO GOY UP IF NO TREND HAPPEN BECAUSE BREAKEVEN TRADERS ARE SELLING. TREND START AFTER BREAKEVENERS AND RANDOM GAMBLERS GET OUT AND SELLING PRESSURE GO GO HOME. THEN PRICE GO GO UP NATURALLY THEN TREND FOLLOWERS FOLLOW TREND AND PRICEY GO GO UP MORE. IF NO TREND THEN TREND FOLLOWERS NO SEE TREND AND NO BUY AND NO PUSH PRICEY UP.
I'll make another idea where I get into this, more clean, and without using the word idiot every sentence :D
Funny how bagholders try so hard to get everyone else to hold when this is precisely what is holding them back, ignorance and stupidity are cruel jokes.
ETH/USD: Market Cycles and Investor Sentiment ExplainedIn this post, I’ll be shedding light on market cycles for cryptocurrencies, specifically Ethereum in this case, and how investors’ sentiments are reflected at certain phases of the cycle.
Market Cycle Explained
- We can refer to the graph in green, which demonstrates the overall market cycle
- Markets undergo phases of contractions and expansions, forming peaks during the expansionary phase, and troughs during the contractionary phase
- Overall, the market moves in an uptrend, forming higher lows and higher highs throughout
Market Sentiment Explained
- Along with fluctuations in price movement caused by volatility, traders’ and investors’ psychological responses are also reflected in the chart
- Prior to a bullrun, market participants are at a phase of disbelief. They think that prices will get rejected at resistance levels, and fail to break out
- After a breakout takes place, hope starts to settle in. People think that maybe a recovery to previous high levels are possible
- Then comes optimism. People start seeing the bullish trend that has been confirmed, and start thinking that this is the beginning of a real bullish rally.
- Afterwards, we have the belief phase, which is when people start to get fully invested in the asset or security. This is also where people start coming up with extremely bullish price targets for the long term.
- The thrill phase. People start getting extremely greedy at this point, and start buying more on margin, leveraging debt to increase their positions. At this point, prices are still going up on a daily basis, and people are still profiting from the immense buy volume, so they lead in their friends and family to invest as well.
- Then comes one of the most important phases, euphoria. At this point, people think they’re geniuses, and that they’ll be set for retirement next month. This is the phase were everyone is bullish, and the only thing leading price action is the momentum caused by new buyers
- The price of the asset tops out and corrects, reflecting a complacent sentiment. People just consider it as a healthy correction, and that the rally is deemed to continue upwards.
- Prices correct even further, stirring anxiety among investors. People start getting liquidated on their margin positions, and realize that the correction is extending further than they anticipated
- The denial phase then kicks in, as prices drop further. Investors refuse to accept that the trend has reversed.
- Prices drop even further, breaking all support zones, getting closer to new lows. Investors who have bought the top sell their positions here.
- Due to mass sell volume, capitulation takes place, and investors start thinking that the asset was never a solid investment decision.
- As prices consolidate around the bottom without any signs of a trend reversal, anger starts seeping in. People blame the market for being too manipulative, and the government for not regulating enough, and preventing such capitulation from happening in the first place
- As the phase of consolidation continues, investors experience depression. A sense of betrayal and self-pity, as they think of how they can retrieve their initial investment back.
- While they go through this negative phase of investor sentiment, prices break out once again, marking the beginning of the second disbelief phase.
Ethereum Analysis
- Ethereum is demonstrating this market cycle on the weekly chart
- It has currently broken out of major resistance levels, looking to continue its rally upwards
- Important resistance zones to keep an eye on are: $490, $620, and $800
- Important support zones to keep an eye on are: $470, $440, and $355
- Based on market cycles, as Bitcoin’s rally tops out and prices start consolidating, we should see capital flow into altcoins such as Ethereum
- Especially with Eth 2.0, an event in which the shift from proof of work to proof of state takes place, we could expect bullish news to drive prices upwards.
Conclusion
In summary, understanding general market cycles and investors’ sentiment is extremely important. Possessing the mental fortitude to buy when others are selling is also an important feat that an investor/trader should possess to succeed.
If you like this analysis, please make sure to like the post, and follow for more quality content!
I would also appreciate it if you could leave a comment below with some original insight.
Surf the waves of investor emotionsThere all all these stages, 14 in total, but this is too detailled. Good to know and try to guess but no one is going to get them right.
It is better and more accurate to see the market in 4 cycles, or 6 if we separate the top & bottom.
Market participants go through those emotions every time, with stocks, gold, crypto.
Speculation in currencies and commodities actually serves a purpose, I would not describe market movements the same way (except precious metals).
Let me describe every emotion, starting with a trending bull market:
1-
Optimism: The market is clearly in a bull market. Investors think the market is likely to continue higher.
Excitement: As more investors notice the uptrend, it keeps going up, probably faster. Investors get positive confirmation bias & expect more gains.
Thrill: Every one is a pro and they start making big calls, stop acting reserved/respectfully. Bulls start to celebrate. Bears are disgusted.
2-
Euphoria: Day traders & Mainstreet are fully invested. Forums & investing sites get record new accounts. Everyone is a genius calling for the moon.
3-
Denial: "It's ok we need to cool off". Investors start calling themselves long term investors that do not care about noise.
Anxiety: Bagholders, which is the right description by now, start to really worry. The price is not going higher, the "pullback" lasted long.
Fear: The price starts to go down, losses accelerate. Bears start saying "told you so" and bagholders get triggered very easilly.
4-
Desperation: "Pff I hope you're happy". Baggies finally start to call it a bear market. Bulls see no light at the end of the tunnel.
Panic: Bulls that saw light at the end of the tunnel realize it was a freight train. Losses start getting felt. Fund clients harass PMS.
Capitulation: Gordon Brown, head of Her Majesty's Treasury, "rebalances" and sells the bottom. Bulls cannot take it anymore.
5-
Depression: hopelessness - despair - nooses. Bears are empowered, forgetting they are permabears. A few will feel regret and buy at euphoria.
6-
Skepticism: Investors gave up trying to time the market. They got slapped many times and are now cautious. Bad time for any short term strategies.
Hope: They allow themselves to think the worse might be over, and day dream about new highs, but still very reluctant to buy (10/10 logic).
Relief: Many investors are back in the green, or around breakeven, and the "scary prices" are now far behind. The pain is over they can breathe.
A few practical examples
People are calling the top on tech stocks and calling it euphoria. It is BIG euphoria, not small 1/14 euphoria yet, prob.
Once we go higher, when the REAL crash begins, gamblers will go "last time they said", "I held the dip in the second half of 2020 every one was calling the crash", and so on. The clowns such as "captain of the ship" Dave Portnoy will get all these confirmation bias, he will probably end up rekt in the end.
At this point the stock market has become a ponzi scheme. Grandma and 20 year olds will hear that some random idiot with no experience got rich, so hey they can do it too, and every ignorant beginner will join and be euphoric for a few weeks, then depressed for a few months.
Late buyers will think Portnoy is an "OG" and the new Warren Buffet, I will point out his flaws and laugh at the "master the legend", I will be mocked and his fanboys will flame me, call me jealous, "why attack him? I made lots of money thanks to him".
And then I will be proven right as always, and the "OGS" will vanish away.
EVERY.
SINGLE.
TIME.
I'll try some small buys on the way up, short sell at 20k and skrekt every one as usual. Not sure with these annoying US tax rules.
Some other ones than stocks. Already have one for BTC so no point making it again
You sort of always find more or less the same thing.
In Forex this does not happen the same, I have my own dynamic ever changing way to divide market cycles, does not always work, nice when it does.
Gold is a bit of both world. Depends the TF.
Bouncing from a level to another
This is how I see it for forex, 80% of the time just stay away but who cares, there are plenty of pairs and you can also watch a secondary asset class (commodities are the most similar thing).
And 20% of the time be picky, go for the good stuff. Not that complicated. Seems silly to be zooming in intensly. Days to weeks holding periods is considered short term. I do short to very short term already, but compared to the average retail trader I'm like a dinosaur that holds forever.
It is just ridiculous. There is no supply and demand laws it's all noise. What do they think they are? Manual quants? Don't most quants trade stocks? Aren't most professional fx "day traders" just bankers with insider info that cheat and scam retail of their savings? Legally...
I crack up imagine the average week end gambler with his chart full of ridiculous indicators on a 5 minutes time frame with huge spreads in some choppy random market try so hard to find something why oh why?
The goal clearly is not money. So what is it? A challenge? Sure might find something. And I might get a stronger arm if I keep hitting my nuts with a hammer. "Well if it works for you".
The goal is actually money. Ridiculous. That there are so many jokers that think they will make MORE money, not LESS. Like they'll make 1% a day gambling on noise.
I find the idea of day trading absolutely repulsive: waking up at 7, drinking his little coffee, looking at his little charts, taking some gamble at a huge cost, then getting out pumpus interuptus closing everything at 4 pm or something while the market is still active and just going to watch tv and proud of his day patting himself on the back totally oblivious of how stupid he looks, a sheep that got brainwashed by brokers. Beurk.
Day traders equivalent to lifting are crossfitters with their little tight green and yellow outfits, elastic bands around the head and arms and legs, little crossfit water bottle, and little 2 kg pink or green or blue dumbbells, training their injuries, lifting their little weights, making sure they stop before failure wouldn't want to hurt yourself princess. I want to throw up.
Day traders are to Forex what Slipknot is to technical death metal fans.
Lmao just hunting for some silly pattern they read somewhere and of course didn't bother to backtest because nah that would be too much hard work.
Calling themselves speculators because they have several screens 🤢
And you can't even mock them because by the time you say "haha told you" they already blew up and quit.
This isn't stupid?
A big watchlist = ignore 80% of the lesser PA. Pick only the juiciest berries.
There isn't much to it. Looking at the random noise is the best way to get lost.
It's like chess. Simple rules. But then it takes alot to be a master.
Ye that's how I see currencies.
I divide it in 3:
- "Skepticism": 85% of the time. Not good enough for me. Not just trend following, even other strategies. Especially counter trend.
- Optimism: 14% of the time. Trend following but also anything else. When most pros are watching. Will buy falling knives, not sideways knives.
- Weeee: 1% of the time. Quick. Less than 24 hours.
Psychology of a Market Cycle - Where are we in the cycle?Psychology of a Market Cycle - Where are we in the cycle?
This tutorial is related with "Trading Psychology - Fear & Greed Index" study
Before proceeding with the question "where", let's first have a quick look at "What is market psychology?"
Market psychology is the idea that the movements of a market reflect the emotional state of its participants. It is one of the main topics of behavioral economics - an interdisciplinary field that investigates the various factors that precede economic decisions. Many believe that emotions are the main driving force behind the shifts of financial markets and that the overall fluctuating investor sentiment is what creates the so-called psychological market cycles - which is also dynamic.
Stages of Investor Emotions:
*Optimism – A positive outlook encourages us about the future, leading us to buy stocks.
*Excitement – Having seen some of our initial ideas work, we begin considering what our market success could allow us to accomplish.
*Thrill – At this point we investors cannot believe our success and begin to comment on how smart we are.
*Euphoria – This marks the point of maximum financial risk. Having seen every decision result in quick, easy profits, we begin to ignore risk and expect every trade to become profitable.
*Anxiety – For the first time the market moves against us. Having never stared at unrealized losses, we tell ourselves we are long-term investors and that all our ideas will eventually work.
*Denial – When markets have not rebounded, yet we do not know how to respond, we begin denying either that we made poor choices or that things will not improve shortly.
*Fear – The market realities become confusing. We believe the stocks we own will never move in our favor.
*Desperation – Not knowing how to act, we grasp at any idea that will allow us to get back to breakeven.
*Panic – Having exhausted all ideas, we are at a loss for what to do next.
*Capitulation – Deciding our portfolio will never increase again, we sell all our stocks to avoid any future losses.
*Despondency – After exiting the markets we do not want to buy stocks ever again. This often marks the moment of greatest financial opportunity.
*Depression – Not knowing how we could be so foolish, we are left trying to understand our actions.
*Hope – Eventually we return to the realization that markets move in cycles, and we begin looking for our next opportunity.
*Relief – Having bought a stock that turned profitable, we renew our faith that there is a future in investing.
It's hard to predict with certainty where we exactly are in the market cycle, we can only make an educated guess as to the rough stage based on data available. And here comes the study "Trading Psychology - Fear & Greed Index"
Factors taken into account in this study include:
1-Price Momentum : Price Divergence/Convergence versus its Slow Moving Average
2-Strenght : Rate of Return ( RoR ) also called Return on Investment ( ROI ) is a performance measure used to evaluate the efficiency of an investment, net gain or loss of an investment over a specified time period, the rate of change in price movement over a period of time to help investors determine the strength
3-Money Flow : Chaikin Money Flow ( CMF ) is a technical analysis indicator used to measure Money Flow Volume over a set period of time. CMF can be used as a way to further quantify changes in buying and selling pressure and can help to anticipate future changes and therefore trading opportunities. CMF calculations is based on Accumulation/Distribution
4-Market Volatility : CBOE Volatility Index ( VIX ), the Volatility Index, or VIX , is a real-time market index that represents the market's expectation of 30-day forward-looking volatility. Derived from the price inputs of the S&P 500 index options, it provides a measure of market risk and investors' sentiments. It is also known by other names like "Fear Gauge" or "Fear Index." Investors, research analysts and portfolio managers look to VIX values as a way to measure market risk, fear and stress before they take investment decisions
5-Safe Haven Demand: in this study GOLD demand is assumed
What to look for:
*Fear and Greed Index as explained above,
*Divergencies
Tool tip of the label displayed provides details of references
Conclusion:
As investors, we always get caught up in the day to day price movements, and lose sight of the bigger picture. The biggest crashes happen not when investors are cautious and fearful, it's when they're euphoric and expecting financial instruments to continue going higher. So as we continue investing, don’t forget to stop and ask yourself, where in the chart do you think we are right now? The Market Psychology Cycle shines light on how emotions evolve, fear and greed index can come in handy, provided that it is not the only tool used to make investment decisions. It is easy to look back at market cycles and recognize how the overall psychology changed. Analyzing previous data makes it obvious what actions and decisions would have been the most profitable. However, it is much harder to understand how the market is changing as it goes - and even harder to predict what comes next. Many investors use technical analysis (TA) to attempt to anticipate where the market is likely to go. Investors are advised to keep tabs on fear for potential buying the dips opportunities and view periods of greed as a potential indicator that financial instruments might be overvalued.
Warren Buffett's quote, buy when others are fearful, and sell when others are greedy
Dow TheoryCharles H. Dow (with Edward Jones and Charles Bergstresser) founded the Dow Jones & Company Inc. and developped the Dow Jones Industrial Average (the big new thing back then were big industries, now it is big tech giants Apple Amazon Google Facebook... Next is going to be renewables and biotech nah just kidding next is a huge recession and WW3 and the end of modern civilisation too late to save the world).
Dow created a theory that he descrobed in editorials in the Wall Street Journal (which he dounded):
1. The market prices everything. Whether the participants know it or not. Even future events are priced in in the form of risk.
2. There are 3 kinds of market trends. Primary trends 1 year or more (bull or bear markets of different magnitude, consolidation). Secondary trends are pullbacks in a bull market and rallies (sharp ones) in a bear market. Last kind of trend < 3 weeks is basically noise. (Personal remark: for currencies & commodities this is different imo. For the stock market this is valid and has been for centuries)
3. Primary trends have three phases. Accumulation, public participation, excess phase in a bull market. In a bear market distribution, public participation, and panic (or despair) are the 3 phases. Check Elliot Wave theory too.
4. Indices must confirm each other. Dow used the DJIA and DJTA (transportation) indices. Now look at well the 3 USA ones and the other continents too...
5. Volume must confirm the trend. Low volume indicates a weakness in the trend. It should go up as price is going up.
6. The trend stays the primary trend until there is a CLEAR reversal.
(Tell that to FOMO moonboys)
Let's look at exemples of market cycles.
2012-2015:
2017-2021 on the linear chart:
All time, several ways to see it:
2018-2019:
Best to just look at examples:
Looking at volume... It's really not clear. The rule needs to be removed or changed.
With Bitcoin in the excess phase we clearly saw an explosion, and then decline. And that was the top.
Each market works differently but these cycles are seen everywhere.
I wanted to look at the new one, Bitcoin. Let's look at a few other ones.
Sugar ==>
Dow Jones ==>
Gold ==>
Copper ==>
EuroDollar ==>
Tesla ==>
Movie pass (LOL) ==>
Rektcoin ==>
So what is the secret?Not seeing anything to trade right now, so I am just chilling, and posting stuff here. I am following 2 trading rules at once (do not overtrade & take breaks to relax).
The best exceptional individuals dump on the early pros and savvy investors that dump on the institutions that dump on the various funds that dump on the twitter shills that dump on the baggies that dump on the best exceptional individuals that...
Gosh, if we could only shift it all by one the joe "macdonalds" macbaggy could actually make it. So close. Yet so far.
The secret? Not chasing every single move like a coke addicted chimpanzee. Choose the select few you KNOW are exceptional opportunities, and let the stuck struggling tryhards laugh at you for missing out.
Let the FOMO crew laugh at you for "missing out" and "being so wrong about the trend", smile when you dump on them for the 10th time in a row and they start being angry and calling you mean "what did we do to you?". So I suppose you could say here to emotion is important. If you start whining because the general public and low tier shitfunds make fun of you you will NEVER be able to do this.
Also, just having common sense and not - well, being a coke addicted chimpanzee that gets excited or panics.
Facts matter. You get in for a reason. You get out for a reason.
I will list 15 of the top rules of Paul Tudor Jones, I agree with most of them, well all of those here (just that number 1 does not apply to most of us):
I find it very interesting that Bitcoin "traders" as in "not gamblers" have the exact opposite rules. They are very educational.
Let me show you:
They are just so bad. Amazing. Like they try to be as awful as possible. And they even manage to lose by trying so hard to catch bottoms like the top traders.
They are even worse than "general public". This is why I love them so much, so educational. Just do the exact opposite of what they do.
And you do not need to be the 1 in a million.
Even the "various funds" make money. Sometimes they blow up too, so the rule "cut your losers" has no room for errors.
Why I am accumulating Ostrich feathers at these cheap prices"Ostrich feathers took off in a big way in the 1880s. ‘A well-dressed woman nowadays is as fluffy as a downy bird fresh from the nest’; ‘If you would be fashionable this winter, you will be beplumed.’ Soaring international demand encouraged South African farmers to rear more birds and by 1913 the ostrich population of Little Karoo (the region at the heart of feather mania) grew from practically nil to 776,000.
South African farmers and feather merchants became extremely wealthy on the back of the trade and started building ostentatious feather mansions which boasted ‘panelled walls, tiled bathrooms, hand-painted friezes; the finest mahogany, walnut, and oak furniture... gilt concave mirrors, silver and Sheffield plate, the best Irish linen.’
At the market’s height in 1913, farmers were expanding, and brokers and investors were stockpiling large quantities of feathers in anticipation of even higher prices. Many in the trade were utterly convinced that the profits would keep rolling in, for feathers, like diamonds, were an ‘investment for life’, and in 1911 the world’s only ostrich professor confidently stated that ostrich farming would be a permanent feature of South African farming.
Three years later, however, the feather market began a precipitous and permanent decline. By late 1914, changing fashions, growing concerns over animal cruelty and conservation and the advent of the motor car, which rendered elaborate headgear impractical, all spelt the end for feather mania. The crash resulted in great hardship for South Africa’s feather farmers and merchants.
Scores of farmers committed suicide (weak hands) rather than face life without their farms. Merchants’ feather mansions were auctioned off for the price of their windows and doors – one merchant even forced his wife to sell her oven door to pay off his debts. Ostrich carcasses littered the South African landscape because farmers could not afford the birds’ feed."
Copied from the internet.
People say accumulating Ostrich feather is stupid and their fundamental value is not as high as I would think, but they do not understand the new world, it is not the way it used to be anymore.
Ford astonished the world in 1914 by offering a $5 per day wage ($130 today), which more than doubled the rate of most of his workers.
The world is changing and new demands are arising. With mass production this opens so many possibilities. So many innovations are being made.
The bubble popped a hundred years ago, so a new bull market is imminent.
The longer this bear market lasts, the closer we get to the bull market.
1 Feather = 1 Feather come at me.
On the really long term Ostrich feathers are in a bullish trend. What do you mean inflation?
They might be slightly below their 1913 price, but I am still up 5000% compared to 1250.
People are calling me stupid for accumulating Ostrich Feathers they laugh and throw stones at me but they simply do not understand the powerful new world economy.
Besides, back in 1905 when the price of Feather dropped they called hoarding it incredibly stupid, but those that did saw massive returns in 1913 so where is your argument now?
I am just waiting for Feather to pop above the price trendline and then we are really going to get going.
Return to the mean BTW:
Of course the countless examples that just die disappear and are not on trading view.
Commodities do not just disappear, so I can use that as example. Good luck finding a feather chart.
Cryptoers are going to look very smart in 2115.