This entry is part 3 of 6 in the series Two Minute Crypto
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Please click the link to listen to the 17th episode of my weekly crypto podcast ‘Two Minute Crypto.’ These are intended to be short, single-topic ramblings on some aspect of the cryptosphere. Comments and critiques welcome.

https://itunes.apple.com/au/podcast/two-minute-crypto-planning-for-the-next-bull-run/id1441492450?i=1000425644277&mt=2

or

https://www.podbean.com/media/share/pb-x7gdi-a1adc0

Transcript:

Two Minute Crypto – Planning for the Next Bull Run

Welcome to two-minute crypto. Today I’d like to highlight the need for a well-defined plan in order to optimally benefit from the next bull run. So, of course, at this moment in time, planning how to manage gains on current under-performing investments during a bull run can seem like sheer folly. Our emotions tell us to fear the worst and retreat from crypto, but this is the last thing we should do.

Markets have cycles, this being the bear version. Certainly, some projects, indeed, many will fail, as in all asset classes and more-so at the early stages of the emergence of an asset class as with crypto. But many will also succeed and prosper, assuming we are invested in some of these eventual winners our task is the plan ahead and decide now how we will manage this success when it comes our way. For simplicity, I will personally call when a bull run when I observe a return to an uptrend on the monthly chart with a strong open and close above 10K a return of high market trade volume – arbitrary perhaps but that’s my take, at the moment.

In practical terms, let’s assume you hold 10 cryptos – 3 go to nothing, 3 stagnate and 4 take off. Great, but do you just ride the rocket until the bull run runs out of steam and possibly retraces all the way to previous lows or do you get off the freight train at some point?

Of course, you’ll say – I’ll get off but here’s the rub – in most cases, you won’t. Daily excitement as a portfolio accumulates value clouds judgment just as much as emotional angst over lost capital. You need a plan – a defined strategy for managing your investments. The details of that plan will vary by individual – some may wish to sell 10% of each crypto at a 10% gain on investment, others may sell to buy back in on a dip. Still, others will be looking for spectacular 10x returns. Each to their own, but the common thread is a plan – without it you will be carried along on the next price cycle and as sure as this bear market will run its course, so too will the next bull run. Draft your goals – write them down – stick them on a wall if you can and sit tight. Once drafted – revisit and revise them as you deem necessary as each iteration will likely sharpen your investment thesis.

Simple yes – but something many people will still fail to do.

Thanks for Listening


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Discussions

  1. Smitty

    Couldn’t have said it better. I don’t know if it’s the eagerness to take on risk, or the experience to KNOW that all things end, both good and bad. But yeah, now is the time to be planning. Not cowering under the table.

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  2. eosbattlewom

    Yeah – this is a biggie for me. And to be honest, I really have no plan. I’m a natural hodler, so I guess that’s it. But I really want to trade at least some of any success in crypto into a better work-life balance…

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    1. CryptosDecrypted Post author

      Maybe – set a goal for cashing out a certain amount of crypto at a set target – just so you catch some of the profits during the next bull run? Once the bull cycle runs its course you then have the opportunity to buy back in nice and low again with some money off the table for work-life.

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  3. Dukefish

    Another great 2 minutes pal, you are right having a plan to reap of the rise and falls of the markets is paramount.

    Keep it up am enjoying this series of yours!

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  4. Nicholas

    Most of the people think, if they hear the word: plan, it is something big and difficult, and hard to write.
    Damn, i have a simple A4 paper, and i write it again almost each two weeks 😀

    (0)

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