š„THE MARKET IS NOT RATIONALš„
By: @BullishBanter
In a bull market, irrationality takes over. What do I mean by that? When I say the market is becoming irrational, I mean the strange and illogical behavior that is emerging. Here are some examples to illustrate this.
Consider the previous bull market and NFT craze. Digital images of monkeys sell in the millions despite having no intrinsic value. Shitcoin jumped x100 in just a few days, despite not having a strong foundation.
In the current bull market, we are seeing early signs of this irrationality. Many people pour money into silly memecoins that have no real value. What is most worrying is the widespread bullish sentiment towards this memecoin, with some individuals investing their entire capital and now facing significant losses.
Several people sent me private messages on Twitter, showing me their portfolios and admitting that I was right. They realize that following crypto influencers who hype trending cryptos will bring inevitable losses.
This is what I mean by market irrationality: unreasonable actions and unreasonable investments. Luckily, a market crash occurred to bring these inexperienced investors back to reality. This failure served as a warning, making them rethink their strategy. This is a tough lesson, but one that is often necessary for real learning.
Don't be part of this irrational group. Act rationally, prioritizing preservation of your capital over quick profits.
I hope these insights are relatable and help you avoid costly mistakes. Thank you for reading. If you found this useful, please like, comment, share and subscribe. Your support, including financial tips, is greatly appreciated and allows me to continue providing valuable market insight.
