Author: Stock Market & Trading Association
Translation: Blockchain in Vernacular
The cryptocurrency bull run has arrived, bringing with it great opportunity, but also dizzying confusion. The internet is full of “experts” shouting about the latest coin surges and incredible gains. It’s easy to get carried away by the hype, but the truth is: the biggest danger at this moment is not missing out, but getting lost.
Bull markets are exciting, full of potential, and potentially life-changing. But they also come with high risk—greed, hype, and noisy information can quickly derail even the most experienced investors. If you want to succeed in the long run, the key is to learn to stay calm and avoid the pitfalls that trip up so many people.
1. Why is noise so dangerous?
Let’s break it down: Bull markets attract opportunity as well as chaos. Suddenly, everyone is an “expert.” Your social media feeds are flooded with posts showing off their latest gains, influencers are promoting the so-called “next big thing,” and YouTube is full of videos promising “10x returns.”
This environment can easily lead to a dangerous cycle:
1) Fear of missing out (FOMO): When you see others making a lot of money, you will feel that you are left behind.
2) Over-trading: Frequently switching between currencies, chasing every surge, and even abandoning one’s own trading strategy.
3) Emotional decision making: Letting hype and greed overwhelm logic and analysis, leading to errors in judgement.
Remember, those who shout the loudest often have ulterior motives. Many of them are simply pushing up their own positions, taking advantage of your FOMO, or selling you a pipe dream.
2. How to stay focused in a bull market
To navigate the chaos, you need a plan—and the discipline to follow it. Here are four key strategies to help you stay calm and avoid pitfalls:
1) Question the “experts”
Where are all these so-called experts in the bear market? True expertise is not only revealed in good times, but is also developed in tough times.
Ask yourself: Are these people consistently reliable, or are they just opportunists?
Look for traders and analysts who have a proven track record and can share thoughtful, logical insights.
Example: A true expert might talk about a great long-term project like Ethereum or Bitcoin when the price is low, rather than waiting until the price of the coin skyrocketed 200% before touting it.
2) Beware of the hype of “hindsight”
It’s easy to say “I told you so!” after the fact, but the problem is that such statements are almost never accompanied by hard evidence.
Follow those who can share predictions and insights in real time, rather than those who only jump out after a big move has passed.
Be wary of featured screenshots or exaggerated claims of success.
Tip: Look for people who are transparent about their analytical process and don’t just brag about their results.
3) Stay realistic
Bull markets can create fortunes, but bear markets can destroy them. Greed can destroy even the most experienced investors.
Set realistic goals: Not every trade needs to be a hit, small but steady gains can add up over time.
Adhere to your risk tolerance: Never invest more than you can afford to lose.
Example: Many people made huge profits in the last bull market, only to plow everything back into the market and lose everything when the market turns. Don't let that happen to you.
4) Understand the risks
No one - I emphasize, no one - can accurately predict this market. Cryptocurrency is essentially a speculative market.
Always do your own research (DYOR) before investing in any project.
Understand the risks of each asset, from mainstream coins like Bitcoin to more volatile altcoins.
Pro Tip: Reduce your risk by diversifying your investments and don’t put all your money into a single asset or sector.
3. Psychology in a bull market
Let's talk about the psychological aspect of trading. A bull market not only tests your strategy, but also your mentality.
Emotional peaks: Watching your portfolio grow can be exciting, but it’s crucial to stay calm.
Fear of Missing Out (FOMO): Resist the urge to chase every spike and stick to your plan.
Importance of Patience: Remember, wealth is not built overnight, it is a marathon, not a sprint.
Reflection: Ask yourself, are you making decisions based on logic or emotion? Are you sticking to your plan or are you being carried away by the noise around you?
4. Develop a “marathon mentality”
The crypto market is full of excitement, but success comes from long-term planning.
Focus on fundamentals: Invest in projects with strong teams, clear application scenarios, and long-term growth potential.
Learn from the past: Study market cycles and understand how bull and bear markets work.
Example: Bitcoin and Ethereum did not get to where they are today overnight, but rather through years of ups and downs. Those who held on amid the market noise ultimately reaped the biggest rewards.
5. Immediate Actions
Here’s how you can apply these principles right now:
1) Revisit your plan: Make sure your strategy is aligned with your goals and risk tolerance.
2) Reduce distractions: Unfollow accounts that create unnecessary noise or hype.
3) Track your progress: Keep a trading journal, review your decisions and learn from your mistakes.
4) Continuous Learning: Keep learning about the market through books, courses and reliable resources.
6. Summary
This bull market could be the opportunity of a lifetime, but only if you stay focused and disciplined. Forget the noise, forget the "experts," and stick to a plan that revolves around you and your long-term success.
The key to winning in a bull market is not to chase every surge, nor to try to hit the right spot, but to stay calm, focused, and consistent. Protect your money, your mentality, and your future.
Let’s ride the waves smartly!
