10 of my friends made $100k+ last bull run.
9 of them ended it with almost $0 (including me).
Most people will end this bull market with $0.
They will make same mistakes that will cost them all profits.
Here're 15 mistakes to AVOID in bull markets š§µš
ā® I will reveal a secret that many are not even aware of - most of you will end this bull market with $0
ā§ You will make preventable mistakes that cost life-changing wealth, and that's normal, everyone does it
ā§ But you have a chance to avoid them by reading this thread:
ā® Framework is everything
ā§ Most of us are here to make as much money as possible
ā§ But few truly understand what they are doing
ā§ Selling a blue chip to invest in a shitcoin or adding to a margin call, etc
But here's how it should look:
ā® You should have 3 portfolios:
1) Long-term with mostly blue chips, $BTC, and $ETH that are held on a cold wallet
2) Mid-term with alts from the current narratives of the cycle
3) Short-term, degen/gambling plays
Profits should rotate to strong and safe projects
ā® Nothing repeats twice in the same way
ā§ There are really cycles in crypto, but that doesnāt mean you can repeat all the same actions and earn money
ā§ Cycles are cyclical but play out differently, so stay flexible
The only thing that is always the same is human psychology
ā® Fundamentals over Pumpamentals
A bull market is all about speculations, so donāt overdo the analysis
Look for projects that can create hype, have an interesting story, and where people understand what theyāre doing
Too much reliance on only fundamentals will get you wrecked
ā® TP/SL
ā§ The most common issue is never taking profits (TP) and setting stop-losses (SL)
ā§ And it mostly happens because we donāt have a specific plan before purchasing a token and just go with the flow
So, what should you do before investing:
ā® Before investing, define the goal of your investment and what you are doing:
ā¢ Degen/gamble
ā¢ Mid-term/narrative
ā¢ Solid/long-term
Based on this, you will be able to set TP and SL accordingly
ā® Riding Narratives
ā§ The key to success in crypto is finding the narrative early
ā§ And you need to ride them as hard as possible
ā§ Find the trend, see the potential, invest, and take profits
ā® Too diversified/under diversified
ā§ Diversification is necessary for a slightly larger portfolio
ā§ But over- or under-diversification will lead to losing everything
ā§ You can't keep up with that many projects, so focus on 5-10 projects
ā® Rotating Every Second
ā§ Narratives last quite a long time in a bull market, from 3 to even 10 months
ā§ So, don't rotate yourself out of profits
ā§ Wait for the right moment for both investing and taking profits
Like if the trend appears in X too much, time to take profit
ā® Cognitive Biases
ā§ One of the biggest mistakes for most people, including more experienced ones in crypto, is that they succumb to cognitive biases
To avoid this, you need to know them
There are too many, so Iām just leaving a thread with 20
ā® Fading Momentum
ā§ Letās say the token you didn't invest in has given a 100% increase
ā§ Now you think itās too expensive, and the price might give another 5x
ā§ Remember, this is a bull market, and price is a narrative
So donāt hesitate too much
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