10 tips to prepare you for the bull market.

The two types of patience

Patience with a trade

Remaining patient is easier said than done. When I personally take a trade, I have already predefined my targets and my stop loss and I recommend you always go into a trade with a clear plan. In an ideal world, we set our alerts and forget about the trade whilst waiting for one of our predefined outcomes to hit. Easy, right?

Patience with the market

On a much broader scale, patience is also required with the general market structure. Unfortunately, pull backs are to be expected in a bull market as nothing goes up forever and these pull backs are actually a healthy sign. In the 2017 bull market, we actually seen Bitcoin retrace around 30–40% multiple times on it’s way to the top. It really is nothing to fear.

BTFD & HODL

The above leads nicely into our next point, Buy The F*cking Dip and Hold On for Dear Life. These two phrases were the meme’s of the bear market. Holding was not a good strategy as many coins retraced as much as -99%. Many people including myself still hold some of these bags as they sit in a wallet somewhere virtually worthless compared to what they once was.

Learn the basics of technical analysis

Regardless of your strategy, you may want to consider learning the basics of technical analysis (TA). TA can be as simple or as complex as you wish to make it, but understanding the basics such as support and resistance may help you maximise profits by giving you guidance on when to enter or exit a trade.

Fundamentals

Fundamental analysis (or FA) gets talked about a lot in crypto. Understanding what these projects are working on or what they have in the pipeline can be a huge advantage, especially in a bull market. Exciting news and events in a projects roadmap can build up a lot of hype which will usually reflect in the value of a project.

Tokenomics

The most common things I hear from new people joining the space is how such a coin is going to be the next Bitcoin or how ‘cheap’ a coin is. These people simply do not understand basic tokenomics such as circulating supply, total supply and marketcap.

Risk management

When things are going well, it’s very easy to become euphoric and feel invincible. You feel like you’re going to win every trade you take and because of this, you take a bigger position or even go all in. As mentioned earlier, the market will still have pull backs, so don’t think your position is bullet proof.

Be careful on Twitter

When the market is bullish, Twitter can be a dangerous place. Everybody is flexing their gains and this can often have a negative impact on someone who isn’t experiencing them same gains. I think it’s important to remember the first point in this article, that we should remain patient and not dive into a position that has already pumped. Secondly, be aware of the larpers. Many of the traders flexing these gains probably didn’t even take a position, but still tweet about it to fuel their ego. Remember: Larping doesn’t pay the bills.

King of Larping. Be careful!

Taking profits & greed

It’s very easy to get greedy in a bull market. Them 20% gains that were once great in the bear market are not good enough anymore as we see coins moving 2x, 5x, 10x and more. However, all you need to do is have a few conversations from people who didn’t sell any of their holdings in late 2017/early 2018 to know that taking profits is a good idea.

Moonbags

A moonbag is keeping a small percentage of a position open (often 5–10%) despite all of your targets being hit. This is an effective strategy in a bull market as coins can often keep running way after your targets have been reached. Keeping that 5–10% means that you can still reap some rewards if the coin continues to moon way past your predefined targets.

Price discovery

Many coins will inevitably break all time highs and go into price discovery during a bull market. Although this is a great situation to find yourself in, it often makes it difficult to set targets as there is no previous price action to use as a guide.

Conclusion

What I have addressed is just ten things that I will be focusing on myself as we approach the next bull market. I’m sure there are many more factors to consider and not all of the above will be applicable to you. I do believe this article will help many of you adapt to a more controlled and consistent strategy in the bull market rather than hoping for the best and winging it.

Special shout outs:

Educational YouTube content: Crypto Cred & Koroush AK.

Thanks for reading, Posty.

Disclaimer

  • This is in no way professional or financial advice and should only be used for entertainment purpose only.
  • None of the resources I have recommended have sponsored this article. These are my genuine recommendations.

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