The Mindset You Need in a Bull Market

So I believe in bull markets, the biggest problem that you need to face to actually take money off the table and change your life is psychology. Psychology in bull markets is the hardest thing to actually get right. People talk about sell targets, when to sell strategies, macro cycles, getting in and out, tax, all this stuff, all of it is super important. But ultimately, at the end of the day, it is you against your mind. Because at the peak of a bull market, when it's complete euphoria, when it's complete chaos and you're making tens of thousands, hundreds of thousands, maybe millions of dollars in days, you primarily as a human being, are not going to want to sell that because you are making so much money.

So quickly that the idea of selling is going to feel like you're robbing yourself. But I can tell you right now from experience that at that point, when things are complete chaos, complete euphoria, when you're making so much money, you think it's never going to go down. And you're telling your parents, you're telling your friends, your wife, you're looking at watches, you're looking at cars, guys, that is the time to sell.

Back in 2018, I invested really heavily in the metaverse. Before the metaverse was really a thing, before Facebook would rename to Meta, I was able to get into 10, 20, 30 mil market cap metaverse projects that ultimately ran to 400, 500, 600, $700 million market cap. In the peak of the bull market, I was able to make 30, 40, 50x. And I remember at the time thinking that this is never going to go down. You know, that it's complete chaos, it's complete euphoria. And my mind was starting to play these tricks on me, thinking that this is going to last forever, like, why would I ever sell this? Crypto is going to be here. Metaverse is going to be the thing. But it was the experience that I've had in crypto, the strategies that I've had, the accountability and the psychology that I've worked on myself. To know that in those periods of time, you need to go against emotion. Emotion is the thing that's going to hold you back. Guys like emotion, euphoria, the feeling of winning. It's an addictive feeling. It's why people gamble. It's why people are addicted to dopamine. It's why people are addicted to their phone. It's this feeling of winning and. And that it's chemicals in your mind that are addictive, that literally it doesn't want you to stop that emotion. And by you selling, you're cutting that off. And that's why 90% of people lose in crypto, because it's too much for them to handle. They're making too much money. They never think it's going to go down. But this is how bull markets work, guys. We can see this on the on chain data. I do this every day. We've got a team of analysts work on these markets 24 7. And I've been doing this for seven years. You can literally see who wins and who loses in these markets. And ultimately, at the end of the day, 90% of retail investors lose because they buy at the wrong time and they sell at the wrong time. We've seen this over the last couple of weeks as bitcoin's been running up. Our business explodes when markets go up, because people want to learn about crypto. When it goes down and there's retracements, people don't want to get in. This comes back to psychology. When things are going up, people want to be a part of it. It's like for all of you, or some of you that have been in crypto for a long time, I mean, we've been screaming out to our friends and family to buy crypto for years. No one wants to buy when it's 20 or $30,000, though people do want to buy it when it's 70,000, when it's never been higher. Because this is the psychology of human beings. At the end of the day, markets are just human beings on one side of the screen or the other. Someone wants to buy, someone wants to sell. That's it. We're not in some big computer game. These are markets. So not only do you have to outsmart the other person on the other end of the screen, you've got to outsmart yourself, right? So this comes back down to psychology and understanding that you need to do the opposite of what your mind's thinking. It's the old age saying, Warren Buffett's famous quote, be fearful when people are greedy, and greedy when people are fearful. Now, you can do this in a way where you don't have to sell everything, get in and get out. People saying, oh, we're not going to sell until it gets 150,000 US guys. It's utter rubbish. Number one, no one knows how crazy this cycle will get to. No one has a crystal ball. Yes, there's metrics, yes, there's data, yes, there's projections, there's models, there's all these sorts of things, but no one knows and if anyone's telling you they know, they don't know. What we try and utilize is up to that information of sentiment data like things like exchange volumes, things like social media sentiment on chain analysis to see who's actually signing up, who's selling. And that gives us a really good indication because I tell you what for who makes the most money in these markets, it's not retail. It's those people that have been in these markets for a long time, OGs that have seen this movie before, people that have figured out their psychology and know that you don't need to time the market 100% of the time. Actually you don't need to time the market at all. What I try and use in a bull market is a laddering out strategy. I like to take chips off the table. So my short term strategy, I do have a large altcoin position and through those altcoins I'm ultimately trying to just outperform bitcoin. I want to hold Bitcoin for the rest of my life. I think it's going to be the asset that's going to outperform everything else on the planet. And I can grow my bitcoin portfolio by holding altcoins in the short term because ultimately that's where speculation takes over. And retail investors love to speculate narratives and speculation drives crypto. In the short term, the value of a project stays within a certain sort of growth trajectory, but price goes above and below that. So value is one thing, but the price of an asset is another. And that's where you can make money, right? You want to be buying when the price of something is below the value and you want to be selling something when the price is above the value. If you've made life changing amounts of money or the project you've invested in is just worth obscene amount of money, there is no harm in selling guys. Sell down some of that. What I like to do is take chips off the table, take 10%, take 20%, store that away, have a risk adjusted strategy. You don't need to compound everything and not sell until you hit a million dollars. That's bullshit guys. The market does not care about you. The market doesn't care how much money you have. In crypto. The market doesn't care if you've lost on trades or if you bought NFTs or that some mate told you to buy this thing and you got scammed. The market doesn't care. Alright, so what I like to do is as things are going up, as things are getting pretty Wild as we head into the later phase of this bull market is take chips off the table. Because guess what? At the end of a bull market the music stops and you don't want to be left holding the bag. In a bear market, Bitcoin outperforms 99% of every other asset in the market. By holding altcoins in a bear market, you're going to bleed like nothing else. So I like to ladder out, take chips off the table, but still have a large percentage of my altcoins as things go up because we don't know how crazy they're going to get. But I store that away into a shorter term portfolio, into like stables or into cash so I can ultimately keep my portfolio risk adjusted, achieve the short term goals that I have. And this comes back to your strategy. So many people, you know, only think about crypto, like timing the market. I have to get to, you know, this amount of portfolio size or I'm not selling until we get to this price. Like again, it's rubbish. Guys, what are you in crypto? To do what? Why are you in crypto? What are you trying to achieve at the end of the day? For me, last cycle it was to make enough money through crypto to sell down and build collective shift my business and I was able to do that tick. This time around I want to sell enough crypto to buy my mum that a home and start to diversify into other assets. I want to get into property, I want to get into shares. I'm 99% concentrated on crypto right now at the peak of this cycle I want to diversify and start to protect that wealth. You build wealth through concentration, you diversify to protect it. And that is my goal. At the end of this cycle I want to be financially free so I don't have to worry about money again and start to diversify. What is that thing for you? Is that to pay off your credit card? Is that to build your business? Is that to buy the Lambo? Is that to buy the Rolex? Is it to buy your mummy dad at home? What is that thing for you? Because at the end of the day, if you can achieve that thing that means the most to you, then you've won. It doesn't matter if you time the market or not, guys, like at the end of the day we're here living life and I don't want to get too philosophical, but I really mean this when if you don't have something in mind about what you're actually doing in crypto, it becomes even Harder to beat the psychology because you've got this made up number in your head or you don't even have a number, meaning you're just going to keep riding the portfolio all the way up. And it's why most people write it all the way down. Again, it's because they don't have a reason to sell. What's that reason to actually take money off the table. What are you actually trying to do? What's going to improve your life? What's going to make the people around you better? And that's ultimately what I believe crypto is all about. It's about giving power back to the people like you and I to make great financial returns and actually do something with. So I'd argue that that is more important and laddering out, taking chips off the table to risk adjust your portfolio. I think that is something that is an easy way to do it in a risk adjusted way. I always think about risk adjusted ways. You can make a lot of money in meme coins right now, no doubt about it. But it's super high risk, right? You tend to only hear the good stories, you don't tend to hear the bad ones. At the end of the day, a lot of these are just driven by speculation and narratives, which is why crypto is so exciting, because you make a lot of money really quickly. But again, the psychology of these people, you got to think guys like, there's a reason why most people that win the Powerball or Tatslotto end up homeless is because making that much money so quickly is not a part of the human psych. Like it's not a part of the human brain. It can't comprehend it. The human brain can't comprehend compounding growth. They can't comprehend making that much amount of money. And people that make that amount of money so quickly don't know, usually don't know how to protect it and preserve that. They end up gambling away, getting into drugs, doing all sorts of crazy stuff. So, you know, ultimately in the day, I'm not saying you don't buy meme coins, I'm saying that the psychology of making money is super important even outside of meme coins. Alright? So have that strategy, think about it in a way that's more logical and stay grounded. This bull market, don't get carried away by the FOMO and the hype and the craziness, you know, of this cycle. I think the way the cycle is playing out is so similar to the 2020 Bitcoin halving. You know, we've run up really quickly. Obviously this time we've got the ETF inflows, we've got institutional inflows, everything is super bullish. You know, the different entities are looking at crypto or bitcoin now as a risk off asset rather than a risk on asset. Like we've got the likes of Fidelity that are, you know, basically recommending 1 to 3% Bitcoin in a conservative or balanced portfolio, which has never been seen before. Like, you know, we've been screaming this for years now that bitcoin is a hedge against inflation, it's a hedge against the craziness of the world. It's diversified, limited supply asset, all these amazing properties, but no one's ever listened to us. But now it's actually happening. You know, fidelity recommending 1 to 3% bitcoin in a conservative portfolio. Like, oh my goodness, are you kidding me? Like, this is, this is what bitcoin was made for. And again, long term, I just want to be continuing to hold bitcoin long term I've got my goals, but 20, 30, 40 years, I think it's going to outperform everything. But in the short term you can ride the psychology, you can ride the narratives, the speculation of altcoins to rotate out. But again, the hardest thing, guys, is this, you need to beat this. If you can beat your brain in not going with it at the peak of this cycle and never selling, right? If you can beat that and actually take profits, you're going to win. And this is where most people lose, is they don't know how to control this. So I'm going to really urge you to get your strategy in order. Write it down, what are you trying to achieve? Yes, have some rough targets, but at the end of the day we've got to be flexible about our targets, guys, because markets, especially crypto, are so new data can give us somewhat of a prediction, forward thinking, but we're going to use data in the moment to figure that out. Write down what you're trying to achieve in your personal life. What are the goals you're trying to achieve in crypto? What would you do with the money if you could do that? And then how are you going to sell down? Are you going to ladder out? What are those things? Right? And even thinking about your portfolio now, think about it. I like to think about in a risk adjusted way going back the main coins. Yes, a lot of potential reward, but also just as high risk, right? I think right now the best risk to reward play is Ethereum. I just bought a large chunk of Ethereum using some of the cash I have available to me because I think Ethereum is the best risk to reward ratio play, meaning that I think it has the highest upside for the lowest amount of risk. Will it make as much as getting into a 20 million dollar meme coin? No, of course not. But I look at it as a risk adjusted way. I don't need to keep betting the farm on new altcoins or new meme coins every time. I like to have a simple strategy and go hard on coins that I believe are undervalued. I think Ethereum's undervalued. I'm seeing the BlackRock tokenized $100 million fund, the potential ETH ETF. I think ETH is just generally underperformed. And I think once we get to the bitcoin halving, the narrative is going to go back towards Ethereum. We're going to push towards post bitcoin halving area era and that's when money starts to flow from the big caps down. So we go into Ethereum, we go into altcoins and the money starts to flow down. And at the back end of a bull market, that's when things get super crazy for altcoins and also Ethereum. So I'm positioning myself for that. But everything's playing out very similar to 2020 Bitcoin halving. These pullbacks are for buying guys. It's so crazy to see how quickly things shift. People go ultra bullish to ultra bearish so quick whenever we have a pullback that's super normal. In fact, the last bull market we had 13 10% plus corrections. 13, right. We have a measly 15 to 20% deep dip and people are panic stations. These are for buying. Dips in bull markets are like unbelievable buying opportunities and as well continue to take advantage of that. I've got more cash on the sidelines. I'm willing to deploy in the next 30% pullback, which I fully expect will happen. So manage the psychology. Don't get caught into the influencers and the Twitters just pushing crap. Honestly, load up TikTok the other day and nearly vomited. Like the amount of noise and just nonsense that these people post online is just unbelievable. Stick to a simple strategy. Buy good fundamental assets. Yes, speculation can make you a lot of money, but understand that that only lasts a period of time. Speculation and narratives drive bull markets, but they ultimately don't preserve wealth. All right, so if you're going to try and make a lot of money through these meme coins or speculative assets. Go for it. But understand that they don't last forever. Actually, they don't last long at all. And two, most people don't know how to keep that wealth right? So think about that. Don't get too distracted with the craziness of this bull market. What you need to do, ultimately, what I do is keep it simple. Buy good assets, be convicted in those assets. You don't need to go chasing. You can't have every single coin. Again, psychology, guys. You can't have every single coin that goes up in a bull market. Just because an influencer talks about something doesn't mean you need to chase it back yourself. Stay patient. Beat this, and you're going to win this bull market. Hope that helps. Guys, please subscribe on my YouTube channel. If you like these videos, I'll keep coming to you. More than.