Caleb & Brown

February 20, 2020  ·  5 min

How to Profit from a Bear Market?

How to Profit from a Bear Market?

Our Senior Crypto Broker, Jeff Zylstra has compiled a comprehensive market analysis report with a personal example. Jeff has over 5 years of experience as a broker and been trading cryptocurrency since 2014.December 2017/January 2018 periods were, right at the 'Point of Maximum Financial Risk' at the moment from my analysis, it appears we are around capitulation and despondency area, very close to the 'Point of Maximum Financial Opportunity'. Positioning is the most important thing in this market, giving yourself the best possible chance to maximize the effectiveness of your capital by leveraging the market cycle is extremely important for a long-term investment strategy. It is a Rinse and Repeat scenario, example:

  • When people are greedy, you are being fearful and selling into the euphoria.
  • When people are being fearful and selling out of panic, desperation and depression.

These are the optimal times to be a buyer! Here is a look at a Bitcoin daily price chart from this year's market cycle so far. How many similarities do you see comparing the market cycles?

If you happened to have bought during peak thrill and euphoria I would stop worrying all the time, stop watching the price every day because guess what? You are an investor, not a TRADER. Traders care about the day-to-day, week-to-week price fluctuations.The nature of this very market is volatile, +5% -10% is just part of the everyday background noise. Investors are playing the long game, and HOLDING has been proven by many traders to be a solid strategy. You just got to have the strength to keep your emotions out of the game. When I first bought Ethereum at $26 I felt the same feelings of anxiety and panic you felt when I saw the price move all the way down to $6.I was questioning my investment, my strategy and the market. I felt really depressed at this stage. I was very lucky that I drowned out the negative thoughts and emotions and held strong.This market is an amazing tool for transferring wealth from the IMPATIENT to the PATIENT. BE PATIENT!

****Moral of the story is, Ethereum hit an all-time high of $1389.00 USD ($1891.26 AUD). I hit an average of 100x my original investment in this trade, looking back I don't know what I was worried about. There will be no reward without risk, no glory without suffering. If you are looking for a position, a friendly chat or further information on market cycles reach out to me. Jeff Zylstra is available as your broker to guide you through this jungle. Call Jeff on +61 413 342 200 or Contact Us to discuss further.

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