Another Very Important Bear Market Lesson

The Learning Never Ends

If you endeavor to continue learning and growing, you have to realize that your current understanding is limited. It may well be extremely thorough and in-depth but that definitely doesn’t imply that it is complete. I don’t actually believe in an “arrival”. No matter how good you are at your particular skill, there is always room for improvement.

Remaining teachable and humble is vital for development and progress of any kind, and it’s no different in the Crypto world. I know that many investors were not keen on my “neverending bearish” outlook. Avoiding the bear market rallies (bull traps) was an important move in maintaining and preserving capital. Amazing buying opportunities are just around the corner.

However, the preservation of capital is only one of the wisdoms behind this patient approach. Things are seldom one-dimensional. I have learned over the years that multi-faceted strategies are the most effective. Why? Because they factor in multiple outcomes, scenarios, and dynamics.

There’s More To It

Preserving capital in a bear market is key. It’s the first course of action. However, it doesn’t end there. Another very important reason to avoid a premature entry is “survival”. You have to allow a bear market to take its course. This will inevitably see the demise of many projects. It is important to note that the casualty cases of this particular bear market have all been what many would have considered strong projects.

Not that long ago Alex Mashinsky was a “hero”, Do Kwon was a “genius”, and SBF was a talented “white knight”. What makes your particular project of choice untouchable? Investors who scaled out into cash would have missed the carnage by default. This is very important to understand and appropriate.

Not only are you protecting your capital but you are delaying entry until the dust settles. You may think it doesn’t matter if the price goes lower, but that’s just the best-case scenario. What if the project doesn’t survive? Few consider this reality. However, Solana and others might be “getting through” to a few “stiff necks”. Choosing not to repeat previous mistakes is imperative to advancing as an investor or trader.

It’s always good to have other interests, both within the Crypto world and externally. The market will often provide seasons that require abstinence. Refusing to adhere to these seasonal periods often results in a loss. Self-control needs to be appropriated from a position of patience. Good trading decisions come from a place of emptiness.

A busy and erratic lifestyle is not conducive to making good trading decisions. Patience, emptiness, and self-control work together in gaining an accurate and sound perspective. It is from such a position that truly successful traders make their moves. Nobody ever lost money missing a bottom. On the other hand over zealous investors often get wiped out entering a collapsing market prematurely.

Survival is not going to be enough either. Is your project up for 2023 and able to regain new highs in time? It is perhaps too early to say, which is why restraint and modest movements are often the best approaches. Once again, risk management is an essential part of this process.

Final Thoughts

It is definitely going to be interesting to see which projects eventually reach new highs and go on to convince the market of their value and resilience. The wise survive. Both FTX and Solana were behemoths. Power means very little in the hands of a fool. A wise approach will see the “small guy” survive, while the powerful are often drunk on their own delusions of grandeur, and as a result, make foolish decisions.

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