Most people will end this bull market with $0.
They'll make preventable mistakes that cost themselves life-changing wealth.
So here are 15 mistakes to AVOID in bull markets (and how to prevent them):
They'll make preventable mistakes that cost themselves life-changing wealth.
So here are 15 mistakes to AVOID in bull markets (and how to prevent them):
(make sure you bookmark the tweet above to save)
1. Not Taking Profits
No one cares about your ATH portfolio - what matters is what you KEEP at the end of the cycle.
Here's an example of a system:
(adjust to your own risk tolerances)
1. Not Taking Profits
No one cares about your ATH portfolio - what matters is what you KEEP at the end of the cycle.
Here's an example of a system:
(adjust to your own risk tolerances)
Tips:
β’ If you feel like a genius or are screenshotting your gains, it's time to take profits.
β’ Taking profits means taking them OFF THE TABLE into fiat, stables, or long-term coins - not putting them into more high-risk projects.
β’ Create an exit plan for the cycle.
β’ If you feel like a genius or are screenshotting your gains, it's time to take profits.
β’ Taking profits means taking them OFF THE TABLE into fiat, stables, or long-term coins - not putting them into more high-risk projects.
β’ Create an exit plan for the cycle.
Bear Market PTSD
Two years of grinding away in the bear market means you've developed some bad habits.
Strategies in a bear market won't work in a bull market.
Here are some examples of bad habits...
Two years of grinding away in the bear market means you've developed some bad habits.
Strategies in a bear market won't work in a bull market.
Here are some examples of bad habits...
2. Focusing on Fundamentals over Pumpmentals.
Bull markets are all about speculation.
Look for projects that:
1) Can generate hype
2) Have a simple to understand STORY. Can people understand WHY the future prices will pump?
Too much fundamental analysis will wreck ya.
Bull markets are all about speculation.
Look for projects that:
1) Can generate hype
2) Have a simple to understand STORY. Can people understand WHY the future prices will pump?
Too much fundamental analysis will wreck ya.
3. Rotating TOO QUICKLY
Remember how narratives would come and go in a matter of days in the bear market?
Why? PvP environment + lack of new liquidity = Fast musical chairs.
Narratives last MUCH longer in bulls due to more liquidity. Don't rotate yourself out of profits.
Remember how narratives would come and go in a matter of days in the bear market?
Why? PvP environment + lack of new liquidity = Fast musical chairs.
Narratives last MUCH longer in bulls due to more liquidity. Don't rotate yourself out of profits.
4. Fading Momentum
The price has pumped 100% in the past few weeks.
You feel it's "too expensive," and you wait for a correction that never comes.
It pumps 10x further because it's a bull market.
PRICE IS A NARRATIVE
The price has pumped 100% in the past few weeks.
You feel it's "too expensive," and you wait for a correction that never comes.
It pumps 10x further because it's a bull market.
PRICE IS A NARRATIVE
5. Riding Narratives
You gotta identify trends early, ride them as hard as possible, and GET OFF before they stop.
β’ Find a Trend early (Spot the wave)
β’ Invest in it (Ride the wave)
β’ Take profits along the way (Get off before it crashes)
You gotta identify trends early, ride them as hard as possible, and GET OFF before they stop.
β’ Find a Trend early (Spot the wave)
β’ Invest in it (Ride the wave)
β’ Take profits along the way (Get off before it crashes)
6. Not Thinking Like Retail
Crypto Twitter != the entire space. You'll end up with too much flywheel, governance shit no one wants.
Spend time on Tik Tok, IG, Reddit, and YouTube. Read the comments. To understand normies, you must spend time with normies.
Crypto Twitter != the entire space. You'll end up with too much flywheel, governance shit no one wants.
Spend time on Tik Tok, IG, Reddit, and YouTube. Read the comments. To understand normies, you must spend time with normies.
7. Not Narrowing Down Narratives
Focus on 2-3 narratives.
I know you want to "catch them all," but you won't have any "edge" if you spread yourself too thin.
Focus on 2-3 narratives.
I know you want to "catch them all," but you won't have any "edge" if you spread yourself too thin.
Some Good Narratives
These have a lot of potential this cycle:
β’ A.I.
β’ RWA
β’ LRTfi
β’ DePin
β’ Memes
β’ BRC-20
β’ GameFi
β’ Alt Layer 1s / L2s
There's more, of course, but this should get you started if you're overwhelmed.
These have a lot of potential this cycle:
β’ A.I.
β’ RWA
β’ LRTfi
β’ DePin
β’ Memes
β’ BRC-20
β’ GameFi
β’ Alt Layer 1s / L2s
There's more, of course, but this should get you started if you're overwhelmed.
8. Chasing Too Much Yield
β’ Locking tokens up for airdrop points? Nah.
β’ Depositing tokens for an extra 8% yield? Nah. Not worth the smart contract risks.
Remember the suckers who deposited their coins into Celsius for an extra 5% yield?
There's a lesson there.
β’ Locking tokens up for airdrop points? Nah.
β’ Depositing tokens for an extra 8% yield? Nah. Not worth the smart contract risks.
Remember the suckers who deposited their coins into Celsius for an extra 5% yield?
There's a lesson there.
9. Panicking During Corrections
There will be MANY corrections on the way to the top. They're healthy for the markets and to be expected.
1. Don't leverage too much, or you'll get liquidated.
2. Don't try to time each correction - keep it simple.
There will be MANY corrections on the way to the top. They're healthy for the markets and to be expected.
1. Don't leverage too much, or you'll get liquidated.
2. Don't try to time each correction - keep it simple.
10. Being TOO Diversified
I've seen people post portfolios online before that were > 25 coins.
You can't keep up with that many projects.
And if a coin does moon, you won't reap as many rewards.
Concentrate. I find the sweet spot between 5 - 7 projects.
I've seen people post portfolios online before that were > 25 coins.
You can't keep up with that many projects.
And if a coin does moon, you won't reap as many rewards.
Concentrate. I find the sweet spot between 5 - 7 projects.
Simple Portfolio
β’ Long-Term: BTC, ETH, or SOL
β’ Narrative 1: An Alpha and Beta Play
β’ Narrative 2: An Alpha and Beta Play
β’ Narrative 3: An Alpha and Beta Play
Adjust the % and # of holdings based on your risk tolerance.
β’ Long-Term: BTC, ETH, or SOL
β’ Narrative 1: An Alpha and Beta Play
β’ Narrative 2: An Alpha and Beta Play
β’ Narrative 3: An Alpha and Beta Play
Adjust the % and # of holdings based on your risk tolerance.
11. Trying to "Make It" this Cycle
It's easy to feel like you're underperforming on Twitter. But realize that the algorithm rewards extreme.
Lottery winners go viral, not the guy who did a solid 10x.
You're competing against survivorship bias, larps, and photoshop genies.
It's easy to feel like you're underperforming on Twitter. But realize that the algorithm rewards extreme.
Lottery winners go viral, not the guy who did a solid 10x.
You're competing against survivorship bias, larps, and photoshop genies.
I've seen this happen countless times.
β’ You have guys that will make a 10x
β’ Feel like they're underperforming
β’ LOSE IT trying to chase a 50x - "Just 3 more months, and I'm set"
β’ and end up with $0.
Take profits along the way. If you can improve your life, take the money
β’ You have guys that will make a 10x
β’ Feel like they're underperforming
β’ LOSE IT trying to chase a 50x - "Just 3 more months, and I'm set"
β’ and end up with $0.
Take profits along the way. If you can improve your life, take the money
12. You're Trying to Time the Top
NO ONE can time the top of the cycle perfectly.
Many people lost their fortunes because they were trying to sell the "top" and mistimed it.
Solution? Sell on the way up, aka dollar cost average out.
NO ONE can time the top of the cycle perfectly.
Many people lost their fortunes because they were trying to sell the "top" and mistimed it.
Solution? Sell on the way up, aka dollar cost average out.
13. Revenge Trade
If I lost money in poker, I'd go on TILT and become more aggressive in trying to win my money back. It rarely worked.
Don't do this in Crypto. Lose money? You're emotional, and now's NOT the time for trading.
Take a few days off. Don't make things worse.
If I lost money in poker, I'd go on TILT and become more aggressive in trying to win my money back. It rarely worked.
Don't do this in Crypto. Lose money? You're emotional, and now's NOT the time for trading.
Take a few days off. Don't make things worse.
14. Not Cutting Losses Fast Enough
No one bats 100%. It's ok to lose, but UNACCEPTABLE to hold on to a loser.
Set some conditions before you enter the trade.
For example, cut it if it goes down by more than 15%.
No one bats 100%. It's ok to lose, but UNACCEPTABLE to hold on to a loser.
Set some conditions before you enter the trade.
For example, cut it if it goes down by more than 15%.
"But what if I sell it, and it goes higher?"
No shit, it happens.
β’ What if you hold onto it, and it goes to $0?
β’ What if it stays stagnant, and you could've allocated it to a 10x?
There's an opportunity cost to your capital.
No shit, it happens.
β’ What if you hold onto it, and it goes to $0?
β’ What if it stays stagnant, and you could've allocated it to a 10x?
There's an opportunity cost to your capital.
15. Copy & Pasting the Previous Cycle
Remember that each cycle plays out differently. We could have a shorter or longer cycle.
Stay flexible.
There's one thing that remains constant: human psychology. Understand herd mentality and greed.
Remember that each cycle plays out differently. We could have a shorter or longer cycle.
Stay flexible.
There's one thing that remains constant: human psychology. Understand herd mentality and greed.
Final Words
I know you're excited. But I've seen COUNTLESS people midcurve, overestimate their abilities, and roundtrip their profits.
Keep it simple.
Keep a level head.
I know you're excited. But I've seen COUNTLESS people midcurve, overestimate their abilities, and roundtrip their profits.
Keep it simple.
Keep a level head.
That's it for now.
If you like tweets like this, youβll love my weekly newsletter (itβs free).
Every Thursday, I share new strategies, narratives, and the latest news in DeFi.
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If you like tweets like this, youβll love my weekly newsletter (itβs free).
Every Thursday, I share new strategies, narratives, and the latest news in DeFi.
Join Here: thedefiedge.com
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