2 Simple investor expressions that you MUST know before making Millions!!

$$Trends: Battle of the Bull and Bear$$

looks ferocious does it not?

Well that's because it is!

If you have been around markets long enough you may have heard traders use terms such as 'Bears' and 'Bulls' to describe a markets price-movement, but what do these expressions actually mean and why are these so crucial for investors to understand before buying into a Crypto-Asset such as Bitcoin?

To put it bluntly, if you are unaware of these two mighty creatures battling throughout our markets you WILL eventually find yourself getting caught between the claws and horns of the beast... Getting yourself ripped to shreds!

Yes, markets are really THAT vicious!

But what does all this really mean?

The term 'Trend' is used to describe a flow of Price-movement that is stable and long lasting in either an upward or downward direction.

Easy enough, but how does this tie into Bulls and Bears?

Well, I will start with the BULL because the BULL is everyone's favorite. In order for me to describe the BULL I will need you to sit back in your chair and literally envision a Bull's characteristics

The BULL is a large animal that attacks by running forth, piercing with its horns and throwing it's head into the air waving around its prey.

A BULL attacks forwards and upwards! This is key in describing an upwards-trend we call this a 'BULL-Run'

the BULL-Run is activated when a large group of investors over a period of time purchase Crypto-assets hoping to sell them later at a higher price.

The BULL-Run is a self-repeating cycle of

-Price rises!
-Optimism!
-Extreme buying!
-New Traders!
-'Expert' opinions!

You may think the BULL is all rainbows and smiles with the only concern on everyone's mind being "what colour Lamborghini should I buy?".

This is far from true..

The spirit of the BULL often pulls traders into a hysteria of greed resulting in a false sense of security, you will often see crazy investors claiming things like invincibility accompanied with ridiculous price goals.

The term 'fear of missing out' or "FOMO" for short is coined from the BULL-market. It is when people on the sidelines buy into an asset late during/nearing an end of a BULL cycle fearing they will miss out on a surge of price action resulting in a very high risk buy.

That is when a BULL-Run turns into a BULL-Stampede and everyone should be picking the right time to exit the arena!!

Time for the Bears to show up, The Bears are calm and collect, they show up in our markets to tame the madness of the BULL.

Now I would like you to sit back and imagine the characteristics of a Bear,

a Bear attacks by standing upward on two feet before delivering a downward fury of claws using its body weight to shred its prey to bits.

An easy way to remember a downwards long term shift in price is to call it a 'Bear-trend' while referencing the bears nature.

A Bear-trend is always lurking in the shadows of a Bull-run, it is impossible for the Bull-run to last forever.

The Bear market is triggered by a mixture of two things.

1. When prices drop the market has run out of buyers meaning it cannot sustain the inflated value because the buyers have all bought in during the BULL-run (this is defined as a 'price correction' )

2. A realization of profits. If early investors have made satisfactory profits they will usually sell off their asset in order to collect those profits.

These two mixtures create a wave of fear causing other sellers to also sell off crashing the price of the asset.

After these triggers we see our Bear's come into our market.

Bear-Market's are a self-repeating cycle of

-Price drops..
-'Experts' disappearing..
-Pessimism..
-Fear..
-Extreme selling...

The term FUD "Fear Uncertainty and Doubt." is coined from Bear-Markets.

The market will stay this way until our Bears run out of stamina overturned by the BULL reversing and repeating our cycle of BULLs and Bears.

People tend to think of these cycles as terrible, scary and frustrating.

These people are not successful traders!

For an investor to be successful they MUST make profits from both cycles!

A successful investor knows that a sustainable healthy market is one of Bull and Bear cycles.

A successful investor sets his eyes to make MORE profit from a Bear-market than a BULL-trend

and a successful investor does not play into FUD or FOMO.

So, how can you become this kind of Successful investor?

This is a question I plan on answering throughout my posts, as it requires a lot of inner work, paradigm shifts and enlightenment.