Feb 19 (edited) • General discussion
Time IN the market > Timing the market
Another day, another set of heavy headlines in the news that are tanking the market. Today it's the possibility that the US might strike Iran so of course, it's a red day across basically everything.
When things look this bleak, it is completely normal to feel a knot in your stomach. As humans we're hardwired for survival. When we feel a perceive threat or loss, like these massive red candles on the screen, we naturally go into "fight or flight" mode. We get a huge emotional surge and we want to ease that feeling as quick as possible and hit the sell button, accept the loss and seek safety. However, this is actually the most dangerous type of response you can do to your portfolio.
You're attempting to "time the market".
The hard truth is that trying to time the market is INSANELY difficult even for the top 0.5% of traders and investors with all of the worlds resources at their firms. Plus, you not only have to be right when you SELL... but also be right when you BUY back in. Historically, across almost all asset classes, the best gains are made immediately following it's absolute worst days. So in reality if you're attempting to "sit on the sidelines" and outsmart the news cycle, you risk missing out on the upside recovery that might actually just save you that pain in the first place. So what can you practically do?
Return to the foundational narratives that brought you to Bitcoin and blockchain in the first place.
When fear is at all time high, ask yourself - Did today's geopolitical news change the fundamental idea behind why I invested?
For us we think about:
- Bitcoin is still the ultimate form of non inflationary asset.
- The network continues, Bitcoin is still functioning as created, it doesn't watch the news.
- Adoption is still occurring, builders are still building on the network.
- Humans will human - meaning, this has zero to do with Bitcoin itself
- The US is $38.7 Trillion in debt and potentially about to start another war - money printing goes "brrrrr"
Again, we're not day traders, we're not attempting to tell you to hold or sell, what we want to do is teach you the survival skills necessary to evaluate market, news and circumstances and come to your own conclusions! We want to help you think differently and protect your mental capital.
That sums up today's post, hope everyone is holding up okay! Drop a comment below with how you manage yourself on these days, what helps you get over the market dumps?!
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Time IN the market > Timing the market
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