Bull markets will impact your life 100%, whether you have a massive win or no win. They will still impact your life on some level, whether it’s psychologically or financially. And in this video, I want to go over exactly how to navigate bull markets so you don’t make the mistakes that I’ve made through the several bull markets that I have had to bear witness to and be completely humbled by. Without further ado, let’s get straight to it.
Welcome back! If you’re new to the channel, my name is Matt Jimenez. I’m an entrepreneur who has worked with the greatest minds in finance, and I’m here to pour into you guys everything they poured into me. Bitcoin hit its all-time high this week, and of course, alongside with it, many other altcoins did the same. And I want you guys to understand that this is not the first nor is it the last. And typically when bull markets kick off, there is severe pandemonium throughout a large portion of individuals, primarily those looking to better their lives but they don’t know how to. So, they look for investment opportunities that could do that for them. This is typically what tends to drive a bull market a lot further than it should.
Markets are highly tied to the behavior of humans. The more optimistic we become and the better an asset does, the crazier we go with it and the more money we invest, whether it be on borrowed money or money we should not be investing. We will dump it into the market through our emotions that are driving us rampant. And to avoid all of this so you can make this bull market profitable, I want to share exactly what to do when you are involved with sitting through a bull market. Now, there’s two ways to look at it: you either become profitable or you learn a lesson. I’ve learned plenty of lessons, and that’s exactly what I’m here to teach you today. There are two bull markets that have sculpted who I am as a person today when it comes to investing. The very first one was back in 2016, 2017 when we had the bull run in altcoins and Bitcoin as a whole.
During this time, I took $7,000 to over six figures, and I watched most of it dwindle away as I sat with my confirmation bias that this will never end and we’re only going higher. This is something that I covered in my last video. If you haven’t watched it, hit this link where I talk about loss aversion. And if you haven’t heard about that, it is super important for you to understand it because it’ll help you take yourself out of an emotion that is driving your investment decisions. The second bull market that really made me who I am today is a bull market that happened in a commodity, and this commodity is uranium, to be exact. Yet again, I invested a few thousand, and lo and behold, this few thousand turned into over six figures once again. But it seems that I didn’t learn my lesson from the first time around, and what happened is I donated most of that money back to the market.
Now, if you want to avoid doing this, the most important thing you need to understand is that bull markets come and go. Typically, the way that investments move is on an escalator up and then an elevator down, meaning from when the bull market started to its height is typically a lot longer of a time period than when it goes from its peak down to its bottom. But understanding that this is just a cycle and there’s another one will take out this sense of urgency that you have to where you have to be irrational with your investments and you have to grab as much money as possible to put in. And when the sense of urgency is eliminated, it takes away this drive that you have to do irresponsible investing, meaning taking on more debt just so you could invest more, meaning you simply just do not have that money yet and you’re taking on far more risk than you should.
I see a lot of people take leverage positions to try and maximize the little bit of money that they have. And when you realize that, yes, this bull market may pass and yes, you may miss out on some gains, it’ll happen again. And with the thought of it happening again, will allow you to relax and not be irresponsible in your decision-making on the first bull market and allow you to be more prepared for the next bull market. And in fact, if you’re patient, you will often find yourself in a far better position when the market has bottomed out and you find yourself with a better deal. This is something that helped me drastically once I got out of the emotion of, “Oh my God, I need to grab as much money as I can, I need to take leverage positions, I want to be a multi-millionaire tomorrow, this is what I need to do, I don’t care at all cost.” Once those emotions were gone and I thought through this logically, okay, this will come and it’ll go, but it’ll come again, and when it comes again, I’ll be prepared. Hopefully, this time I’ve learned my lesson, I think I have, and I will be prepared for this bull market. And the next piece of advice I want to give you guys is always make sure to take your profits off the table.
There is no such thing as a profit until you have sold the asset. So do not be scared to take your initial investment at least off the table and some profits. This is something that I learned and it’s something that I will always carry with me moving into the future. My problem was it was never enough and I never took profits off the table because I didn’t want to diminish the potential returns that could be there in the future. Now, you need to realize the potential returns are unrealized, meaning they don’t reflect, it does not impact your life, it is fake money until it is sold and hits your bank account. Until then, it is all just a facade. And when you look at it through that lens, you will act far more logically than being completely controlled and thinking that this profit is real. Nothing is real until it’s sold and nothing is real until it hits your account. That is the biggest piece of advice I can give you for this bull market as we kick off. And make sure that you take full advantage of these lessons.
For me, because I had to learn the hard way, I’ve always donated my money back to the market and I’ve always stressed myself out with tons of emotions of the fear and greed that comes along with it. We all know FOMO, fear of missing out, and this is very true. People do anything to not miss out. Do not fall trapped to your emotions because they will completely eradicate your potential in your portfolio. One thing that I’m doing to eliminate the emotions that drive me through the bull markets is to actually invest more of my money in things that are uncorrelated to bull or bear markets. And one of the particular investments that I’m talking about is utilizing software that trades for me, whether the market is fully rallying or completely tumbling. It’s irrelevant to its performance because it is trading both long and short. So whether we continue pushing higher or lower in financial markets, it doesn’t matter. My software will still continue to trade for me and perform for me so I don’t have to worry about the overall sentiment of a market. I become fully detached from that. And if you’re curious about the one that I’m using, the link is down below, and I’ll see you in the next video.
Peace.
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