Just finished reading 'Psychology of the Stock Market' published in 1912. 📔
In hindsight, this is a mandatory read for all crypto investors.
Below I'll include some of my personal favourite passages ⬇️
In hindsight, this is a mandatory read for all crypto investors.
Below I'll include some of my personal favourite passages ⬇️
"When the markets look weakest, when the news is at it's worst, when bearish prognostications are most general, is the time to buy."
For example, $ETH bottom, we saw:
- Substratum uses investor funds to short ETH to $60
-
For example, $ETH bottom, we saw:
- Substratum uses investor funds to short ETH to $60
-
An EXACT description of the $BTC run from the 3k lows, written over 100 years ago 👀
"The public notes the advance - but that there will be plenty of opportunities to buy on substantial reactions - strangely enough, these reactions do not appear"
Same
"The public notes the advance - but that there will be plenty of opportunities to buy on substantial reactions - strangely enough, these reactions do not appear"
Same
Remember everyone at 3k calling for lower prices because the 'weak hands' and 'scams' supposedly still hadn't been shaken out, and that 'to many investors' still remained for the bear market to end? 🧐
Ever wonder why the alt market needs a stable $BTC for rallies to occur?⬇️
(Metaphorically speaking, BTC price movements are the macro political + economic environment as described below)
(Metaphorically speaking, BTC price movements are the macro political + economic environment as described below)
Too many new investors get caught up in using 'them' and 'they' as arguements for which way they think price will go.
Instead, focus on:
-Where buying/selling are likely to come from
-The motives which are likely to actuate certain classes
-The character of long/short interest
Instead, focus on:
-Where buying/selling are likely to come from
-The motives which are likely to actuate certain classes
-The character of long/short interest
- Don't speculate on past events, the up/downside has already been discounted (priced in)
A more realistic approach to the "Cut your losses, let your winners run" aphorism
When trading, the timing of your position is much more important than the direction of your trade. ⏲️
A 2nd explanation for the rapid price increase from the $BTC $crypto bottom.
"Waiting investors are afraid to step in front of a demoralized market, but once the turn appears, they fall over each other to buy."
"Waiting investors are afraid to step in front of a demoralized market, but once the turn appears, they fall over each other to buy."
How to pick the top of this $BTC bull market
"Eventually a level is reached, or some change in conditions appears, which causes these scaling buy orders to be partially or entirely withdrawn, and selling orders to be substituted on a scale up"
Use this data.bitcoinity.org/markets/bidask…
"Eventually a level is reached, or some change in conditions appears, which causes these scaling buy orders to be partially or entirely withdrawn, and selling orders to be substituted on a scale up"
Use this data.bitcoinity.org/markets/bidask…
"Very little stock comes out on declines"
In other words, low volume declines are signs of continuation in an uptrend
In other words, low volume declines are signs of continuation in an uptrend
This was probably the most insightful passage of the book
"The end of the bear market is marked by the reappearance of 'support' and the removal of 'pressure,' so that prices rebound quickly and sharply from declines"
See chart below for how to spot this⬇️
"The end of the bear market is marked by the reappearance of 'support' and the removal of 'pressure,' so that prices rebound quickly and sharply from declines"
See chart below for how to spot this⬇️
"Optimism must consist in believing not that the tide will continually flow your way, but that you will succeed in floating with the tide."
Buying shitcoins in the hope that they will pump during an altseason is gambling, not investing
Buying shitcoins in the hope that they will pump during an altseason is gambling, not investing
-Their is no use for enthusiasm in any financial market.
-You want to keep as cool, calm and collected as possible.🧘♂️
-You want to keep as cool, calm and collected as possible.🧘♂️
I will leave you all with a final passage. It stretched across 2 pages so I will just quote it directly.
"Extreme prices will come at the time when the news is most emphatic and most widely disseminated. When that point is passed the question must always be, "What Next?"🧠
"Extreme prices will come at the time when the news is most emphatic and most widely disseminated. When that point is passed the question must always be, "What Next?"🧠
