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How to Prepare for the Next Crypto Bull Run Using The Little Old Lady Method
The crypto world is no stranger to market volatility. We've seen it all, from soaring highs to gut-wrenching lows. If you're a crypto enthusiast, you're likely aware that a crypto bull run is one of the most exciting and profitable events in the cryptocurrency space. But what is a crypto bull run, and how can you prepare for the next one?
In this post, we'll walk you through the essential steps to prepare for the next crypto bull run, ensuring you make the most of this thrilling opportunity.
Understanding the Crypto Bull Run
Before we delve into preparation strategies, let's define a crypto bull run and why it matters.
Bearish Market Meaning
A bearish market, also known as a bear market, refers to a prolonged period of declining prices in a particular financial market. In cryptocurrencies, it means that the prices of most cryptocurrencies are decreasing over an extended period. Pessimism, fear, and a general lack of confidence in the market characterise bearish markets.
Bullish Market Meaning
A bull market is the opposite. It signifies a sustained period of rising prices and a positive outlook on the market. During a crypto bull run, the prices of cryptocurrencies experience significant and rapid increases, often leading to substantial profits for investors and traders.
Now that we have defined a bullish and bearish market let's explore how to prepare for the next crypto bull run.
2023 - A Bottoming Year for the Next Crypto Bull Run
As we enter the last quarter of 2023, we find ourselves in a unique position within the cryptocurrency market. We know this year has the potential to be a bottoming year, setting the stage for the next bull run.
The concept of market cycles, such as the Benner cycle, plays a significant role in understanding why 2023 could be a favorable year for a market bottom.
The Little Old Lady Strategy
One strategy developed by TRI’s founder Brian Beamish is the Little Old Lady (LoL) strategy. The LoL strategy is a systematic risk-management approach to navigate the crypto market during a bull run.
Real-World Example of the Little Old Lady Strategy
Let's look at a real-world example of how the Little Old Lady strategy applies to to cryptocurrency investment. We'll use the LOOM network (cryptocurrency) as an illustration.
How This Trade Started
To show this example of the Little Old Lady strategy, we'll consider the concept of "Sell Half on a Double" (SHOD) and “Free Position”:
- Sell Half on a Double: This is where you buy an asset at a certain value, then sell half of that asset at double the value you bought it. This means you get your original investment back, and the remainder is a “Free” position.
- Free Position: You earn a free position because you have taken your money out, and the remainder is risk-free. It could be 10x, or crash to zero, but there is no more risk to you.
Brian had already bought this asset and SHOD once. Then, during a recent market dip on Brian's birthday (the market loves to dump on Brian's birthday), he had an order set to buy LOOM when it came down into the reload zone. This second purchase is what Brian calls a “Second Car”.
Second Car—refers to rebuying back into a reload zone and loading up for another price surge.
How This Trade Is Going
Now, the second car has reached the SHOD level as well. This example serves as a public demonstration of how the Little Old Lady (LoL) strategy can apply to venture capital markets—in this case, cryptocurrency—emphasizing multiple cars and SHODs.
Brian Beamish also tweeted about achieving another SHOD trade, and the profits skyrocketed to 4 times the initial investment. It’s a testament to the power of strategic trading that can pay off big time even seemingly doing nothing.
The Success Story
Here’s the Tweet to Brian's journey from $500 to $300k+ that illustrates the potential of the Little Old Lady strategy. Brian achieved this remarkable transformation from a modest investment to substantial gains through disciplined and systematic Little Old Lady strategy trading.
Learn More in the TRI School & Community
To explore the Little Old Lady strategy and other advanced trading techniques, check our educational resources like The Rational Investor's Level 1 program.
You can also explore the membership community at The Rational Investor for hands-on learning and interaction with Brian, fellow students, and veteran traders.
Additional Insights
The next crypto bull run could be just around the corner, and the potential for significant gains awaits. Here's how you can prepare for it:
- Educate Yourself: Begin by learning more about cryptocurrencies, market cycles, and investment strategies. Knowledge is your greatest asset in the crypto market.
- Stay Informed: Stay updated on the latest cryptocurrency news and market developments. Subscribe to reliable sources, join forums, and follow experts in the field.
- Plan Your Strategy: Define your investment strategy. Will you hold, trade, or combine both? Set clear goals and risk management guidelines.
- Utilise Technical Analysis: Use tools like TradingView for in-depth chart analysis to make informed decisions.
- Join the Community: Consider joining a community of like-minded crypto enthusiasts and experts to share knowledge and insights. Sign up for a FREE 30-Day Trial now!
In a word, preparing for the next crypto bull run is not just about chasing quick gains but about ensuring you have a well-thought-out plan, a deep understanding of the market, and the discipline to stick to your strategy. With the right approach, you can navigate the ups and downs of the crypto market and capitalize on the next crypto bull run.
Whether you're a seasoned trader or a newcomer, there's always more to learn and explore at The Rational Investor.
Josh Morris
Lead Blog Writer at The Rational Investor
Josh discovered TRI in 2017 and became a smarter investor by following the teachings from all three levels of the TRI Education program. By 2021, He became the lead blog writer for TRI, sharing updates on the market and lessons learned. He regularly posts insights and trading tips on X @tri_pma helping traders navigate the investing world.
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