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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.
Before we delve into preparation strategies, let's define a crypto bull run and why it matters.
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.
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.
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.
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.
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.
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”:
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.
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.
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.
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.
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:
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.