The Bear Market Migraine: Cures and Remedies
Bitcoin value dipped down to around the $8,500 range yesterday after hovering around $10,000 for multiple weeks. It's no surprise that cryptocurrencies are acting in a volatile manner and we should not be shocked when prices sharply spike or rapidly dip.
With that said, we are human, and humans have emotions (well, most of us do). The issue we often face is becoming saddened, frustrated, or depressed, when our favorite coin(s) plummet in value.
A segment of the population (perhaps those who bought BTC at the all time high) will even feel physically ill with nausea, lack of sleep, loss of appetite, and migraines.
Daniele Levis Pelusi on Unsplash
So what's the cure?
In the medical field, the phrase, “Prevention is the best medicine” is thrown around a lot. The reason for that is because if people would work on preventing their sicknesses or injuries before they happen, they wouldn't need medical treatment to begin with.
Wouldn't it be nice if there was a way to prevent negative emotions from ever arising during a market downturn? Wouldn't it be great to create a bulletproof vest between your investments and negative emotions? Well, there is... and it's called vision.
Living with vision
Of course, being able to see through your eyes is important, something we often take for granted. Living with vision means living with the future in the forefront of your mind. Having vision means not putting as much emphasis on the now as much as the later.
Let's apply this to the volatile crypto space. We, as retail investors, oftentimes focus too much on price. I see this all the time on Twitter where people are up in arms because the bulls or the bears took over the market.
Stephane Yaich on Unsplash
Living with vision in the crypto space means that current price volatility doesn't phase you. You, instead, are focused on the fundamentals as XRP community member Kevin Cage mentions in many of his YouTube videos.
To live with vision means that you are keeping your eye on the prize. It means that you are going to finish the race no matter what happens from day to day. The difference between the winners and the losers is long-term vision.
Winners have their mind set on the end goal. If an athlete sprains their ankle or breaks their leg, it doesn't stop them from healing and then stepping back into the game. They know what they want. Do you?
Investing with the end in mind
When you input your destination into your GPS, it will then calculate a route and show you the proper roads to drive on. If you don't tell it where you are going, you might be late or even miss yours stop completely.
Investing is like a GPS. You have to input where you want to arrive in 1 year, 2 years, 5 years, 10 years down the road. From there, you need to choose the vehicle that will give you the best likelihood of reaching that destination.
Vidar Nordli-Mathisen on Unsplash
Everything starts with knowing what you want, otherwise you will become prey to the inevitable frustration, anger, and migraines that can and do occur when markets are down in the dumps.
The vehicle is the mechanism, the tool that assists you in reaching that destination. You, on the other hand, are the driver in the driver's seat. You control the wheel of that vehicle and tell it which road to travel down.
With investments, success will come with proper positioning, timing, and a bit of luck. The cryptocurrency space is still nascent, and it is important to research what you are putting money towards before making an investment.
Keeping your head up
Let's face it... looking down at the ground as you walk or as you drive is not going to help your situation. In fact, walking or driving with your head down is dangerous and can cause damage to yourself and your vehicle.
On the flip side, keeping your head up will allow you to see the road ahead more clearly, helping you to see new opportunities and avoid the ones that don't line up with your end-goal vision.
We're all human and we are not going to have this attitude on a daily basis. But, the more that you practice keeping your head up, the more habitual it will become. Before you know it, you will have constructed a bulletproof vest that stops mood swings right in their tracks.