Average People Should Only Do This During Market Extremes
 |
May 30, 2019 —
For the average person, investing in anything can be a daunting thing. The financial world wants you to believe that it is so complicated that you need their paid help to get by.
The truth is that you only need to do a little research on your own and you can do better than their so-called “experts”.
There are only 2 times where you need to make your moves…and both are in times of market extremes.
What I mean is during times when everyone is euphoric and times when everyone is scared. Then be prepared to hold for many years in between for these extremes to occur.
For example, many people were piling into Bitcoin and other crypto assets from Sep-Dec 2017. This would be considered an extreme period of time of euphoria. The proper action is to SELL into this type of sentiment.
The average person was buying during this time when they should have been selling. But you cant sell what you don’t own, and most people bought their first Bitcoin during times of extreme euphoria like in Dec 2017!
On the other hand, Bitcoin started its downward fall in Jan of 2018 and is now entering into an extreme of fear and everyone is selling – and its not over yet.
The proper move is to BUY during these times and then sell when the euphoric period hits again, which won’t be for a couple more years.
But for the average person, this is easier said than done. Most average people do the exact opposite.
You see, in times of euphoria, it can be difficult to think that you won’t get richer yourself, so you have to resist this temptation to hold when you should be selling. This has been my biggest issue, personally.
So now you see that the only real factor here is yourself, and your own thinking behind what you’re doing.
Someone is always betting against you.
Investing is a zero sum game! Someone always wins, which means, by default, that someone else has to always lose, and that’s usually average people who like to follow the herd.
You can best believe that smart money people, institutions, are piling into Bitcoin right now, while prices are lower, so they can sell later when average people decide to pile in again.
They already know how average people normally behave and they are getting prepared right now. That’s what they do. That’s how they always get richer – and you need to do the same! This is true for any market.
So to sum this up: Don’t be average! Make the right moves only during market extremes, and hold in between.
This is very doable for the average person who can wind up very wealthy just by following this simple principle.
I believe we are in, or approaching, the extreme side to low prices, which means its been time to BUY – and will continue to be for the foreseeable future.
Update Oct 2023: We went from the depths of 2019 to those euphoric highs I was talking about in Nov 2021. Except most of us thought it would go higher so most of us missed this opportunity to sell. We came back to the depression stage in 2022-2023 and seem to be just coming out of it now. Its a buyers market, but get prepared to sell into coming euphoria in 2024-25.
Mike J Anthony
“Don’t be emotional. Its just business!“
One Reply to “Average People Should Only Do This During Market Extremes”