The bulls and the bears

Authored by: @hetty-rowan




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Crypto Trading

Today we are going to take a closer look at the world of trading ... because even though we at LBI are not at all focused on trading and for our token the **HODL **principle is the only thing you need to master, (nice and easy anyway), it still is important that we also understand the principle of trading in order to at least understand in which part of the market we are.

A constant fight

That is one of the most important things to know if you want to start with cryptocurrency trading. Are we in a Bull market, or are we still in the Bear market? And where do those names come from? The Bull and the Bear? That has everything to do with how these two animals fight. And oh yes, we know all about it… they are constantly fighting each other. The Bull comes from below and strikes upwards with its horns to damage the enemy. A Bear comes from above, slapping its claws down to deal damage to the enemy.

  • So the Bull is hitting from the bottom up with its horns up, the market is rising… we have what is called the Bull Market.

  • The Bear hits from above with its claws down, the market collapses… we have the so-called Bear Market.

What do you prefer?

Which market is the best…? The answer to this is actually different for everyone. If you don't trade, a Bull Market is obviously better. But traders can also make a lot of profit in the Bear Market. HODL'ers… yes they are automatically not very happy with the Bear Markets. Or you must have a large bag of money and buy new bags of crypto in the Bear Markets.

Understand the market is important

But no matter what ... even if you are only HODL'er, it is important to understand the Bull and Bear Market. Because it is of course much better if you can convert your collected crypto into a Stablecoin, or into your local currency, in time, at the height of the Bear Market, so that you can buy back more once we reach the low point of the Bear market.

Respond to the market

So having said this… it should be clear. Without knowledge of the Bull and Bear Markets, and the different phases of these markets, you can never respond properly, and it is more luck than wisdom if you make a lot of profits. If you are in crypto, and we are all here… then it is advisable to gain your knowledge about this.

Knowing when to enter the market

Even if it is only to know when the Bull Market has reached its peak, and so you should in fact switch your crypto to a stable coin or local currency, or if you want to continue trading, you are at least aware of that the market is Bearish and will be Bearish for a while until the Bull strikes again. But it is also useful to know when the Bear Market is nearing its lowest point. That is of course the best point to enter, and also the start of the next Bull Market.

The Bull and Bear Market can both be divided into two phases, and these two phases can both be divided into three phases.

The two phases of the Bull Market are also known as;

  • Accumulation phase
  • Markup phase

The two phases of the Bear Market are also known as;

  • Distribution phase
  • Decline phase

All these phases can be divided into 3 time phases, early, middle and late.

A brief explanation of the different phases is;

  • In the Accumulation phase, many investors are filling their pockets, they accumulate the crypto. There is a lot of buying, but it is not yet completely clear whether we are going Bearish or Bullish. This is THE time to step in and buy the crypto you want in a cheap way.

  • The Markup phase is the last phase of the Accumulation phase, small increases in prices can be observed, and new investors are attracted by the increases. These new investors, and traders who enter, want to piggyback on the way up that is clearly coming at this stage. The FOMO strikes and ensures a further increase! But keep in mind, this stage is the most risky stage to enter the crypto markets!

  • The Distribution phase is the phase in which the biggest hype is over. Less and less money is being pushed into the market, and a free fall down starts. In this free fall is the distribution phase where many traders cash in their profits, and other traders still hope to be in a bullish phase.

  • The last phase is the Decline phase. The big money has been pulled from the market, and there is too little support to get the price up again. Confidence is diminishing, and traders are biding their time as they know that after this phase, the Accumulation phase will be reached again. And that is the time to get back on board… and take advantage of the beautiful road up again.

Recognize the cycles

As you can see, there is a circle in which it goes around. And so it is important to be able to recognize these cycles. The moment you can recognize this, you can board at a good time. And not entirely unimportant ... Get out at a good time to keep your profits SAFU, to increase your profits again with the next cycle.

But how do you recognize it?

And an important part is of course, … Learning to recognize the phases. How can you do that? I will tell you more about that next week, because believe me… If you don't know this yet, THIS is a great time to learn this together with me! I myself am still looking for my way in this, and learning. For next week I have the Candlesticks on my program, and that is an important part of learning to recognize which way a course will go.

I hope you will be back next week!



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28 comments
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In reality, the bull and the bear is essential. Sometimes we need the bull to build up, but the dip and even wait up. I have only seen one full bull and that's the one of 2017, the one we are seeing hasn't really affected the alt coins.
This is a well written post, remind me to trade with caution.

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Yes both are essential, without Bears, no Bulls ... but it is important to recognize when the market is bullish or bearish. And yes, trade with caution is always very much recommended. No one wants to lose money.

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I did not know the origin of the names bear and bull, thanks for the explanation.

I have invested in both markets: in the bear market you will surely lose your investment unless you know which is the lowest level before the bull market ...

It is difficult to understand what the movement is for someone like me who has no technical knowledge. Great article, really informative 👏👏💪

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Oh we've all been there I guess. At least I know for myself, I have been there ... and lost money with that. And exactly that is the reason that I thought, I really need to learn to understand the trading thing. How would I ever think to make money with that, if I don't understand what I'm doing?

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Hey you didn't share your opinion on the phase we are in right now :)
Late markup phase what do you think ?

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Lol, as I'm still trying to get a grip on this trading thing, I'm not sharing my opinion that fast ... I'm not sure enough right now to say you're right, or that we're in the early markup phase.

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Good we agree on bull and markup already haha.
Looking forward to your candlesticks analysis next week ;)

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Well explained!

I do not use technical analisys but I follow my senses and intuition. When the market is bullish then a lot of positive articles and news appears, as also many people talking positively about the market. My sense tells me that we are on a rally and it’s could be a good time to sell.

Otherwise, when news and people are negative about market then I feel a turn down is coming. In this case I need to pay attention to buy.

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I don't have any technical knowledge too, but I feel that I'm missing a lot of money because of that. Listening to other people can be a good thing, but I think if I do understand a lot better of what is going on, and can even learn to interpret the candlesticks to predict where the market is going ... I can make a lot more. And am not always late to the party ... I really think that it's better to know what the market does, to understand where it can be going and act before it happens.

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Definitely waiting for the decline phase to get back into bitcoin and ethereum, the question is: when will that happen ?

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Yeah well that's the question I have too ... and I am trying to learn to predict when this will be.

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Trading is okay but not really my thing. I'm a lover off HODL:)

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I would be the same, If I had enough to HODL, but when you don't have that much to HODL, and not the money to buy yourself a big bag to HODL, I think this can be a way to get a bigger bag. And when that happens, yeah ... for sure that I'm going to HODL very strong.

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Well explained. I want to add that one should consider the return on investment when considering bear and bull markets. It is essentially whether or not investing in the coin will net enough profit to cover the risk. For example, if you have a chance of earning $1 but losing $2, I would not take the trade. This is one of the criteria's I use when deciding to enter a stock or crypto. What happens is most people who already bought in are already in and without the injection of new money, the prices will have a tough time going up. Of course, you may not be able to decide the risk/reward every time but it helps a lot.

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(Edited)

That's something that always should be in your mind too I guess. But for me, at this moment ... I can not buy crypto with money because I don't have money to buy. So the only way I can get more crypto is riding the waves and trade. And yes that is a risk, but in this case ... I take the risk. But to reduce the risk, it's important to understand the trading, to understand the market, to understand ... and act to what you can interpret that is going to happen.

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Didn't quite know the names for this phases till now. Thanks for explanation.
I however know, I detest the bear season. It can be highly frustrating seeing your tokens lose value. Not much of a trader but I love the bull season, who doesn't?

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You're welcome. I didn't know it too before I went into searching about crypto trading. So we both learned something new here ...

I think everyone loves the bull season, but as with anything. They are both important, without the Bears no new money would go into the market and without new money, the Bull can't keep running ...

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I think they are aspects that complement each other (in some way). They represent two different points of view, but they are "linked".

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Without the Bears no Bulls, that's what I think ... Without Bears no new money flows into the market. And without new money, how is the Bull supposed to go on?

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Both are part and parcel of trading , both are required in trading but it is very important to know the trends and understand it to avoid losing heavily.

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Exactly that ... they are both needed, but important is to understand the trends, and waves to reduce the risk of losing. And always give yourself a point to where you will go when you see the Bears coming but you expected a Bull, what is your limit and where do you stop to avoid losing more. Set a limit to the point you can take a loss, and same in the Bull market. Set a limit and withdraw your money to avoid falling back because you were too greedy.

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Great explanation. Since I am still quite new to all this I had my own little ideas of what bulls and bears meant. I thought that a bull market was one that was charging forward like a bull and that a Bear marker was like a hibernating bear, asleep and not doing much. I look forward to the next post and think these will form a great educational series. Thanks

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I'm trying to learn this myself, and I hope I can help other ones when I'm learning myself the in's and out's from trading. As we all need to have a basic knowledge about the market in crypto.

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Very nice post.

I am a hodler becauseI dont know to trade the times that I tried I had loss money.
So I decided to be a hodler because the money I have invested in crypto in money that I don’t miss

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They cycle is very essential for the traders. Everybody talk about the market when it is up. For the long term holders the up and down doesn't matter much.....

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