Euphoria.

Published in

Coinmonks

4 min readMar 25, 2022

“Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.” — John Templeton

Trading has taught me many things. In a way, it’s strengthened my mind. I’ve become pretty emotionless when it comes to making money and boy, do I know how to be patient.

Something that struck me during the last bull run was the drastic, 180-degree tone shift that took place on social media. Sure, people still had their occasional grievance here and there, but for the most part, it seemed as if most of the petty tensions were mysteriously lifted. Inspiration skyrocketed to all time highs and hopium became our daily communion.

Then… well, the same euphoria we clung to so dearly for hope, killed the market in cold blood without a second thought.

“I Told You In The Very Beginning That I Would Be The One Writing Your Name In The Notebook When You Die.” — Ryuk from Death Note (2006).

Euphoria Kills

Here’s the deal: Euphoria is not your friend; it’s more like a laid-back demon that likes to party. We’ve seen him many times.

In reality, you should become increasingly wary when you notice that the market is becoming less rational, more delusional and devoid of skepticism. That is the power of euphoria. Euphoria thrives off your dopamine. The people will ride the temporary highs euphoria carefully injects into the market, too drunk off their own emotion to notice what’s up.

For the most part, there are two types of people in bull markets — the clueless, and the emotionless. Unfortunately for the clueless, they are more likely to get taken advantage of. You will lose all of your money if you don’t pay close attention in these times — and you may not have the mental resilience it takes to recover.

The emotionless don’t have it all figured out either: they are sometimes too paralyzed by their own skepticism. Fear from markets passed have rendered them useless and, well, they’ve lost their ability to take risks.

I’m not a pessimist, I’m a realist. Let’s chat for a bit on the topic.

Vibe With Purpose

Know when to hold ’em. Know when to fold ’em. Know when to walk away. — Kenny Rogers.

To be a good trader, you need to know when to take good risks. Your risk must be cool, calculated and methodical. Lastly, you need to know when to lower your risk and most importantly: take some chips off the table. That’s it.

So, why do so many people fail? I believe it’s because they become too attached to their bags, because their bag is usually attached to a cult of some form.

Falling in love with your assets is a zero-sum game. When you become emotionally involved, logic and reason exit the building. You can not properly trade without them. More often than not, emotional traders find themselves back where they started.

So what’s the fix?

Be Like Water

“Water can take any form. It drifts without effort one moment, then pounds down in a torrent the very next.” — Spike Spiegel

Like water, you must become formless. Water can take any form, become any emotion and adapt to any surrounding. Water can be as soothing as the tea you drink in the morning, or as ravenous as the hurricanes that engulf cities.

In terms of trading, this involves.

Calculated Risk (based on your conviction, trends or technical analysis).
Profit Taking
Adapting to Markets
Goal-setting
Emotional Detachment (From your JPEGs, micro-caps, etc.)

On emotional detachment: I’m not asking you to be a psychopath. I’m asking you to consider the fact that 99% of this shit won’t be here next year. That’s all.

This mantra has saved my portfolio and leveled my mindset one too many times to count. I was able to adapt from micro-cap trading (where my expertise lies) to flipping NFTs.

My micro-cap friends told me I would lose all of my money if I made the switch. If I had listened to them, I would have been very bored these last two months. I’ve made more money in this bear than I was able to make in the last bull cycle. They were scared of change. I am not.

Closing Thoughts

This article is short, but timely in terms of the circumstances. Things are starting to pick up again, but we have not quite met the criteria to confirm a bull run just yet. I encourage you move cautiously while maintaining your confidence until then.

This is a great time to set some goals for yourself. Remember: If you aim at nothing, you will miss 100% of the time.

Invest responsibly. — Lite.

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Euphoria.

Euphoria Kills

Vibe With Purpose

Be Like Water

Closing Thoughts

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Written by Lite