This is an extremely important message during bear markets.
When do you think the FUD is the loudest? Obviously, it is when times are bad. When markets run, any FUD gets quickly drowned out. The reverse is also true. When markets are tanking, good news is buried.
This is vital for long-term investors to understand.
The financial media excels, like all media, at creating noise. They are not honest in what they espouse. Instead, the goal is to generate interest. Since humans seem to have a negativity bias, that means promoting the negative narrative whenever they can.
It is also what leads the same Fin media to focus upon short term moves. Here is where the investor has to separate from a trader. For the latter, momentum and short term moves matter. To that individual, price is relevant.
When one is an investor, price means nothing. Anything happening in the near term, especially with markets, is just noise. Here is where ignoring the noise is the best practice.
Cryptocurrency Noise
Have you noticed all the noise surrounding cryptocurrency?
This is reaching epic proportions. People are now having to defend Bitcoin against the attacks that FTX and, perhaps, Binance will take it out. Obviously this is absurd since those coins, even if on an exchange, reside on the blockchain. The coins that are within the control of the CEX are affected but not the network. To it, where keys are kept and who has them makes no difference.
On Hive, we suffer the same fate. There is a lot of noise concerning many of the projects, most of us nonsense. Here again, we have to stress investment versus trade.
The cryptocurrency market saw a huge pullback. This is not novel. One thing we know about cryptocurrency is volatility. There are big runs in both directions. Mooning and crashing appear to be the two modes of the markets.
Of course, this leads to the media and other drama queens to pile on. Sprinkle in a bit of naysayers like Charlie Munger and the recipe for full blown FUD is at hand.
Those who want to make it big have to drown this out. Listening to these people will never help one to get ahead. Even someone like Munger is useless to people. Sure, making 10% ROI is wonderful yet it doesn't amount to much unless sitting on a pile of money. That return on $50 billion amounts to some change. When it is applied to a few hundred bucks, not much impact is felt.
Speculation is a rough game yet it is one that can really push people to new heights. With LBI, we see to get rich slowly. This means garnering outsized returns over a large number of years. Naturally, there will be a few where we take a hit, especially when the bear is awake. This is simply unavoidable.
Ignore The Noise; Keep Building
The solution to this is to keep building. Noise makes one fearful. Do not buy into this.
Instead, look to those projects that have long term viability and keep filling the bags. Fortunately, on Hive this can be done without putting money in. Through one's actions, the ability to add is possible. This is the formula that LBI is using. We post articles and curate, generating a weekly return which adds to the holding. This is something that each person on Hive should do.
Sadly, most succumb to emotions. They allow the state of the markets to dictate how they feel and, in course, what they do. This is not the case for a couple of us within LBI. Each day, we show up and do what is required regardless of the market.
Are we excited when the bull runs? Sure. But we understand this too shall end. Bulls turn into bears and vice versa.
The best thing to do is remain even keeled, keep adding to the stake based upon longer term objectives, and cash out when ready.
This is the path of investing. Too many pretend to be doing this yet behave like traders.
Ignore the noise. This is what successful investors do.
