Bull Versus Bear Market Mindset

 

If you’re planning on investing in crypto – you need to listen to this episode! Dive in with us as Halle Eavelyn covers bull and bear markets (aka whether the market is booming or not) and why you need to pay attention to it if you’re investing in crypto! The market can heavily affect your mindset around your investments and therefore your life – so it’s extremely important that you understand how the market can interact with cryptocurrency. Use this episode to grow your confidence and make the right decisions for you and your money!

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Bull Versus Bear Market Mindset

This is an incredibly volatile time in the market. Bitcoin has dropped significantly. I believe it is more than 20% and it is expected to take a pretty precipitous turn downward. As a result, the altcoins have fallen as well and everything in the entire crypto industry is in the middle of an 11 on the Fear & Greed Index, which means extreme fear and greed. That is true of the stock market as well. People have lost 20% to 30% of their portfolios. We have seen such precipitous drops in stocks that it looks like crypto sometimes.

That information is true all the time. If you research, there are stocks that are dropping 90% or 80%. I have seen a picture of about twenty stocks that look like they are crypto stocks but they aren’t. They are regular stocks that are traded on Wall Street and they have seen that 90% drop. Netflix experienced an enormous drop, losing a huge chunk of its value almost overnight. I believe the catalyst for that was raising their rates a couple of dollars per month. They are also saying that they were going to crack down on shared passwords. That’s what’s making such a huge difference in the market.

I want to say whether you are investing in the stock market, you are investing in the crypto market, or you are sitting on the sidelines and watching, it does look like we are headed for what is called a bear market. I never knew this until I started paying close attention to money, but a bear market is basically a market that is going down or is already close or at the bottom. A bull market is when the market is taking an upturn or is booming. The bulls or the bears are not just Chicago teams. It also applies to Wall Street and now to the crypto market as well.

There are people who will say Bitcoin is at its biggest low in almost a year. They will say that they are bullish. In other words, they are buying and are excited about Bitcoin as an example. Bitcoin is the gold standard of crypto, and so that’s the one that I tend to use when I talk about a particular coin. It’s also the one that I feel strongest that is going to make a difference inside of this new energy of money long-term. That’s another reason that I choose to talk about it.

I am bullish on everything and here’s why. I have lived through the advent of the internet. I sold on a margin call. A margin call for those of you that don’t know is when you borrow against the value of the stock you have to buy more. When that value drops very quickly, they do what’s called a margin call. It means that overnight, you are told that you have to liquidate some or all of your assets to cover the balance because the collateral or the stock itself that they gave you the money against no longer has the value that it had. Sometimes yesterday literally.

In the late 1990s, after stocks like Amazon, Apple and Starbucks came out, there was a lot of speculation on internet stocks, which at the time were untried. I personally owned every single one of those three stocks that I mentioned. I was building my portfolio using a tool that at the time I didn’t understand and that was the margins. I’m buying something on margin. I got pushed out of the market almost overnight.

If you look at what's going on in the crypto market in the short term, it's a bloodbath. But, if you look over the longer term, we are really just getting started. Click To Tweet

The funny thing is those stocks at the time went down between 80% and 90%, but now you look at them and they are the Blue Chip stocks, Apple, Amazon and Starbucks, especially Amazon. Those stocks have made people fortunes. Those monies that at the time seemed so high were a fraction of what the stocks are valued after splits and everything else.

Mostly the thing that has happened to those stocks over time is time itself, and that’s what I want to talk to you about. If you look at any of what’s going on in the crypto market, in the short term, it’s a blood bath. If you look over the longer term and if you look back over the last several years, we are just getting started. There’s this wonderful graph that shows what the internet looked like as far as adoption. This is not of stocks but of the internet itself, what that adoption looked like in 1995. It was fourteen million people who were online in 1995.

Over time, between then and 2015, it grew to the adoption by billions of people of the internet. Within a twenty-year window, we went from fourteen million people to something like six billion people who were on the internet. Most of that happened in the next decade after 1995. The big adoption came in. The first stock market crash was in 1998 and 1999, and it was over by 2000. I didn’t look at the statistics. I simply lived through them. They may be off by a little bit.

After that, people started seeing that the internet wasn’t going anywhere. They started moving their typewriters off of their desks and getting computers. At the time, I had already been online. In 1995, I had been online for maybe around six months. I got into it at the beginning. 1994 to 1995 was when we all got the internet.

I had a computer on my desk by then for about three years. I started to code in HTML and those things. I was very much an early adopter. What you see now is the same thing. The early adopters usually are young people who have not been told it doesn’t work that way. They got trained a different way. It’s never going to work that way, and who also doesn’t like change in general. This is true for a lot of people.

I feel like there’s such an opportunity if you can simply learn to embrace change. Allow yourself to get up on the surfboard and learn to surf before the new energy of the money wave grows enough to become the tsunami that I see coming. This dates back to the very first episode that I did of Goddess of Crypto where I talked about that tsunami, and the download that I got from what I call the Goddess of Crypto to show me that this is the way and this is what’s coming in our financial future.

 

Don’t take my word for it. Don’t ever take anyone’s word for anything. Get out there, do your own research, and make your own decisions. That’s what you are here for. I am simply here as a guide to share what I know and to share what I’m learning. For those of you that don’t know, I’m based in Miami. I get to go deal with the stuff and be in the swim pretty much every single week. There’s my water metaphor again. I went to four conferences last month. I will go to two this month.

There are Bitcoin branches here. Every single Sunday, I can go to everything and practically every day and see what is happening, state of the art a la minute. That’s exciting for me. I absolutely love it. I love being on the bleeding edge because that’s where I cut my teeth in my business originally back in the early days of the internet.

I can see so many similar patterns happening. Going back to the graph that I was talking about if these numbers hit the way that we can see the graphs matching perfectly right now as far as the adoption. We will see that over the next decade, there are billions of people who are going to get involved with crypto. This time with this bear market, as the market drops so significantly, it will look like a blip. Just like what happened in ‘98 and ‘99, when the internet stock market crashed, there will be people who will pick up the pieces and who will acquire and move forward.

The other thing that I want to talk about that is so important is please learn from my mistake when I made it. Don’t do what I did. Don’t allow your fear and your lack of knowledge to get in your way. Now looking back, and I have long forgiven myself for this, what I wished that I had chosen to do instead was to say, “I didn’t know how to use that tool properly. I didn’t see the numbers coming. I didn’t see how to exit. Now I’m going to learn. I’m going to choose to get more involved. I’m going to choose to learn more information and to pay more attention and to study this stuff a half an hour a day, fifteen minutes a day on the potty, if that’s what it takes.”

Instead, I got so scared. I never even told anybody that I had these margin calls. I didn’t tell them that I had been pulled out of the stock market. The money that I had been putting in every few months for several years was gone. It was because of fear and I didn’t think, as somebody that had never trained with money. I didn’t have a Finance degree. I didn’t have an MBA.

I remember back then, it was the beginning of the internet. There was no YouTube. You could not go to get a great resource unless you went and read a book, and those books were a little dry. Let’s say it wasn’t appealing. Were there people that I could have asked? Were there people that I could have found and asked to guide me? I absolutely could have.

Don't ever take anyone's word for anything. Get out there, do your own research, and make your own decisions. Click To Tweet

My father would have been a great person to talk to since he’s been in the stock market at that point for probably 40 years, but I was afraid. I didn’t feel comfortable asking for that help. To be honest, I felt stupid. I felt like I should have known better. Now, as a mindset coach, I can tell you that we all do this to ourselves all the time.

We think, “I’m stupid because I don’t understand something.” It’s not, “I don’t understand something because I never learned it because they don’t teach this stuff in school,” and they still don’t teach this stuff in school. They don’t unless it’s higher-level education, but they should be teaching this stuff to kids in kindergarten. They should be teaching children about compound interest when they are five years old.

I heard about it for the first time in a class when I was fifteen and it was literally two paragraphs or something. I remember thinking, “That’s going to take forever. I don’t have that long. What a mistake.” Nobody explained it to me from the standpoint of why I should care, what’s in it for me, or how it could help me later.

The whole idea is that somebody goes to you and says, “Take $0.10 of every dollar you make. If you are making $200 a week at your first job, start putting it aside because you have nothing and it doesn’t matter. As you make money going forward, you’ll never miss it. You will have this enormous nest egg.” People don’t tend to do that with their kids or their grandkids.

If this makes sense to you, share this with the little people that you know. Change their lives early because even if you didn’t make that choice for yourself, you could still help a young person make it for themselves. The question is always, “What’s in it for me?” That’s what everybody wants to know. Educating yourself fifteen minutes a day until you at least have enough comfort in your choices to be able to get into a market is not too much to ask.

To say out there in the world right now, “There’s a bear market going on and I don’t understand. If people who study this stuff know what they are doing and they are not making any money, how can I make any money?” In my opinion, that’s a mistake. I think that as women, we can be guided much better by our intuition. We can trust our intuition.

 

I know women who invest entirely in stocks on their intuition. Look at me. I had no access to my intuition at the time and yet, knowing nothing, I bought three stocks that are now considered the modern Blue Chip stocks, the ones you can count on. I find that ironic and wonderful. After I got through the difficult period of telling myself how wrong I was, I realized that all I did was keep myself from being in the market at a time when I could have made a lot of money.

I have been scammed out of stuff in crypto as well. I don’t know anybody who hasn’t been scammed at least a little bit if they got into it enough. If you are just buying Bitcoin and that’s all you ever do, and you are buying it through an exchange that you trust, and then you are transferring it into a cold storage hardware wallet, you are great.

If you are getting more speculative than that, chances are somebody will come along and scam you. I will do a future episode that is entirely about crypto scams. There are a lot of them and I collect them so I understand what’s going on over time, and how to make sure that my clients avoid them completely when I teach on crypto.

What I want you to know right now is don’t be afraid because your fear will keep you from learning. You don’t have to invest anything. You don’t have to jump in with both feet. I think there’s going to be a bear market for a while. I didn’t sell before the bear market. I held everything because long-term, over time, I truly believe in the future of cryptocurrency. As far as I’m concerned, it’s a physical transaction. It’s all going to go right back up again and it’s going to go up significantly more.

I’m not talking about six months, you can day trade over the day. You can swing trade over periods of time. I would love to swing trade. I am busy running my business and that seemed harder. My choice is to use dollar-cost averaging to go in overtime. That’s how I do it. You do you and do your own research before you get in at all. Understand that time will cure most of this. Over time, markets usually go up and this particular market, just like the internet, is being adopted over the next decade and two decades. That’s where we are going to see significant shifts.

I hope this episode has been helpful to you. Please like, comment, and subscribe on your favorite platform. We’re on seventeen platforms and YouTube. I would love to have you share this with the mothers, best friends, daughters, and grandmothers in your life. I want all the women in the world to know about the new energy of money and to learn to surf the waves. I will see you next time.