Contrarian.

Contrarian.

My friends say I trade like a psychopath. Maybe they’re right.

I sold most of my bags when the market was euphoric. They said I was being fearful. They didn’t get it. I don’t blame them. They still thought we were going to $100K BTC. There was a time where I thought so too.

These days I’m buying after a 90% drawdown. They still don’t get it. Again, I don’t blame them. It’s a scary time. Everyone’s risk tolerance is different. But one thing I will say is people constantly overlook opportunities. So, here’s some insight into why I trade the way I do.

Emotions.

Something I learned a long time ago is that most people, by nature are emotional. There’s nothing wrong with it. But, they tend to let their emotions dictate their investment thesis. Emotions are a great thing, but they are not logical. We can always use emotions to our advantage. We can buy things people are too scared to, or sell when they are too euphoria-drunk to notice.

Echo.

Let’s talk about echo chambers. By definition, an Echo Chamber is “an environment where a person only encounters information or opinions that reinforce or align with their own.”

They are not “bad” or “good”. It’s a tool. Like most psyops, they serve a purpose. Extreme Greed is when market euphoria maxes out. For example: “WGMI”, “Buy More!”… etc.Extreme Fear is the opposite. I’m sure I don’t have to explain that. But what do these terms really mean?

Let’s keep it simple: They are echo chambers of market sentiment. Since social media grants access to information at light speed, this is as useful as it is dangerous. Some (powerful) people, organizations and entities even utilize these tools to shake you and your friends out. It’s hard not to get caught up. It’s even harder to speak out.

This is the nature of the game we play.

The Game.

Naturally, this information is a lot to process.

As humans, we tend to subconsciously copy one another… Especially people we trust. We value freedom of choice. But we value acceptance even more. So, being contrarian is completely out of the question for most.

If every person in a room says “(insert film) is the best of all time!” It’s hard to say otherwise.

Or is it?

The question I’d like to ask is this: Do you honestly agree with everything people say? What do you actually think? When markets are “Extreme” anything… it is a sentiment. It is not a universal truth. Which means there could be an opening… somewhere. These openings could then lead to rabbit-holes of massively overlooked opportunities. It’s that simple.

This applies to stocks, NFTs, crypto, real estate, business, etc. But most importantly: This applies to the game of life. Don’t ignore your emotions; challenge them. When someone tells you the “truth”, politely nod while you ponder opposite scenarios. So the next time someone says “buy” or “sell” ask them “why?”

Don’t sell your intelligence short. Stay curious. -Lite.