Have you ever seen a “hot stock” or surefire invesment that everyone jumped on? Then, do you remember seeing it crash and burn a few months later? If so, this article’s for you. Because in it, you’ll learn about why it’s never a good idea to follow trends.
And, you’ll also discover some key strategies for avoiding peak market prices whenever you do invest.
This tactic works for BitCoin, stocks, and real estate.
It’s also a strategy many elite investors use for avoiding market crashes and protecting their wealth.
Let’s take a look.
When Your Mailman Is Giving Stock Tips…
Once an asset goes mainstream, it starts getting overvalued. $20,000 BitCoin is the perfect example of this.
Everyone was investing, and a mania began.
Watch out when people who never invest or generally have no interest in stocks or Crypto start giving advice.
I’ve mentioned this before, but I sold all my Crypto in November of 2017.
Right after Thanksgiving.
Why?
Because all my cousins, aunts, and uncles (who know nothing about investing) were firing off alt coin suggestions and talking about mining rigs.
All surefire signs that the market’s bull run was nearing it’s peak.
When It’s In The News, It’s Old News
Why did people get rich off $1 BitCoin? And why did people go broke at the height of Crypto mania?
Timing and information.
Early adapters enjoy the biggest profits. It’s like doing your research on an obscure stock, learning of its potential, and then riding the wave as it takes off.
Sadly, most people never do this kind of research.
Instead, they get all their invesment advice from TV shows or news sites. As such, they’re usually behind the curve and miss out on the biggest gains.
When you only use mainstream news stories for invesment advice, you’ll always follow trends.
That’s because all the information you receive is public knowledge, leaving you with no competitive edge. Instead, you’re getting deals which are already at or near their peak.
Don’t rely on Jim Cramer or CNN Money for your “hot tips.” Join a forum, or teach yourself investing, then do your own research on what’s worth buying and what’s overvalued.
It’s the only way you’ll beat the market.
You Don’t Have To Make Money The Same Way As Everyone Else
A seemingly obvious concept, but one most people ignore.
Just because there’s a hot new trend that’s making others rich doesn’t mean you should blindly jump in.
Think of all the people who started buying up homes right before the big crash in 2008. Or all the novice investors gobbling up tech stocks in the late 1990’s. Many of these folks were driven by fear of missing out. Something which caused them to take needless risks in a field they didn’t understand.
Don’t make this mistake.
Stick with investments you understand or feel comfortable with.
Don’t Follow Trends (A Quick Recap)
It’s easy to get caught up in “fast money” and explosive trends. Especially when you see news story titles like “Everyone Is Getting Hilariously Rich and You’re Not” or have friends and family sharing all sorts of invesment advice.
This is all good and well for awhile, until the market collapses. And then, all those people in it for the quick cash have no idea what to do next.
As such, many of them (and especially people who invested right at the tail end of the fad) lose money.
Don’t make this same mistake.
Do your research and find good assets before they go mainstream. Or, look for invesment opportunities which have lost their luster.
Right now the Crypto scene is virtually dead.
No one does news stories on it, and you seldom hear anyone discussing Crypto any more. This makes me think that it’s a downtrodden asset, and one that’s worth investing (sensibly) in.
Once the market flares back up, you’ll ride the wave as an early adapter. Not a trend follower.
P.S. Looking to invest in Crypto before the next big boom? Then check out CoinBase. Use this link and you’ll get a free $10 in BitCoin after depositing your first $100.