- The next bull market is going to make you rich
if you know the secrets on how to spot it.
With a little bit of psychology, economics, and
paying attention to company behavior, you can spot it,
and you get to enjoy all the rewards.
The longest bull market ran for eleven years,
returning 323% on the S&P.
It survived a European debt crisis, a trade war, and
even stayed through all six seasons of the Jersey Shore.
The only thing that managed to stop it
was a global pandemic, which also sent the
whole world to a grinding halt.
But here's the thing
and that's because it isn't some
straight line up for a fixed period of time.
Sometimes the best profits might come
early in the bull market.
Other times, hype might increase slowly,
investors tripling in over time.
But whatever happens,
you need to be there, ready to seize the opportunity.
And in order to do that,
It's the key to success in dating, work, and...
..and investing, too.
Except in this case, it's not your confidence
that matters so much as everyone else's.
Investor behavior is the number one
sign of an impending bull market.
like Cramer telling everyone to sell,
- I made a mistake here, I was wrong.
That was ill-advised, and I apologize.
But seriously, are more people
buying stocks and Bitcoin?
Can you smell the money and greed in the air?
Which news articles are getting more clicks?
The negative stuff or the positive stuff?
Investor confidence is particularly important in crypto because
it doesn't have the same intrinsic value.
So price increases can be caused by governments,
cultural movements, or even a well positioned tweet.
Bitcoin would be a tiny, worthless technology if
we weren't confident that it was this exciting
new way to think about the monetary system.
And Dogelon Mars would be worth a fortune if
we didn't think it was just some kind of weird joke.
Investor confidence, which is a nice way
of saying investor emotions, drives markets, and
it's your mission to spot it.
And even though crypto is affected dramatically from
these emotions, it's far from a crypto-specific issue.
Our own emotions have ruined the fun for
everyone since at least the 1600s.
It even drives massive stocks today.
Take Tesla for an example.
Tesla's price saw an unprecedented rise, helping to
make Elon Musk the richest man on Earth. But guess what?
A lot of Tesla's income historically and
currently comes from selling regulatory credits.
And in 2020 alone, the company would have run
at a loss if it weren't for these credits.
And that's not Tesla hate by any means.
That's an example of confidence.
People are so confident in Tesla and Elon that the
stock still does amazing. So keeping an eye on confidence
is a must for both companies and entire markets.
But it's important to remember that not
every rally or bout of confidence means
eleven more years of prosperity.
Which brings me to bull traps.
I know, I know, this one isn't really a sign of
a bull market, but it's a sign you must avoid.
It might be tempting to jump in on the Hype train
early when things are starting to look bullish, but
I'm asking you to take a minute and scope out
the landscape before you do anything crazy.
A typical bull trap looks almost
identical to a bull market.
But it's not.
This might be the worst thing a bull can do to you.
- Marco Galan lost his left **** when the
raging beasts horn pierced through his side.
- Second worst.
Here's how it typically works.
The price rallies before your eyes.
You see a positive article or two
on CNBC and you think,
meh.
Then it keeps rising.
You see more good news and now you're interested.
An important resistance level is broken
and suddenly you've lost control.
You're snapping up assets like crazy.
It's madness, but you're winning.
It's finally happened.
The bull market kicked off and you're getting paid.
You're already counting the profits and dreaming
of everything you're going to buy.
But we know how this story goes.
The market collapses, resets to previous lows.
You fell for the trap.
Now, there are many different versions of a bull trap,
bear bounces, dead cats.
But the general idea is that they
are smaller, shorter bursts in price.
But how do you spot a bull trap?
The best method is keeping an eye on trading volume.
How much money is being exchanged within
a particular asset or within a market.
This is important because when volume is low, it
takes fewer investment dollars to push prices up.
A stock increasing 10% with 100 million in trade volume
is much more meaningful than a stock increasing
10% with 10 million in trade volume.
The more money behind a trend, the
more confidence you can have as an
investor that it's actually a real trend.
But in general, the easiest way to avoid traps is to
take a broader, more zoomed out view of the market.
One of the best tips is to
This will make you less likely to be fooled by some
false rally if you're able to just take a step back
and look at the trend within a wider context.
And if we're talking wider context,
we can go even further.
And improving economy is one of the clearest signs
that the market is about to go up.
The more an economy does well,
the more people hear about it,
more companies hire, more money is spent
and you guessed it, more confidence people feel.
And we know what that means.
But what are the signs of an improving economy?
Well, GDP going up, stocks rising, crypto rising
and a red hot Japanese haircut indicator.
Seriously, there's a whole range of these bizarre indicators
for an improving economy, like the Big Mac index.
This uses the price of Big Macs to
evaluate currency values and per capita income.
The price of Big Macs literally helps show whether
the currency of a country is being priced correctly.
The men's underwear index is another one
that shows the demand for men's underwear
moves in line with economic health.
Apparently, underwear is a luxury for dudes.
As someone who's due for a fresh set, I get it.
Now, if you don't want to go around
asking your buddies about their underwear status,
you could also look at lower interest rates.
Generally speaking, when interest rates are low,
cash is cheaper, and the economy will
likely grow fast in the future.
When interest rates are low, it's when tech companies
launch in value, thanks to all that cheap debt.
But remember, in a bull market, you're going to get
all kinds of news stories saying one thing or another.
And while they might help move the market up or down,
it's best to focus on the clearest indicators every day.
There's good news stories, bad news, weird news.
What I'm saying is, if you only look for
certain kinds of news, you're going to find it.
But you won't be seeing the full picture.
You want to understand what's really going on
in the world, not convince yourself about what
you want to happen in the world.
But what if instead of going broad in
all economic seat, we went more technical?
We use some data?
Boring, maybe, but useful.
Spotting the next bull market might not
be as difficult as you think.
And the right technical indicators can be
like tarot cards for the economy.
Take the volatility index.
This will let you see if a 20% rise in prices
has occurred, which is a strong signal for a bull market.
You can also take a look at moving averages.
They give you insights on price trends.
A bullish crossover is especially interesting.
This is where the short term moving average
goes above the long term figure, which simply
means prices are breaking out and trending upwards.
You might also want to
consider an exponential moving average.
This puts an added emphasis on the most recent
price movements, meaning it reacts more quickly to a
changing market, meaning you can spot changes early.
Or you could even go full on market geek
and check out the 50% retracement level.
This indicator has been proven to show if we're
in a bull market or a bear market rally.
And believe it or not, it hasn't been wrong since the
World War II, so I strongly recommend you use it.
And if you're looking for an app
to monitor these things, I recommend Webull.
They have some of the best charts in the game,
and if you sign up, they'll give you
up to twelve free stocks just for joining.
I'll have them linked down below.
Now, these tools are all fantastic, but
I wouldn't use them on their own.
They're just part of your strategy.
Never bet the house on any one thing.
So we've already covered a lot of ground here
and there's no shame in watching through
this video twice, because memorizing these techniques could
literally mean the difference between you profiting in
the next bull market or not.
And be honest, ask yourself this, do you feel
confident enough right now to predict the market?
Or are you looking for even more signs?
Because if psychology and economics aren't quite enough, you
can always look at what companies are up to.
Companies spend ungodly amounts of money trying to figure
out the economy, and this is because they're the
first to be impacted when the economy is hurting.
Companies lay people off, CEOs get replaced, they
cut back on investments and they ride out
the storm any way they can.
So companies are incentivized to try and predict
what's going to happen next, which means if
you're smart and you pay attention, you can
let them do the predicting for you.
And it's actually pretty easy.
When companies in mass start hiring, opening
new locations or investing in ambitious new
technology, you should be interested.
It's not an exact science, but try to understand
the real reasons for the business decisions that you
read about and formulate what the impact might be.
Spotting the next bull market is exciting
and can literally make you rich.
So, ideally, you'll use all the indicators that
we talked about with perhaps a stronger focus
on those that best fit your skills.
But it isn't easy and you should look
for every bit of help you can get.
So follow what the big investors and the companies do
and then consider why they made those actions.
Now, thankfully, every type of investor is welcome
to join our investing community at Finova and
get a better understanding of the market.
We have a massive community of investors
who bounce ideas around and discover what's
really going on in the world.
So join us and you'll have hands-on coaching
right at your fingertips whenever you need it, boosting
your chances of success through knowledge and community.
Until then, that's the video, subscribe and
I hope you have a profitable day.