The term “bull run” is often used in the cryptocurrency industry by traders. A bull or bullish market could be said to be a market where there is an uptrend, that is, the price is taking an upward movement.
A situation whereby there is a continuous upward movement of price in the market could be described as a “bull run”. The upward movement is not continuous per se, in the sense that, the continuous upward rallying of price in the market would definitely stop at a price hereby setting the new all-time high price in the market. Correction or pullback begins at the new ATH price where the rallying stops.
However, a bull run is what most cryptocurrency traders look forward to as there is always volatility in the market and many coins pump (significant increase in value) during a market bull run.
It is said to happen every year after the bitcoin halving (that happens every four years). The last bull run was late 2017- early 2018 and the market is currently experiencing one at the moment.
This article would show newbies and conventional traders important things to take note of during a market bull run. Newbies would learn what to do and traders familiar with the market have things to learn as well that could help shape their trading skill.
An expert trader without discipline has zero to no tendency of being a successful trader especially in a market bull run where there is volatility in the market.
The first thing to take cognizance of in a bull run is information. Different sorts of information are bound to be flying all around during a bull run from different entities and individuals.
As a newbie trying to get the most of the cryptocurrency trading industry, the best thing to do is to try to gather information from the community of traders.
There are a lot of communities out there that train newbies for free. The experience gathered from the expert trainers can help guide a newbie’s trading journey as well as groom such individual for the next bull run in the market.
For conventional traders, the information from communities and social media platforms is very important too. While not all information is to be followed, that is where doing research comes in.
Doing Your Own Research (DYOR)
As it implies is a personal research exclusively done on information about a project, coin or token in the cryptocurrency industry. The essence of doing personal research on information gotten from individuals, communities is that jumping on information without doing necessary research like fundamental analysis could lead to huge losses.
A very good example of this was yesterday, 10th January, 2021, anyone who placed a long order on EOS would be in huge losses because of the news of the resignation of the CTO of block one and dip that happened in the market. But someone who saw the news before following the long signal from anyone would not have traded the coin.
Another fact about a bull run is that it won’t last forever. The fact that it won’t last for long means a profitable trader needs to take the opportunity in the market to make enough dollars from the volatile market.
Making money from the market also comes with taking necessary precautions while trading so as not to shoot oneself in the leg. One of those precautions is to take profits as there is a saying that “profit is profit”.
Constant usage of Stop Loss is one of the things a trader shouldn’t forget to use while trading during a market bull run. This will help reduce losses in cases of market corrections and as well lock in profits. There must always be market corrections and a smart trader knows how to trade the corrections.
There are always market corrections during a bull run. Market corrections occur when the price of an asset reaches a new all-time high. At this point, all addresses holding the asset are said to be in profit and the whales have to sell off to make corrections in the market.
The price could rally upwards to a new all-time high after the market correction if the bull run continues. A trader who wants to be successful needs to take note when the market reaches this point to sell off or take profit so as to avoid sudden dump and losses.