We all know the story about the tortoise and the hare. Yet, it seems when it comes to investing, we ignore the lessons of that fable.

Markets are driven by fear and greed. This is investing 101. If one wants to be successful in this arena, these two have to be tempered. Failure to do so will blow up one's account very quickly.

It is easy to look like a genius in a bull market. Let us be honest, most boats are lifted when the tide rises. Over the last couple years, it was easy to pick a decent project and what the price increase.

Bear markets tell a different story. What do things look like when the good times end?

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A Great Cleansing

Bear markets provide a cleansing. Essentially, they take out the trash.

We saw this in the DotCom era and now we are seeing it in cryptocurrency. A lot of projects, heavily funded, are in trouble. We are also going to see some, while not as widely publicized, go away.

This is the nature of bear markets.

The question is where does each person stand. When looking at the holdings of a project like LBI, we can see the long-term vision from the start. While the numbers are horrible at the moment, this is more the nature of the beast. Let us be honest, the only way not to get pulverized in a bear market is to not be in it.

Of course, that is not an option for LBI. There is a major difference: long-term focus. With this project, it is not where we are now but, rather, 5 or 10 years down the road.

One thing we can be certain of, the bear will end. We might not know when, or how hard we are going to be hit, but there is a day in the future where the bull comes out.

Until then, we just watch the world around receiving a powerful washing.

Override The Fear

One way to override the fear and keep things in perspective is to look long-term. A simple exercise is to look at a log chart of, say, Bitcoin. That has a lot of ups and downs over the years yet it still looks very appealing on a log scale.

That puts things in perspective.

LBI has focused on the long-term from the start. Never was it pitched as a "Get Rich Quick" scheme. Instead, we talked about the slow approach. That gets difficult to see when we are getting a greater than 60% return in the first year.

Now, it is becoming evident how "Get Rich Slowly", even in crypto, is applicable. The bear market has a way of humbling even the most aggressive of returns.

Markets go up and they go down. Over the long term, we seek to attain a strong annual ROI. The goal is a 20% APR. This is what was set out in the beginning.

There will be some years we are way above that and, unfortunately, ones where we do not hit it. Again, this is simply the nature of markets.

One of the problems that people have with markets is they are completely unrealistic. For some reason, it appears many feel they should only go up. This is not how things work. Because of this, when reversals take place, they are filled with fear, buying into the FUD that invariably shows up during those periods.

Just like getting too excited on the way up is a path to destruction, the same is true on the down side. The market can take one on an emotional roller coaster if allowed. That is where mistakes are made.

For now, while we are mired in the bear, we can take hope in knowing the bull will come roaring back. That is why we remain consistent in what we do. There is no reason to panic even if the holdings look like crap compared to where they were.

It is all part of being in markets.

Fear and greed are the enemies of success in this game.

Article by @taskmaster4450le

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