The STUPID things people do when Bitcoin’s price is YO-YOing up and down

the stupid things that people do when Bitcoin's price is yo-yoing up and down. Okay, so if you hadn't noticed, recently Bitcoin's price has been like climbing up a day and then dropping down a couple days and then climbing up and then dropping down three or four days and then climbing up and down, down, down, up, down, down, down. So this is common when the price is bottoming and uh that typically happens for some series of months could end at any time. Nobody knows but let's assume this is going to go on for a couple months. James Czech says you know at a minimum it's probably going to last until April end of March or April probably longer but anyway goes up and down. So what do people start doing when they notice that the price is climbing up going down climbing up going going down etc etc. Well, there's a bunch of stupid stuff people start doing. One, they start selling their Bitcoin because they're exhausted. They can't take it anymore. It's called time pain. The price may not be dropping because it keeps kind of going back to where it was. But time pain is you keep going back to where you were over and over and over and over until people just give up. They're like, I'm done with Bitcoin. I'm done with Bitcoin. And when the very last person who's done with Bitcoin gets off the bus, well, then of course the price rises and people are sad that they did that. So, the number one dumb thing people do is they sell the Bitcoin. Don't sell the Bitcoin. It's not that hard. Just buy more Bitcoin if you can. At a minimum, don't sell the Bitcoin. Now is a fantastic time to be accumulating Bitcoin. But the other uh thing people start doing is they start trading it. Do not do this. So, what happens is people notice, wait, it keeps going up and down. Let's say it keeps going up and down between, you know, 65,000 and 69,000 or 68. And people are like, "Oo," they have some brilliant idea, right? Dumbest idea ever, but they think it's brilliant, which is, I'm going to sell it at 69, buy it at 65, then I'll sell it again at 69, buy it at 65, sell it, buy it, sell it, buy it, and each time they'll pick up a couple percentage points more Bitcoin. The problem with that strategy is it works great until it suddenly stops working great. And it always suddenly stops working great when people are certain that they figured it out and that the pattern will continue. And so what ends up happening is for example the price starts to drop and so they buy it at 65. Well then it drops even farther to 64 63. So they sell it again thinking oh it's going to drop more I just need to do my strategy at lower prices now. And then of course as soon as they sell it at 63 they bought it at 65. They sell it at 63. Then it shoots up to 68. And then they're like oh no I need to buy back in because I missed it. Thinking it was going to go lower. So they miss out on 10, 20, 30, sometimes 40% price movements because they were expecting it to go go up and down and up and down and up and down and then it just stopped. It just didn't do that anymore. So very common that people do that. Secondly, um they reverse happens which happens all the time which is they're buying selling they're buying selling they're buying selling. So the price goes up to 68 69,000 they sell it and then it runs up to 90,000 and it's like well that was the end of it. I mean it's just not going to do that anymore. So at some point, could be today, probably not today, could be weeks, could be a few months, could be a couple months, could be one month, we don't know. Nobody knows. If anybody knows, they could bet with huge amounts of leverage on the future and make a ton of money. Nobody knows. Nobody knows when Bitcoin will suddenly drop farther. Probably won't go that much farther if it does, but nobody knows if it drops farther um or if suddenly it runs away. And anybody who's trying to time that is going to end up getting uh royally wrecked. It happens constantly. It's just never ending. Anybody that tries to time the market by buying and selling that volatility uh is also going to get wrecked. And they will just like in gambling. If you go to I've never done this because I don't gamble, but if you go to a casino, what will typically happen is you'll win just enough that you start putting a lot of money in. And then as soon as a lot of money's in, suddenly you start losing. You lose it all. and you end up way under underwater. So that's what happens with trading. It tends to work. It tends to start working just enough to get your confidence going that you think you figured it out that you figured out a pattern that you've got a glitch in the matrix. You know, you figured out a special system to get you more Bitcoin. And then immediately when you start putting real money at risk on this play, it magically stops working and you get left behind with 10, 20, 30, 40% less Bitcoin than you anticipated you would have. That doesn't mean you might not get one or two more percentage points a few times in a row, but you get one or two, one or two, one or two, one or two. You're like, I'm a genius. I've got 7% more Bitcoin. This is so easy. And then suddenly you go from 7% more Bitcoin to 30% less Bitcoin in a in a handful of days the whole time trading the wrong way up and down. So you like it's running away up and so you're like selling it at 72 and then it runs up to 78 and you buy back in because and then it starts dipping again. So you sell again and then I mean it's just happens to people all the time. Uh the other thing people do if they are sophisticated investors is they start doing covered calls and things like this which are um ways of harvesting the volatility and turning it into yield. The problem again is to do that you're giving up upside. You're basically saying hey I think Bitcoin is going to bounce between 65 and 69. So I will sell the right for someone to take my Bitcoin from me at 72. uh as an example of just a super simplified sort of futures options sort of example and you're like hey I sell the right for them to buy the Bitcoin at 72 because I don't think it's going to go to 72 for a series of months and they are willing to pay me for the right to buy my Bitcoin at 72 which I don't think is going to happen and it's like free money again it sounds great and it feels great and it works great until it suddenly stops working great and what happens there is you've sold you've sold the call option um to someone else. They are paying you for that right to buy Bitcoin at 73 or 72, whatever it is. They obviously are not exercising that right because they can buy it cheaper than that. But then suddenly the price runs to 105 and you're staring at your Bitcoin thinking, "Dang it, in order to get one or two or 5% more Bitcoin, I sold the right for someone else to buy it for me as 72." And guess what? that person is going to exercise that option and you're gonna be sitting on Bitcoin that's worth 105. They exercise their option. They pay you 72,000 a bitcoin and poof, there goes your Bitcoin and you've missed out on that in insane upside move because you were being stupid with your Bitcoin. So, don't play with your Bitcoin. Don't do stupid stuff with your Bitcoin. Don't kill don't do options futures. Uh don't sell covered calls. Don't try to harvest the volatility. Don't try to trade it. Um, don't try to buy low, sell high, buy low, sell high. Don't get cute with it. Don't borrow against your Bitcoin. Um, I mean, just don't do anything stupid like buy more Bitcoin and hold on to it for as long as conceivably possible. Same formula as always. The price is low. It's on sale. It always recovers. It always will recover for all the reasons I've covered in a million other videos. You don't have to worry about Bitcoin 2.0 competing with Bitcoin. You don't have to worry about quantum computing. You don't have to worry about money becoming irrelevant to human society. You don't have to worry about the government suddenly becoming so responsible that we don't need Bitcoin anymore. You don't have to worry about gold suddenly becoming the new monetary system of the world and nobody needs Bitcoin. None of those things are going to happen. Bitcoin is on sale. You can buy it cheap right now. And all you got to do is buy as much Bitcoin as you can and hold on to it for as long as conceivably possible. And don't do any of the stupid things that are g involve you ending up magically with less Bitcoin, which a bunch of people are doing right now. And they're all gonna end up with less Bitcoin. And it's stupid, but they do it every time. It's like clockwork. Don't do that. So buy as much Bitcoin as you can. Hold on to it for as long as conceivably possible. The formula for the for 17 solid years that has never failed. Just give it time. Be patient. All is well. Bitcoin will go on to set new all-time highs. It only takes time. Just be patient. That is what investing is. That's how you beat inflation. That's how you improve your financial well-being. That's the formula.