BITCOIN DROPS, HOW I HANDLE IT

You want to know, Da Vinci, how does it feel to lose money when you bought Bitcoin at a higher price? Yes, I did buy Bitcoin when it was $1, $2, $3, and $32 and watch it go all the way back down to $2. How did I feel? Really bad. Good morning, good evening, good afternoon, wherever you are, whenever you are. Thank you for watching this video. My name is Da Vinci Jeremy. I'm in the pipe 5x5 staying alive here in Dubai and I'm going to talk about how it feels to hold through you know the bare market and how to handle your emotions in those times because honestly people tell you to buy right Bitcoin but or buy any kind of asset and what happens when you buy that asset that you are finally Oh yeah. Yeah. You know what? I see the real reason why I buy Bitcoin because you know what? It's it's limited in supply, right? It's going to be the money and you know it's transferable to anyone across the world and it no it's unconfiscable, right? I can keep it in my brain. I could do so much. This has so many few cool features that it's going to be the money. I'm going to go buy it. And what do you do? you buy that asset and it goes down immediately because you bought or it feels like that because you bought. Why? It's because you jump in and generally everybody does, not just me, not just you, but me too when the feeling tells you to do so. And I've been there. I've been there. I saw Bitcoin running up to $32 and I was I got to hit the buy. I got to hit the buy, man. It's going to go to the moon because yes, everybody's going to understand it all at the same time and buy Bitcoin and then there won't be any left for me. It doesn't work that way, right? Knowledge takes time to disseminate across to people for them to understand what Bitcoin is. And some people have to get burned and some people have to learn, right, the hard way. That's just the way it is. That's the market. So with that said, don't be the person who learns the hard way, right? Be the person who dollar cost averages into Bitcoin. They don't buy all lumpsum. Yes, I said yesterday that you should go like buy $1,000 worth of Bitcoin, but I also said dollar cost average. Yes, Bitcoin. I also said Bitcoin. I'm betting against Bitcoin. It's going to go down, but that's only temporary. And if you're thinking after watching that or hearing this that you should buy when it goes down, you're wrong because I don't know if it's going to go down. That's the truth. I can only speculate on that and that's what I'm doing, right? I'm only playing the odds. Now, is the odds in my favor? Yes. At least I believe so. But it's not in your favor based on the fact that you are trying to buy for the long term. Now, with that said, this video is about how how to feel, how to manage your emotions when you do buy even just $100 worth of Bitcoin and watch it go down. You look at your you look at your number on your screen and go, "Oh my god, I can buy so much less." That is the feeling that you have. Oh my god, I should have waited. Oh my god, what am I doing? This is this is all the money I have. And I I've I've know the feeling and I've seen it in other people as well. In one course that I was learning how to trade, this one person just could not take any losses. He had about $5,000 and that was his whole life savings and he wanted to learn how to trade. And I told him at $800 to just put everything in Bitcoin. And this was in this was this was in uh 2016, late 2016, just before the bull market, right? And he said, "But if it dumped to $400 and I said, you know what, you're right. It could but it will go a lot higher." A lot higher. I didn't know it was going to go to 20,000 at the time, but I knew it could also go down and all but in the end up at 20 at 20,000 or even more sometime in the future. I didn't know when now he was too riskaverse, meaning that any losses hurt him any even $20. So he couldn't trade and he ended up leaving leaving leaving the um the group. If that is who you are, you'll never be able to invest because investing does mean you will take losses for a time. Period. Doesn't matter if you put it in the stock market, doesn't matter if you put it in Bitcoin, or even if you put it into dollars, you are losing. You just don't see it. And you're willing to accept that. You're willing to accept, I don't see the losses. Why? Because you're thinking about spending tomorrow. And that's the problem. When you do see those losses, right? You're thinking about what you could buy today that you're not buying. And the same thing happens when you see the winds. You're looking at what you could buy with all that money. Let's just say Bitcoin goes up and you see your account go up by 60, 70, 30, or even $100,000. You're only thinking about what that $100,000 represents. It represents a car, maybe it represents, you know, um a year's yourself salary. whatever it represents to you, you're thinking about that when it goes up and it also does the same when it goes down. But if your focus is not on the short term, both cases don't matter. However, the feeling is still there. That's true that they don't matter both cases, but the feeling is still there. The feeling of loss is still there. How do you manage that? How do you get over the feeling like, oh my god, like when I w lost when I watched Bitcoin go to $2 and I bought at 32 and I even told people that I bought the top and it watched it go down, they would said, "You didn't sell?" No, cuz I don't want anything else. I want this. I know that it will be money one day. But nobody knows about Bitcoin. It's another thing. Yes. Back then in 2011, no one knew. Very few people knew what it was. They just knew it was just another asset that was probably a scam. That's what they thought, right? And so even though I understood it differently, they saw it as just, hey, you know what? This is real money. But Bitcoin not real money, paper money, whatever you get is real money. And that is the feeling that I understand because I felt it too. But then I knew that it was not real money that I was that that paper money that I was losing. That's not real money. Real money is the Bitcoin because there's no there's a fixed supply. And so I was able to hold through and even buy at the $2 bottom and I continued to buy. And so whilst there were still fluctuations in 2012 and most of 2013, I saw it rise to $1,300 from those from those lows. So with that said, you have this advantage now today. Yes, Bitcoin will probably go down when you go and buy it, but you need to understand that feeling. That feeling is just temporary. It will go away and Bitcoin will move higher and then you'll be like relieved. So, think about the relief that's coming. When you do feel that, oh my god, I've lost feeling. There will be a time just like everything else like if you go to work out at the gym you're and for the first time you're going to feel pain but after a while it'll go away. Every motion that you have is only temporary and same when it comes to trading in Bitcoin or even just buying Bitcoin for the long term. Temporary loss is temporary. Okay, that said, if you're thinking, "How do I know they'll go higher?" We've already discussed this yesterday, right? Please watch tomorrow, yesterday's video. I've already gone over that. Okay, with that said, I need to go over to here and I'm going to show you this video, but before I do live, >> right, um, head over to the descriptions and it's below and hit the the like button for me. also hit the subscribe and then if you want you can actually get any of these articles that I'm going to be this one article and the video that I I'm going to show you. The first article I want to talk about is Bitcoin is so volatile it's riskadjusted return is worse than stocks. Now this article was written in 2017 near the end of 2017 just so you know and whilst this um person was right in a sense because Bitcoin had moved so heavily I remember in August of 2017 the price was around $2,000 and I remember hearing somebody saying that they're going to go allin with $20,000 into Bitcoin and I'm like what this peak and yet Bitcoin went on to go to almost $20,000 and so we saw that in 2017 huge move near the end and that as it moves so fast obviously your risk is gets lower your risk is pretty low that you know what you're going to you're going to make some money right as prices go higher that's just logic right and so this is saying that you know the stock the riskadjusted return on stocks is 11 to 13%. Now I'm not going to go into the the numbers and verify his numbers and I'm going to just take it as a grain as the truth right as uh and I was saying that the that you know with the US election Trump taking presidency back then right um and and things were going uh crazy. I remember even Jamie Diamond coming out and saying, "Hey, if anybody uh in my company buys Bitcoin, they're going to get fired." Meanwhile, the company itself was buying Bitcoin in Europe. So, it is it was clear, right? Because, you know, it's it was not a a a normal asset. So, they can do that. They can lie to you on TV and then do something else, right? That's allowed, right? If it's not a a a that's not their stock and it's not a stock that they're selling or asset that they're selling, right? So, they can do whatever they want. And it's it goes on to say in fact, Bitcoin is so volatile that the average Bitcoin investor will have done less well than some someone who puts the same money into stocks in the post-Trump period. He wrote he wrote in a recent client um client recent to note to clients the S&P and the the Euro stocks both produce far higher risk adjusted returns than Bitcoin in the same period. I am not sure what period he's talking about. Um he's not clear on that. If he's talking about even just the same year, there's no chance of that. If you bought at the beginning of the year at the and sold at the end of the year in 2017, there was nothing that outperformed Bitcoin. Absolutely nothing. Right? So, uh I don't know where he gets this this risk adjusted percentage. Um, even as Bitcoin as he wrote this article in the end of the year, Bitcoin was around 16,000 $15,000 and and you couldn't you it was still had outperformed anything in a year's time, two years time, three years time frame. It does. It didn't matter when you bought except if you just bought on I think it was the 17th was at the time the 17th of um of December when the ETF came out. I mean not ETF, sorry. It was the the CME futures came out at the time at that time and that actually was the top. In fact, um when I learned how to trade the one of the things I learned was that any key market event that looks like it's super bullish for that asset that's coming out will be the end of the bare market as as it's going higher. And like clockwork as soon as it opened it was only down. Only down. Why? Because they were able under on those those particular assets, right? Those that particular asset or or um trading mechanism, you can sell as many Bitcoin as you want, even more than the Bitcoin that there is, right? And so why is that? because it's a cash settle system. And you could say, well, wait a second. Yeah, that cash settle system has nothing to do with actual Bitcoin. Yeah, that's true. That's true because it's not like silver or gold, right, which follows that price of the cash the uh the comx system. It's it doesn't do that but it allows traders to use platforms that they're familiar with and at the same time right they can push the price down by buying asset and pushing it into market and selling it buying the asset beforehand and selling it into the market which they probably did. It's probably JP Morgan did exactly that. All right. And with that said, um I also told people back then to not buy. And and you know what? Honestly, I remember I remember how it was. There were so many people telling me that they're going to buy Bitcoin at $17,000. And I was like, don't do that. Don't do that. Right? That I had to do this video here. Let me show you. I think that it is possible that Bitcoin can go higher and it may go higher, but really uh I I I think people should uh should should not be buying Bitcoin at this price. >> Nope. At 17,000, no chance. That was ridiculous. Absolutely ridiculous. But people were buying it at these ridiculous prices. And I remember this one lady actually coming to my office and asking me to give her Bitcoin, right? Um, at these prices and I'm like, I don't even want to sell it to you because this is the top. I told her, there's no chance that this is going high. I mean, I don't know that for sure, right? But I think there's the chances of this going higher is very very limited. And she refused because she thought, "Well, I need to protect my retirement." Yeah, but you don't do it this way. I said, "But there's no stopping her." She said, "Either I help her or she'll go find somebody else." So, I sold it to her. It is what it is, right? And so let me let me play another clip. >> Yes. Um we don't know where the top is. Can't say for sure, but based on all the times I've seen Bitcoin rise and fall. This feels exactly how it feels when we're at the exact top and everybody's euphoric. Everybody wants to get in. The media is all over it. We have like um the TV show The Big Bang Theory talking about it. I mean, it's it's a little bit ridiculous now. >> Yeah, it was absolutely crazy. Big Bang Theory. There was even like other TV shows out um um talking about it, pretending like there was like Mr. Bitcoin uh was in this legal show, right, where they were they're trying to to capture Satoshi in this this this uh I forget what the name of the show was, but anyways, it was it was absolutely ridiculous news and and um media coverage on Bitcoin that it was clear something had to give. I I cannot uh endorse someone buying bitcoins right now and hoping to sell higher. So that's that's my comment and um for yeah so I had to I had to tell people that and um very few people listened and I hope you listen today because I'm telling you right now to buy because we're at the bottom. We're not at the exact bottom. I think the exact bottom was probably 59K. Even if we don't, even if we go lower, it doesn't matter. The point is now's the time to start buying Bitcoin. And just like I was saying back when it was not time to buy Bitcoin, now is the time. It's the complete opposite. It's the time to buy. You need to share this video with your friends and family members. Let them know what is going on. Have them really sit down and understand Bitcoin when prices are low, not when prices are high, not when it's hyped up. And help them understand that even when prices go higher, they may need to may want to just only sell half and to have that plan in place. So when they are going, "Oh my god, thank you very much. that made me so much money. Most of them are only concerned about the dollars. And that's okay for now. You want to convince them that, hey, this is the plan. Sell half. When it goes higher, when it goes to when it starts to go rocket higher and you want to get out, sell half. Watch what happens to the rest. You get your money back or maybe even more. Okay? Leave the rest. You didn't you didn't earn it. You didn't do anything for that. Right? So hold that and watch what happens. Help them understand more about Bitcoin as they hold on to the rest of that that builds Bitcoin Stash and they will thank you for it. Okay, let's go on to the charts, right? And see what we see here. Um again, remember what I said yesterday. I I mean I did this yesterday and and um I'm sure there was people who are saying you don't know what you're talking about. You said it could go up, break higher or break lower. And and and I'm like okay dude I've said this before. It can go sideways but I that's not [laughter] not any of the options I said it was going to do. There's only two ways it's going to go. Meanwhile, there is a third way. [laughter] There is, right? We could go sideways and and then I'll be completely wrong both ways. Right. So if Bitcoin if Bitcoin stays in this this area before the election all the or say it's in here stays up here right above around 80k around the 80k or in here I'm wrong but here's what I'm thinking Bitcoin will either continue breaking higher or it's going to break down and go at least touch the touch the 765 level or lower. Those are the two things I predict Bitcoin is going to do. And most likely it's going to go down. And then when it does go down, you will not have enough time to buy the bottom. Why? Because most likely you're not set or you not have your money in position. You do not have your your um your cash in position. You do not have a plan to you don't even have probably you don't even have a plan to to go and say, "Hey, I'm going to go and put a limit order." You don't even know what that is, do you? That means you can actually say, "I'm going to buy $100,000 is 765." And if you did that, you'd be dumb. Because even if it hit 6765, you only got lucky. That's it, right? Why? But you're betting. Yes, but it's a small trade. The amount of money that I will make is insignificant, right? It's a trade, right? That's what a trade is. There's So, the amount of money that I could lose is insignificant. In fact, I'm going to probably move my stops to break even, right? That's how trades are, right? This is not an investment. This is a trade, right? That's what it is. What's the difference between a trade and an investment? A trade is predicting price action in the short term, right? You say, "Well, I'm predicting it in the long term." Yeah, I guess. But you're not a trader. You are a long-term investor, right? Keep that in mind. Okay? So, if you are a trader, you can head over to x.dj15.com. Links in the description below. And you can check out by bit, my second favorite exchange. They are providing a great service. They're really easy. Everyone can use them. Even if you're in the um the land of the not so free, home of the not so brave, unfortunately, right? If you want over there, you could actually buy you could actually set up an account if you just use a VPN and say you're I don't know in Dubai [laughter] or anywhere else, right? Um and uh you can use a we you set up your WEX account and start trading. you deposit some money and yeah and also right um you could also use ID right I'm going to share this tomorrow the ID that you can get that could work on any exchanges if your country does not allow you to trade on a specific exchanges yes it is possible guys it is possible and we're going to show you that tomorrow. Okay, so make sure you hit subscribe and be a part of that. Let's take a look quickly at Ethereum. Yeah, looking like we are still breaking down. We're below the 13 EMA. Not no um positive action there. Same with Salana. Um we tried to break higher and nope. How about no? [laughter] We we've broken down uh back down on Salana on the daily and and the 4 hour is also saying good night sweetheart. It's time to go. Um sad situation. Now I could be wrong of course all this can reverse very easily as it can actually dump. So it is a trade. It is not guaranteed right. Um, and the real guarantee here, well, not exactly guarantee cuz nothing is really guaranteed. You know what? You're not guaranteed to live tomorrow, right? So, leave it alone. The odds are that you are going to live tomorrow. The odds are Bitcoin will be a lot higher a year from now, two years from now, and three years from now. Okay, that is the odds. The odds are a lot higher. the same odds that you're going to live in a year from now, three years from now, two years from now, you're going to be alive. Same odds. Okay, those are pretty good odds, so you might as well bet on them. [laughter] All right, thank you for watching. I hope to see you guys next time. Ace.