When markets soar, judgment slips — here’s why.
By Chris Vermeulen, Chief Investment Officer, TheTechnicalTraders.com
Recently I spoke with two self-directed traders and investors on the phone — Dan and Jerry. Both were highly intelligent, professionals at what they do, and had built up a substantial amount of money to manage for themselves and their families’ inheritance.
But here’s the thing…
Even though Dan was a highly successful entrepreneur, semi-retired in his early 40s, and managing his own money, he was still struggling — suffering from a massive drawdown and loss. He bet against the market using leveraged inverse ETFs with a seven-figure position. Right now, he’s down more than most people even hope to have saved for retirement.
Jerry, on the other hand, went to school, became a top-level lawyer, and money isn’t an issue for him either. But he’s nearing retirement — and he knows it’s only a matter of time before the stock market and economy decline. He doesn’t want his retirement account to suffer another 20–55% loss and waste another decade with no real growth.
He’s lived through this before — multiple times. He told me how advisors just sat on their hands while his account sank, repeating the same old phrase: “It’s time in the market, not timing the market.”
That line didn’t just make my blood boil — Jerry practically clenched his fists when he said it.
While advisors like to knock technical trading methods — like what I do — the truth is they don’t manage positions. They don’t manage risk. They simply hold assets and repeat the Wall Street mantra: diversify, buy and hold, and ride out the storm.
I’ll give them a little credit though. They’re right when they say most self-directed traders lose money trying to “time the market.”
But here’s the difference:
I don’t time the market. I follow the market.
That’s a massive shift in how you operate.
While most people try to pick bottoms — only to watch prices keep falling — or they try to pick tops — only to watch the market keep rising without them (and that’s when FOMO hits, which studies show feels even worse than a loss)…
…I wait for the market to prove it’s changing direction. Then I move.
Let’s face it:
97% of self-directed traders and investors lack the discipline to build or follow a system.
They let emotion take over. They trade what they hear, think, or feel — not what’s actually happening in price.
And that’s what I help fix.
You won’t catch me guessing bottoms or tops. But you will see me moving into new positions after an asset proves it has bottomed, has turned around, and is in a new uptrend.
And if you’ve followed my YouTube videos, you know that when price stalls or starts breaking down, I quickly step to the sidelines. I wait in safety — collecting daily interest and monthly dividend payments — until a new opportunity sets up.
My point is this:
Even the most logical, educated, sharp, and successful people get crushed when they step into the markets and try to manage their own money.
So if you’re one of them — don’t beat yourself up.
(Though, let’s be honest — we all have things wrong with us in other areas… but the market doesn’t care about any of that.)
And on the other hand — if you aren’t the sharpest tool in the shed, struggled in school like I did, needed special attention to read, write, focus, and communicate — and were told you were “dumb” or “stupid”…
I’m living proof that success is still possible.
If you work hard, refuse to quit, and are determined to prove the doubters wrong — you can absolutely win. I’ve done it. And if I can, anyone can.
With enough practice and brute force, you can even fit a triangle into a square hole.
With that said, let’s get into some of the real lessons, painful experiences, and costly mistakes that others — just like you and me — have made when they thought they had the markets figured out… only to get beaten down hard (and likely beaten again when their spouse found out how much they lost).
Here’s a sample of what I do and how I follow the markets:
Every bull market hides a lesson — but most traders don’t learn it until it’s too late.
At first, they’re cautious. Strategic. Measured.
But as the market climbs, so does their confidence. Losses feel rare. Gains feel easy. And suddenly, the rules don’t seem so necessary anymore.
They stop using stop-losses.
They start chasing tickers.
They tell themselves: “I’ve got this.”
Until they don’t.
Bull Markets Create the Illusion of Mastery.
When markets rise for long stretches of time — like we’ve seen in recent years — even traders without a plan can look like pros.
Every dip gets bought. Every trade seems to work. It’s green on the screen, and dopamine in the brain.
But what they’re feeling isn’t mastery — it’s momentum.
And the danger is that many investors start confusing the two.
They believe their success is skill-based — not realizing they’re simply being lifted by the rising tide.
That’s when the most dangerous thing happens: they stop thinking about risk.
The Emotional Cycle That Destroys Wealth.
Here’s how it usually plays out. If you’ve been trading long enough, you may recognize yourself in this:
Confidence. Gains are rolling in. Feels good.
Complacency. You loosen the rules. “This one’s a sure thing.”
Denial. The dip starts. You tell yourself it’ll bounce.
Panic. It doesn’t bounce. You freeze.
Regret. Your account is bleeding. You’re back at square one — or worse.
This isn’t theory.
One member of our community, Frank — a dentist who had managed his own portfolio for over a decade — once told us:
“I thought I was brilliant. My tech positions in 2021 doubled. I didn’t even think about selling. By the time I realized I needed to get out, I had lost half of what I gained — and then some. I wasn’t managing my money… I was just riding the wave.”
That wave crashed — and took years of progress and confidence with it.
The False Safety of Green Screens
Bull markets reward risk. They train you to expect rebounds and punish caution.
The screens are green, so it feels like you’re safe.
But it’s not safety. It’s exposure.
And when the market turns — as it always does — you’ll find out whether you had a strategy… or just got lucky.
Here’s a brutal truth we’ve heard from investors after major losses:
“I used to say I was fine losing 10% because I could make it back. But I didn’t stop at 10%. I watched it fall 15%, then 20%, then 40% — and I still didn’t sell. Because I didn’t know what to do.”
Most investors don’t fear losing money.
They fear not knowing what to do next.
The Difference a System Makes
That’s why Asset Revesting exists — to remove emotion from your portfolio decisions.
We don’t guess. We don’t chase. We don’t hold and hope.
We use price, volume, and trend data to determine when to step in, and when to step aside.
We call this being a tactical investor — and the difference is night and day:
| Emotional Trader | Tactical Investor (ACS) |
| Buys based on FOMO | Buys when trend confirms |
| Holds through pain | Exits on clear reversal |
| Second-guesses everything | Trusts pre-set rules |
| Obsesses over headlines | Ignores noise — reacts to price |
| Watches losses mount | Moves to safety, then reinvests |
| Never sure what to do next | Knows exactly what to do and when |
Why Some Investors Say They Wish They Joined Sooner
You’ve probably heard some of these stories before — or felt the same things yourself:
“I used to think I was fine on my own.”
— Alan, retired military
“Then I watched two years of gains disappear in 2022. I didn’t sleep for a week. That’s when I knew I needed a strategy.”
“I tried to follow Chris’s free videos for months…”
— Lisa, pharmacist
“…but I couldn’t keep up. I was always a step behind. Once I joined, I stopped guessing and started seeing real results.”
“The best part isn’t the returns. It’s the peace of mind.”
— James, small business owner
“I know what to expect now. I know what to do. That’s worth more to me than any 20% gain.”
These aren’t outliers. They’re typical of the shift members experience once they stop trading their emotions and start following a real system.
You Can’t Build Wealth If You’re Always Repairing It.
This is the core issue: most traders spend more time recovering from losses than compounding gains.
They make money in bull markets…
…but give it back in bear markets.
Then chase new trades to try and recover faster.
And end up doing more damage.
That cycle — of building and breaking — is why so many portfolios stagnate for years.
Asset Revesting breaks that cycle.
We don’t aim to beat every rally. We aim to protect during declines, and compound during advances. That’s the path to long-term, low-stress growth.
The Real Cost of Waiting Too Long
One of the most common things we hear from investors is this:
“I wish I joined sooner.”
Why?
Because the value isn’t just in the gains. It’s in everything else:
- No more obsessing over headlines
- No more guessing when to sell
- No more sleepless nights after a drop
- No more emotional trades that sabotage progress
And for those who join just after a big loss?
They tell us the same thing… but with regret.
Final Thought: Are You “Feeling Smart” — or Actually Prepared?
The next time the market is green, and everything feels easy…
Ask yourself: Am I winning because I’m following a repeatable strategy?
Or: Am I riding a wave I can’t see coming — or ending?
Bull markets make traders feel smart. Bear markets expose who really had a plan.
You don’t need to lose big to learn this lesson.
You just need to decide — right now — whether you’ll be the one who reacts late… or the one who’s already positioned for what comes next.
Chris Vermeulen
Chief Investment Officer
TheTechnicalTraders.com