Financial life lessons I wish I learned earlier in life. Mind the downside risk. Lose 20% you have to make 25% to get back to even. Lose 50% you have to make 100% to get back to even. Feeling a bit of a thread here.
1/ It's hard to think about the long term when watching an asset that re-prices itself every millisecond. Write down your investment philosophy. Don't have one, start now. Buy a notebook, if you can't afford one DM me your address. Every day write your investing principles.
2/over time your investment philosophy will take root in your heart and mind. Keep writing though. Don't ever stop. This will be your bible in the darkest moments when you want to throw in the towel.
3/rules over emotions, If I could just impress this upon you early as you begin your soul searching journey. Create rules. If you enter a trade, why, what and when are you going to exit that trade. If you decide to change a rule, why, what and when are you going to do it.
4/ the more you force yourself to write these things down, the more accountable you will hold yourself when times get tough and you want to change course. EG. I have a personal rule that if I didn't write it down more than X days ago, I am not allowed to implement a change. X
5/ In this case, X varies based on how extreme the change is.
6/ Challenge yourself to quantify your subjective decisions. eg. "I'm a 6 out of 10 on thinking this will work" write these thoughts down and keep track of your ability to judge the subjective nature of your decisions.
7/ When in doubt, spread it out. If you don't know whether or not you should invest in this stock or that stock, split it up, overweight the highest probability stock based on your "subjective ranking" system described above
8/ Continuing on the, when in doubt spread it out. Suppose you want to invest in a single asset. If you are unsure of timing, buy half now, and set up a plan to buy the rest. eg. buy 1/2 now, buy remaining 1/12th every month for the next 12 months. If this doesn't do it for you
9/ Buy remaining 1/12th every month for next 12 months, but buy 1/6th on months when asset is down by greater than X% and 1/24th on months when asset is up by more than X%. Again, write it down and stick to it.
10/ If dealing with other people's money and emotions, this becomes even more critical. Explain to them your thinking, don't let them blindly believe that you are brilliant and have the sense of God. It will fail you more times than not. Process over Mysticism.
11/ Okay, that's all for now just had to get that out of my head.
And if you are investing in #cryptoassets the above is all the more relevant. If you are going to survive, you have to have an investment philosophy.
And if you are investing in #cryptoassets the above is all the more relevant. If you are going to survive, you have to have an investment philosophy.
cc @DeadCaitBounce @TR401 not exactly the thread you were looking for, but it has a lot of the same vibes
• • •
Missing some Tweet in this thread? You can try to
force a refresh
