Thread by @CALC_Finance

➕➖ CALCulated Thinking ✖️➗

Episode #5: Systems for investing ⚙️

If habits make the person, rules make the investment strategy.

Is having a clear system for your investments the key to becoming a successful investor?🧵

1/ HABITS

Habits are the bite-sized components that make up our lives.

Good habits like eating healthy, working out and being generous create positive outcomes in life.

Bad habits like eating junk food, over-partying and gossiping create negative ones.

See @PowerOfHabitt

2/ INVESTMENT HABITS

The same concept applies to our investments.

Good habits like doing research, regular risk assessments, using cold storage and #DCA create bountiful portfolios.

Bad habits are simply those that come from having no plan and the result is getting rekt📉

3/ SYSTEMS FOR INVESTING ⚙️

The sum of your investment habits makes your system for investing⚙️

These are the rules that you as an investor adhere to reach your goals.

For example, @thedefiedge has some great ones to use as guidance 👇

thedefiedge.com/crypto-investi…

4/ SETTING YOUR SYSTEM

But don't expect to just get it right!

Most crypto veterans have been galvanised through many hard lessons, taking losses and doing things like following the herd...👇

It's never too late to adjust your system, or set one up!

https://twitter.com/CALC_Finance/status/1581933116343480320

5/ RISK, STYLE, THESIS

To start, it's worth having an honest look at what kind of investor you want to be. Some things to consider are:

👉 Risk tolerance
👉 Investment style
👉 Investment thesis

Can you lose it all?
Do you have the time?
What assets do you believe in?

6/ SYSTEM #1

Let's look at some examples:

Ash is a 9-5 weekend warrior and is willing to make a small bet on web3. She gets 'not your keys, not your crypto'.

She has spare income at month's end, but little time.

A friend told her about @TeamKujira and #IBC. She resonates.

7/ cont'd

Ash sets her own system⚙️
1️⃣ Always uses a ledger device
2️⃣ On-ramps $200 at month-end using @local_p2p
3️⃣ Uses $150 to buy native $BTC and $ETH on @THORChain
4️⃣ Send the rest over to Kujira using #IBC and DCAs weekly into $KUJI on @CALC_Finance.
5️⃣ HODL & Repeat.

8/ SYSTEM #2

Pete works for @coingecko and breathes crypto 24/7 but degen gambling is his Achilles heel.

He got rekt twice in 2022, but part of the reason he is in crypto is the thrill of the 100x (As long as he can keep paying rent).

He loves #NFTs and doesn't mind CEXs.

9/ cont'd

Pete sets his own system⚙️
1️⃣ Has 200 $USDC at month-end.
2️⃣ 100 $USDC go into @Kucoincom. He sets his 10x bets.
3️⃣ 100 $USDC are sent to @StargazeZone using @axelarcore
4️⃣ Sweeps the floor and spends time flipping NFTs.
5️⃣ Takes profits into $BTC.
6️⃣ HODL & Repeat.

10/ SYSTEM #3

Crush got into crypto in April 2021 📈

He got into #Terra, made some gains, took some profits, regularly used a ledger and even diversified a bit.

But he ALWAYS did so on a whim.

He knew his 101s, but he had NO SYSTEM ⚙️

It's Nov 2022, and Chris is REKT 📉

11/ cont'd

This means that although Crush knew what he needed to do, he seldom did.

His knowledge never translated into action because he didn't have investment habits⚙️.

According to 'The Power of Habit', 45% of our decisions are made out of habit 👇

sloanreview.mit.edu/article/are-ha…

12/ Which system do you identify with the most?

13/ TAKEAWAYS ⚙️

👉 Everyone has their own system ⚙️
👉 A simple system is better than no system.
👉 Think of your risk, thesis and investment style.

14/ This is ep #5 of our education series:

➕✖️ Calculated Thinking ➗➖

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Not financial advice.