Are You "Whaling" In?

taskmaster4450le (81)in LeoFinance • 4 years ago

Do you want to build enormous wealth?

If that is the case, we might have a solution for you. It is something that most overlook since it is rarely discussed. Yet, in this article, we will cover an approach that can really make one wealthy.

Of course, wealth is a relative term depending upon where one is from. That is why I prefer the phrase life-changing money. Either way, we are dealing with a financial approach that can radically change one's life.

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Whaling In

On one of the past shows of CryptoManiacs, we had @nealmcspadden on. He stated something that we often discuss although he used a different term.

The idea is to "Whale In".

What does this mean?

Basically, it is the idea that if you correct, you want it to make a difference. One does not want to be right about the judgment about a particular project and net only a small gain.

The solution to this is to Whale In.

Another way of saying is "Go Big Or Go Home".

This is not endorsing reckless behavior naturally. Nobody is saying to blindly toss money around like one is playing the lottery. Research, analysis, and sound money management principles should always be applied.

Nevertheless, we have to identify that which we believe to be terrific prospects and get enough stake to ensure that is becomes life changing.

Bitcoin Is A Good Starting Point

As we discussed on the show, Bitcoin is something that holds great interest to us. It is one of those options that seems to have a terrific risk/reward. While there are some other tokens that could have higher alpha, none are as safe as Bitcoin. The downside risk with the upside guarantee exceeds other tokens out there.

When people ask me what to do first with cryptocurrency, my answer is always the same: get yourself some Bitcoin.

To me, this is an important foundation upon which to build. When it comes to the standard in cryptocurrency, it is obvious Bitcoin is that.

Does this mean that Bitcoin will make one wealthy? That naturally depends upon how much one has. However, it can serve as a terrific baseline from which to stack. If the token sees a 10X, then one can enjoy a significant jump in worth.

At the same time, there are more avenues being developed where the Bitcoin held can be staked for additional return. Decentralized Finance (DeFi) is only growing and Bitcoin is a basis for what is being created. In fact, it is reasonable that Bitcoin could become a major asset for collateralization.

That would mean just holding it could open up additional avenues of revenue.

The Anti-Diversification

Many financial planners submit to the idea that diversification is a good idea. To this I say "hogwash". Diversification only serves to keep people from enjoying life changing money.

Why do I make this point?

It is rather simple really. Look at the richest people in the world and, for the most part, each is identified with a particular company. They were not "diversified". Instead they were all in with their financial future. Obviously, the fact they are on the list means they were right. That is really Whaling In.

The concept of diversification is to reduce downside moves when markets plummet. However, we all know that when markets starts going, most everything gets taken. Sure your "loss" might be less but it also restricts the upside.

Here we are proposing the exact opposite. Accept markets for what they are and look long-term. This will remove the moves that, over a macro period, tend to be minor blips.

Thus, if you really want to turn your financial future in a different direction, identify 4-5 assets that you believe strongly in. Do the research, make sure to monitor for any changes, and begin to establish a position.

Over time, your goal is to Whale In to these assets. Get yourself a significant stake so that, if they do explode over the long run, the result is life-changing money for you.

Keep Returning To The Core

Part of this strategy will, inevitably, include dollar cost averaging. The key is to keep adding to your holdings as time passes.

What this means is that other assets can by utilized for gain, but once sold, take the profits and invest in one of the core holdings. This is your wealth fund. Trading or other activities are simply means to acquire more capital to add to your stake.

This can be any flavor where one has the potential to see outsized returns. Obviously, dividend stocks might be solid investments. However, unless you have a lot of money, the moves are not going to be that great. We are after life-changing money.

For example, Apple or Amazon in from the 2005-2010 period are prime examples. Both companies were solid by that time. Yet, we now know the upside was enormous. Getting into Apple before the IPhone release would net a tidy sum. Of course, the story for both companies might not be over.

Is there a degree of risk involved? Of course, there are no guarantees. One is going to have to slide a bit further out, either into tech stocks or crypto, to realize the opportunity. High multiple returns tend to be on those things the market deem risky.

There is a chance that, if one does his or her homework, the risk can be reduced. Much of the world looks at Bitcoin as risky. I do not. To me, that is one of the most assured returns in the world. While there is a chance I could be totally wrong, I feel very confident that enough others feel the same way, putting a major floor under the price.

Whatever the option, be sure to focus upon gaining as much as you can. Having 4 or 5 assets that one keeps adding to will ensure that gains in even 1 or 2 could provide a different financial life.

The key is to Whale I. This sounds scary but it really is not. Find what you are confident in and keep amassing a position.

Are you Whaling In?

This is not financial advice. Always due your own research and be sure to get whatever professional advice.

If you found this article informative, please give an upvote and rehive.

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