Things are just getting started. Keep this idea in mind as you go through this article.
Everyone wishes they have gotten in Amazon at $7 or Tesla at $18. Who wouldn't have wanted Apple at $10?
Just think of all the money you would have today? A small amount of money invested in these companies 20 years ago, and people would be sitting on a pile of money.
Or would they?
This is where things get tricky. Often, I use an exponential chart to illustrate how things can go. Here is a chart that illustrates something similar although looks like asset pricing might.
Source
Looking at this chart, a move from 10 to 22 is a pretty big jump. Who could fret about taking profits there? That is a terrific gain.
Of course, as we progress along the chart, the idea of selling at 22 when the chart reaches double that seems absurd.
Yet isn't that what people do every day?
So, going back to the companies I mentioned, sure it would be great to have gotten shares at those prices. However, the only way it will be a massive gain is if one is still holding them. A far more likely scenario is that people sold their shares along the way. We all have a point where something is too good to be true.
But is it?
Here is a exponential chart with 30% growth.
Source
Looking at this chart, as we progress along, there is the temptation to sell at the 20 mark on here. That would put it at roughly 200. If one bought around the 10 mark, that might be 10 or 15 on the vertical scale. That is a massive gain.
However, once again, we see the majority of the move was passed this point. It shows clearly, what looks linear actually ends up parabolic.
The reason I bring all this up is we have some stuff that is moving. Bitcoin exploded this week as did Ethereum. LEO has a bunch of people excited. There are even some who are starting to pile into HIVE in anticipation for a run.
With those tokens that moved, especially BTC, the tendency is to want to sell it. After all, a 30% gain in a couple weeks is nothing to laugh at. However, this is unwise if a parabolic move in ahead of us.
Naturally, there is no way to know what will unfold. The decision one makes is what will determine whether there are incremental or massive gains.
Moves of this nature happen in the stock market, albeit on a rare basis. In cryptocurrency, however, it is far more common.
Massive gains can be in your future if you have the ability to stay in there and hodl through the tough times. At the same time, it is tempting to unload and take a little profit.
In the end, the massive wealth is created be letting the runs go.
Food for thought.
If you found this article informative, please give an upvote and rehive.
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Posted Using LeoFinance Beta
This is the art of investing in crypto. One should have future views about a project. Like leo and other side chain tokens. I sometimes doubt to put my small money on them but other players put big cash on them and now they have seen the on goin harvest. I lost the game at that play but I will learn from my failure. I buy other side chain tokens beside leo
Posted Using LeoFinance Beta
When it comes to the stock market, it would be foolish to ignore NASDAQ at this point.
Posted Using LeoFinance Beta
Absolutely. In fact, most of the easing ends up in technology eventually, thus that is a great index to hold long term. It will likely outperform the others.
Posted Using LeoFinance Beta
If you realize what's going on in tech, you must realize the financial implications of that.
Posted Using LeoFinance Beta
Yeah sometimes people wishes they can put their hands or go back in time to buy into something that's become big now, I mean look at BTC. O think going forward it's imperative we become predictors, analysers and thinkers. No one knows the future and that's why we gotta take risks.
Posted Using LeoFinance Beta
True but think of all those people who sold at $3,000 for a nice profit.
Where would their holdings be today?
Posted Using LeoFinance Beta
That's actually true, well we can never get it completely right with crypto.
Posted Using LeoFinance Beta
@taskmaster4450le, We never know which investment will turn into Giant Pillar. It's really important to see the Potential Vision. Stay blessed.
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