To quote the Chappelle show scene that was quoting Rick James..."cocaine is a hell of a drug."
Well, speculative investment is a hell of a drug too!
Don't go Broke Chasing a Profit
Rollercoaster, enjoy the ride
Personally, I have been investing for 20 years. Stocks, Options, Real Estate, Crypto..pretty much played with it all.
I've learned a few things along the way.
Be Careful With That Loyalty
People love to tout how they are a maxi with something. Whether it is bitcoin, Apple stock or whatever else your flavor it.
However, as much as HODLing can lead to some nice wins over time - it can also lead to alot of missed opportunity and bag holding.
The reality is, you can still be a HODLer and take profits along the way.
When push comes to shove - most big moves in crypto for example are not met with prolonged and extended gains in the shorter term view.
When I mean shorter term I'm talking like a year or so. Think about how long bull markets last and where the majority of the move happens in that bull market.
Additionally, speculative plays...such as DeFi token launches are usually met with an initial pop that should always be used for some profit taking. Regardless of how loyal you are to said project.
You can still be invested in projects without bag holding to the full extent. Having capital to work with is vital to exploit other opportunities that pop up and you can't do that if you are 100% tied up in projects you rode down.
This is why taking some profits on price pops makes sense.
FOMO is a hell of a drug
Fear of missing out (FOMO) is a main driver on why we don't tell to book gains. The possibility of missing out on much bigger gains outweighs our fear of giving it all back and bag holding.
At the end of the day, if we still hold the coins then it can still come back, amirite? But if we sell, then we have no chance of enjoying the ride.
Pretty wild when you think about it.
Meanwhile, we wait for the next bull market.
Posted Using LeoFinance Alpha