This question is more for the ladies, than the men:
Have you ever been hit on by a desperate person?
How'd they fare?
Did you say,
"Ooooh, desperation! Perfect!! What a catch!!!"
Note to self:
Desperation is not a good bargaining position.
But...
Is it a good investment condition?
I will give you a hint:
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Fuck no.
But, the thing with crypto is, it is pretty much all inclusive, so anyone can give it a go with a few dollars - but should they? Yeah, a few dollars isn't much for most people and they should, but for the most desperate, are they going to be improving their lives or, making them worse when they are making decisions from a stress position? Not only that, from a frame of desperation, not only are bad decisions more likely, but bad outcomes have a far greater impact, as it isn't money they can "lose comfortably" and not worry too much about it.
As they say, don't invest what you can't afford to lose, but I somewhat disagree with this, as there is definitely mindset and emotional development that takes place when there is skin in the game. However, the caveat is that if there is "so much skin" that failure is not an option, the amount of stress it creates is likely going to be difficult to contend with and since this is crypto, the swings are going to be painful.
You know those days where the market drops 40%?
How do you feel?
For me, I get up, brush my teeth, go to work and perform my day-to-day, unconcerned with the loss of a couple years salary. The reason is, I don't need it - at least not right now at this moment, which means all losses are technical. The only time a loss is made is when a hold becomes a sold for less than it was bought for. However, you will find that many people who are successful in crypto, held well into the red, only to two years later be incredibly in the black.
And once you've had black...
But, it doesn't last, does it?
Prices that is.
Prices from the highs will always regress to the mean and often, well below the mean, so it doesn't even matter if a person is up in value in regard to what the initial spend was, a new ATH becomes the new baseline of value, so if it was bought for 10, pumped to 100 and drops back to 50 - it is felt as a 50 loss, not a 500% gain.
I know people who have got into crypto and with "relatively" small amounts, are unable to sleep because the market is pumping or, crashing - they are so affected by the swings that they are unable to function well doing their daily tasks and, they make mistakes, pushed to sell at bottoms, sell too early, or hold out of fear.
Fear is not a good bargaining position either, but feigning confidence might fool others, but not yourself. This is why I believe that while anyone can invest into crypto, I wish more people would do the risk assessment before, and this isn't on a project tea, usecase or fundamentals - it is on themselves.
The biggest investment risk factor is us.
If we are unable to control our emotions, if we want something too much, if we are needy, time-sensitive, fearful, stressed and desperate for an outcome, we are likely in for disappointment and a world of pain.
It is Murphy's Law.
There are plenty of resources that look at investor mindset, but I wonder how many people take it to heart and actually evaluate if they are the kind of person who is able to live that life. I suspect, not too many, which is why there is so much cheerleading on the way up, and so much whining on the way down. The shilling stops and all that talk of "looking long" is lost as price crashes and people fear they will lose it all, so dump what they hold, believing it is better to get something, than risk being left with nothing.
How I see it is, while most of us can invest, it doesn't mean we should invest - at least not before we have reflected on whether we are willing to take the responsibility for our decisions and, wear the consequences. Sometimes those consequences will leave us feeling we are trapped in a nightmare - sometimes though it
Out performs wildest dreams.
Just remember, it can go either way - so don't go in blind, expecting the path to be straight and smooth. Otherwise when it gets rough, you may just get lost in the crypto wilderness and start to panic.
Desperate is not a good look.
But it is an easy target.
Taraz
[ Gen1: Hive ]
Posted Using LeoFinance Beta
Me I did and that's why I don't XD
and then the downside of THAT is people telling you that you absolutely could if you just tried harder/put more effort into learning -_-
Interesting conversation with someone or reading more "interesting" crypto articles? :)
You can do it!!
Good question :)
It was from observing the comment section of a Hive post on LEO and then a bit of a discussion with @meesterboom on Discord about it. :)
Great sentiments, parallels and advice here again.
Investing, especially in Crypto when you are desperate is like desperately taking the mortgage payment to the casino. Strategy is one thing but there is some luck and other things out of your control at play. If it was easy and profitable, everyone would be doing it.
Once you go green, red is just around the corner so be ready to ride it out!
Precisely. Lose the farm. People stare at the charts, thinking they are good enough to beat the chart builders.
This is why that trend is so important - if it is moving up, the red floor will slowly move upward too, so the loss continually gets backdated and replaced by a gain.
Some great advice for all asset classes!
I feel this way about my sharemarket holdings - they'll just do what they do, and any dips just means when dividend reinvestment time comes around, I stock up more at lower prices.
I'm yet to make much of a splash in the crypto space, but I'm learning more and more.
Hope you're well mate, have a good one. Tim
If you believe in the future of an asset being higher than today, buy. Same for crypto. For example, if you think BTC will go to 100K in the next two years, 45K is cheap. if you think 100 and it is currently 98, maybe not :)
Hopefully more Australians start investing into crypto and look long. There is so much potential in Web 3 and the gig economy for it, but most are looking at token speculation at this point.
Definitely look at it as a long, long game... I think more about a 2030 portfolio instead of a March portfolio because the markets are so volatile but things "tend" to trend upwards.
The same time in the market is better than timing the market, and I think this is true... not because things gradually move up, but the price jumps and dives are so sudden and there's so many supercomputer algorithms against you that it's much better to think in years and decades. Compounding is an incredible tool if you can think long term.
That trendline is solid - so as long as we stay "trendy" all is well :)
Compounding is awesome, but it isn't intuitive - so we favor our lizard brain fear and desire behaviors.
Btw... I hate writing with American English - but my PC is set for it for work! Have you got used to it there?
No, you're right... I need to get rich immediately I don't have time for compounding investments.
Haha, it's something I struggle with daily. I write a word spelled correctly and then it gets a squiggly line under it. If it's for something official I'll change it but if it's just an email or something then I'll stubbornly keep it in. My partner has to use American English in her organisation though so she doesn't get to be so rebellious.
I like what you said about making desparate inclvestments. You are right, it's often a big mistake, especially with crypto. Maybe desparately betting on education or a certificate course to try to get that job is fine.
I agree with your sentiments as well. Those of us with day jobs and other decently-secure income streams can usually afford to lose our disposable income. Also assuming your positions are sufficiently diversified, you can wait out certain bad conditions.
I also don't sweat at a 40% downmarket. But I guess you are also still up overall when that happens which helps. That said my current y2d is depressing. 22Q1 gonna be a minus, can't win them all.
It is funny isn't it? People don't mind investing hundreds of thousands and years in some cases for not much in return, but won't put $50 a month into crypto - because of the risk. They buy a BMW, but complain about the price of milk.
Might change very soon though. The lottery of crypto is always in play :)
Drew me in with a nice butt. You and Galen with your click bait images :D He does a lot of boobs!
I know that I'm glad to have adjusted my personal situation in regards to investing. I've been taking what normally would have gone into traditional stocks and instead taking that same amount and investing it in bitcoin for each paycheck. I know it may not be the most valuable amount right now but in the future I think that's going to be sitting pretty well!
I know I've made a lot of mistakes on the fear side or FOMO. I've sold when it was at the absolute bottom and had to buy back when it jumped back up. I've also bought at the highs only to sell at the lows. It's a strange game to be playing with crypto and investing! What I've learned and has helped me well since, is just don't sell right now lol. I'm hoping to hold onto things long term like bitcoin but if I get my hands on some shit coin I am more than happy to sell when it gets to a good point for taking a little bit of profit. I'm waiting for my Shiba Inu to moon!
Clickbait works!! Galen is definitely a Boob man :D
It is a risk, but it always has to be tempered with reward. Sure, it can all "go to zero" but realistically, I think the bottom for BTC is 25ish - however, the top is..... and that top (your sell top) might be 6m, a year, two years away. The same amount into a stock is unlikely to give the same upward potential, but the downside isn't far different.
I think one of the things I have learned is - never be all in, never be all out.
Ha HA Ha
Thanks @tarazkp for the laugh and the lesson.
I love your style on this post, a big departure in some ways from your usual, but impactful nonetheless.
Desperation like food on your nose, doesn't look good.
It definantely never makes for good investment decisions, but I suppose just like a stopped clock is right twice a day, people will occaisionally profit from desperate moves.
Cool post, nice attributes on your model.
:)
Posted Using LeoFinance Beta
I should play more with my posts :)
The desperate shills wish they had food on their nose - but they do have something there!
And like gamblers, this "win" will be mistaken for good process and they will flutter for a loss.
Ha Ha
I thought of this other thing.
My thoughts exactly.
:)
Posted Using LeoFinance Beta
Desperation doesn’t look good on anyone.
As an investment strategy it is a disaster, your like a sheep waiting to be shorn.
Nice post, and very nice gluteus Maximus.
Posted Using LeoFinance Beta
Yes - and then slaughtered!
I am lucky, I know her ;)
Emotions are the most dangerous thing for trading. I have a feeling those small fish don't have much invested but they can't afford to lose that money. While I am optimistic about my investments, everything comes with risk and some have less risk than others. So doing research and focusing on the long term helps a lot.
Posted Using LeoFinance Beta
Precisely. I am glad they are getting involved, but no matter the level, understanding personal sentiments and possible reactions is a must - do they think this through? I don't think so. It is why so many of the people who can't afford to lose, get scammed in Discord and the like. Desperation is a type of greed, and it makes us blind.
And you are not in loss unless you are in panic sell whatever you hold. As you said, the biggest risk is us. Morever, one should not bury all assets into crypto or anything else.
Oops!
Most of mine are in crypto - nearly all. But, I figure that for now - I still have a job to fall back on :)
It is a mistake like starting the engine while it is in gear 😁
!PIZZA
Posted Using LeoFinance Beta
I feel as most my peers would be those type of people so I don't tell many about cryptocurrency. I have introduced a handful and know of one or two others in real life that ventured to blockchain themselves. I have been trying to master the art of indirectly telling my peers about HIVE and cryptocurrency in general by mentioning some of my profits. This way they can't blame me for getting them to invest in something that might cause them negative returns.
Posted Using LeoFinance Beta
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Very good information. Definitely the world of cryptos is not for everyone. You gain a follower.