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RE: Three investment rules revised

in LeoFinance4 years ago

This is an excellent post. Your answer mentions a lot of the important nuances when it comes to these maxims.

Quite often, a measure of potential loss must be accepted in return for a chance to gain. Particularly when the potential gains are life-changing, accepting potential non-life changing losses is really a no-brainer.

Crypto is a perfect example of why #3 is not necessarily true. In Bitcoin and many altcoins the largest gains are made after extremely powerful rallies that take place within just a few weeks. The losses typically take much longer to materialize. Buying a bag of shitcoins at the top and holding it too long is the worst mistake one can make.

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Your answer mentions a lot of the important nuances when it comes to these maxims.

There are quite a few more embedded and they splinter into more.

accepting potential non-life changing losses is really a no-brainer.

I think perhaps mentally, the brain just hears "loss" and often we treat all of them rather the same, without looking at the different perspectives of each.

Buying a bag of shitcoins at the top and holding it too long is the worst mistake one can make.

Are you in the market for some bags? :D

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Are you in the market for some bags? :D

If you're talking about shitcoins, I believe it is too late. :D