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Topic Summary

Posted by: techion
« on: 01-07-2019, 20:15:44 »

It's going to take a while for folks who survived the last bear to shift their mindset to a bull market, including me.

These tips are mostly for long-term investors, but others may also find them useful.

In an early stage bull market:

Don't underestimate the greed which can overtake this market once FOMO starts to set in. Right now, we are just getting the very beginning of FOMO, mostly from old hands- retail and likely even institutions are not here in any significant capacity.
Don't try to stop a moving train by doing stuff like shorting, you will very likely get run over.
Don't try to jump from coin-to-coin if you are long term investor- you will almost always end up in the slow lane. You are possibly looking at 15x to 50x in returns. Don't get unnecessarily greedy.
Don't forget about short term capital gains if you live in the US or similar jurisdictions (usually taxed at a high marginal income tax rate). Get quality investments for planned 1+ year holding periods for long term capital gains treatment as quickly as possible.
Don't wait for retraces to get your long-term holding positions, you'll likely get left behind.
Don't get stupid with leverage, because a simple and short-lived retrace may leave you completely rekt, and from current valuations, taking that additional risk may be completely unnecessary to achieve life changing returns.
Don't worry about when a 30% to 40% retrace will happen- it very likely will, but the price might be 50% to 100% higher from what it is now when that happens.
Don't freak out when local retraces happen- hold and possibly add to your position, managing your overall risk and exposure appropriately.
Don't sweat day-to-day movements- the trend over the next 2.5 years or so is very likely to be up, up, up.