Today I’m talking with Tom, The Crypto Investor about how we keep up with the crazy crypto markets, lessons we’ve learned the hard way and investment principals you can apply to investing in just about anything.
Links & Charts
- Tom Lee of Fundstrat’s “Rule of 10 best days“
- Raoul Pal’s chart comparing crypto adoption to internet adoption
- PlanB discussing RSI breaking above 0.7
Principals To Invest By
- Assets vs Liabilities – The iPod I bought in 2003 was a liability, had I bought Apple stock that day instead…
- Marathon Not A Sprint – Don’t get caught up in the day to day, invest for the long term.
- Time In The Market vs Timing The Market – Just remember Bob, the worlds worst investor.
- Asset Volatility – Learn how to endure volatility and the importance of de-risking over time.
- Asset Class Allocation – How much should we hold in Crypto? Probably not all…
- Compound Growth – Impossible for our tiny human brains to comprehend, but the most powerful force in finance.
- Let Your Winners Run – You can take some profit, but an object in motion stays in motion.
- Buy Momentum – Don’t try to catch a falling knife and buy when RSI > 0.7
- Add To Your Winners – Not your losers!
- Cutting Out The Noise – Focusing on the signal, not the chatter.
- Asymmetric Risk – You want low downside with infinite upside.
- Avoid Lifestyle Inflation – Just because your portfolio is growing doesn’t mean your expenses have to as well.
- Invest In Assets With A Competitive Moat – Category defining assets with no competitors tend to outperform all else.