Learning From My Crypto Mistake

[How-DoesThisSound]

In May 2020 after evaluating the Cardano project's team, technology, tokenomics and timing I took the plunge and dollar cost averaged into the project through a few different exchanges. I bought in weekly between .08 - .13

Later in November of that year I sold off everything to pay for newfound start-up expenses. Sometimes we (and I mean myself) lose out not by making the wrong investment but by not being financially able to stay in the race long enough. As it stands the Cardano (ADA) is now at around $1.20

Going forward I'm going to make sure I never invest anything I can't afford to keep in for the long haul. I would have made well over 10x on my investment had I stayed in. I said all of this to say, don't do what I did!

[Alphaville]

otoh if you had waited to invest till you could have afforded to keep for the long haul... you'd have made zilch and have no startup

[white belt]

On the other other hand if ADA had tanked you would be bragging about how you timed it perfectly. Trading isn’t for the faint of heart and has an enormous psychological/emotional component. Reminiscing about what could have been isn’t a healthy practice if you want to be successful over the long term.

[How-DoesThisSound]

@alphaville: You bring up a good point, thanks! I've done a 2x twice before in XRP, so I don't feel too bad. I came out net-positive in Cardano anyways so it's not the end of the world

In the future I don't think I'm ever going to sell out completely on any of my positions and loss it utterly craters. That way even if I DCA out I'll still have some "just in case this moons" money left in.

@white belt: No, the other hand does not involve bragging about how I would have "timed it perfectly". When someone DCA's they avoid the foolishness of following charts, and getting involved in day-trading and worrying about timing. My own foolishness was of a different variety but it's a lesson for me seeing as I've learned from it. I beat myself up over it initially but don't do so anymore. Maybe someone reading this will avoid doing what I did, who knows. When I get back in, I'll stick to DCA'ing weekly and wait until I do a 10x from my "average" and then sell 20% off to pay myself. Then every subsequent 2x I'll take 20% unless it's something that I feel has 100 - 1000x potential. I'm going to keep a stable of 3-5 projects I've vetted, trust the process, and not play around with more than I can afford to outlay that away avoid a repeat of the past.

[Lemur]

Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return.

I like this quote. It reminds me that volatility can be welcomed if you believe that you bought your investment at a decent price and you're 100% confident the investment cannot go bankrupt. It is what is keeping me right now in MAC (I'm down almost 50%) and NOK (down about 20%). What is also keeping me is sunk cost fallacy lol but I do believe I can recover my investment and make gains if I wait it out long enough. Not counting recent dollar cost averaging .... It is the same quote that is keeping me long on my stocks. Imagining 10 years from now - I'm going to be up quite a bit!

What also helps - Have buy / hold / sell targets and revise them quarterly. It is important to have a margin of safety when buying a stock. For instance, if you put the fair value of a stock at $50 and require a 25% margin of safety, then don't purchase the stock unless you can get it for $37.5 or less.