If You Believe The Lie
Most people believe the voice that repeats, as opposed to the accurate voice. Many successful traders or investors who have managed to make it without joining “The Club” will confirm this foundational truth. Understanding and interpreting markets accurately is a matter of emotional intelligence and discerning the game being played.
Once you have a clear objective of what the goal is, as well as how the public and entities will respond, you have the end game. This includes the accumulation of data and technical analysis.
Disinformation Is Born Through Repetition
If you want accurate information, you will have to seek it out yourself. Disinformation aimed at the potential investor is not necessarily information that is false but rather information that is not relevant. Seeking out accurate and relevant information also requires another practice, ignoring the noise. What I consider noise may surprise you! Paying attention to and being aware of what is currently trending is a behavior thought to be in step, contemporary and cool. However, this is something that a good investor shuns. He has already built his position in what is currently trending. He has moved on.
Great Investors Are Not In Step
Wealth and independence are synonymous, they do not manifest without the other. In other words, great investors are not in touch with the current market, they are ahead of it. They have built positions, mechanisms, and models to benefit from the current trends and market moves. They are now building for the next perceived move. Removal of the current noise is imperative and instrumental in gaining a clearer picture of where markets are most likely headed next. In essence, the main principle that dominates successful investments is very simple!
Figure out where the market is heading and then get there first! It’s as simple as that and yet becomes complicated without the discipline of thought and focus.
Content Creation Can Be A Trap
Many content creators within the Crypto space direct their attention to what is currently trending. This is done for obvious reasons. Herd mentality secures them clicks and reads. However, spending time to research and discover a few unknown gems can be way more rewarding than selling out to the flavor of the month. Even a $100 investment in a 400X success story is way more profitable than the best-performing post or article.
Trends Reveal Where Money Has Already Been Made
Trends are reserved for “dumb money”, as the money has already been made. Take Solana for instance, the hype kicked in when SOL broke through the $100 mark. FOMO followed and drove the price north of $200. Currently trading at $143, where is the profit for those who jumped onto the flavor of the month? I purchased Solana at $0.30 and informed readers, shortly after.
If you have been following Sapphire Crypto on other Crypto-based platforms you would have noticed that I addressed Solana some time back. When the frenzy hit, my readers were already informed and were hopefully holding SOL. This is the aim! I have zero concern about trying to jump on the “what’s trending” train. By doing this, exclusive and valuable content is being provided to benefit subscribers free of charge.
Discerning Death
An investor looks ahead to begin building positions in what he believes will be profitable and successful. However, this also requires an astute investor to abandon what he interprets as a dead or dying project. This can get very tricky and may often require an initial move that can later be revisited if required.
This can take place quite frequently in the altcoin market and you need to be prepared to cut your losses if necessary. This is why I advocate my approach to investing in altcoins.
Altcoin Accumulation Strategy
One of the worst things an investor can do is to go in guns blazing on a new micro-cap position. These projects are highly volatile and can sink to unimaginable levels over prolonged periods of constant downward price action. My approach is to start with a very modest position, with not much at risk. If the price slides, I will pick up more, provided the long-term view is still intact.
If the project edges higher, I will increase my holdings on significant dumps or bearish price action. In this way, I protect my entry point. In the case where the price goes lower, I am lowering my entry point.
In both cases, I am protecting my capital and removing the element of significant loss. All or nothing is for gamblers. Together with portfolio construction comes capital protection. An investor looks for the safest way to gain exposure to an otherwise risky asset. The strategy that I have mentioned makes that idea a reality.
Conclusion
These pointers are applicable to altcoin investing. It is rather difficult to go wrong by constantly accumulating Bitcoin or even Ethereum for that matter. At the end of the day, success is achieved by doing sufficient research and having a smart execution strategy. Ensure that you understand the investment that you select and are aware of all the potential risks involved. Don’t take my word for it, or anyone else for that matter.
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
Very informative and interesting article, and it was enough so that it compelled me to hit that subscribe button—a little secret about me, I subscribe to few people so as not to crowd my notifications with stuff I really don't want to read, preferring to find things to read via other feeds.
In any event, about investing. I have always taken similar approaches—stocks, crypto, or other types of investments, it doesn't matter. I take the same approach. I do my own research, and I want to know as much as I possibly can about what it is I am investing in. On top of that, even if I feel like something is a REALLY good investment, I am very careful to dip my toes into the water rather than just jump right in.
Take Rivian for example. I have been looking at the company for the past two or three years, and when it IPO'd I wanted to get onboard with it since I think the company is potentially a $1000 stock eventually for a variety of reasons I will not get into here.
But the point is, rather than go all in on the $10,000 I have allotted for Rivian stock, I am dipping in slowly, buying a few shares each month until I reach the investment amount I currently want to make.
It allows me to constantly reevaluate my position, and change things along the way, and also allows me to average in my investment dollars.
For me, the key to successful investing in anything is calculation. With it you can decide a lot of things, including when you may have gotten something wrong and can yank your money out before you've lost the farm so to speak.
In any event, I could go on and on. lol. I will just look forward to reading more going forward now that I am subscribed.