Good morning, afternoon, & evening to you all. Welcome back to the most random newsletter on the internet. Got a few mins? Let’s dive in.
Since most of you don’t click my tweets to read the larger tweet this week I wanted to just make sure the overall message was received.
This past week the crypto markets sold off wasn’t the first time and it won’t be the last. The trick is, being patient.
We just saw the month of October retrace all of the prior losses we were back in May and now after a 4-day selloff, people are claiming it’s the end of the world (okay maybe not that drastic… yet).
The key to success is zooming out to a 3/5/10/20 year time horizon to see where the macro is headed.
For me the macro is simple. Crypto is a sub 3T market cap globally. It will easily push 10T or 30T (if not beyond). Realistically 300T is on the table.
Fundamentally the biggest challenge to this transfer of wealth is the old guard putting up a fight against new challengers. people in power want things to stay the same, change means turnover.
Change means loss of control.
While it's easy to get lost in the narrative you see on Twitter of getting rich quick, for every person that becomes an overnight millionaire, there are 99 stories that are on the other side of that trade. the market is made by taking from one to pay another.
True wealth is generated by mitigating portfolio liquidation. Snowball a small stack into a formidable trading balance. That doesn't get built overnight.
Many people that come into a windfall on a great trade often squander it away if they came into that windfall based on luck. it's similar to how someone who wins the lottery often ends up broke very quickly after the fact.
If you don't have the skills to retain it, you'll often times squander it away over time. the best solution is to build good habits early on as a trader and continue to refine them. I'm ranting because I don't think this bull market is over
Whether it blows off the top in the next 6 weeks or it leaks into 2022, is irrelevant, what is relevant is that you start to learn how to trade/invest and become self-sufficient. take profit when you are up, live to trade another day.
Double down on winners, cut losers. (not just investment advice, but life advice for people around you) okay, rant over.
Same time next week?
You’ve made it this far on my word vomit newsletter? I appreciate you! I’ll be back next week with the next edition of the most random newsletter on the internet.
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Much love to you all,
~Adam