Ask someone what return they want this year and they'll say 100%, maybe more.
Ask what drawdown they'd sit through and they'll say 20%.
Those two numbers can't live together. Nothing that delivers the first is available without regularly handing you the second, usually worse.
Bitcoin at $77,200 has cut in half more than once on people who were completely right about the decade. Ethereum at $2,510 the same.
The expectation gets borrowed from the upside and the tolerance gets borrowed from a savings account. That mismatch has ended more accounts than bad research ever did.
And the fix isn't lowering what you want. It's sizing so that what you want is survivable.
What's the worst drawdown you've actually sat through, not imagined?
Follow me if you want more of this kind of breakdown.
A personal observation, not a recommendation to buy or sell. Do your own research and carry your own risk.
#Market
Ask what drawdown they'd sit through and they'll say 20%.
Those two numbers can't live together. Nothing that delivers the first is available without regularly handing you the second, usually worse.
Bitcoin at $77,200 has cut in half more than once on people who were completely right about the decade. Ethereum at $2,510 the same.
The expectation gets borrowed from the upside and the tolerance gets borrowed from a savings account. That mismatch has ended more accounts than bad research ever did.
And the fix isn't lowering what you want. It's sizing so that what you want is survivable.
What's the worst drawdown you've actually sat through, not imagined?
Follow me if you want more of this kind of breakdown.
A personal observation, not a recommendation to buy or sell. Do your own research and carry your own risk.
#Market