Financial Education: Once You Are Out, You Are Out
(Edited)
This is another tidbit for those who are newer to the investing game.
With an asset, once you sell, you are out. That asset is now part of the thousands that you do not own. It is no more meaning than anything else that is out there.
In this video I discuss now many have FOMO after they sold an asset. What if it keeps running? Well, what if other things out there run? It is the same thing. The fact that you owned it two days ago means nothing. You exited, hence it is just another asset on a watchlist.
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BEER.Such an important topic an tidbit of info people need to realize.
This is like legit the biggest asset ever since Crypto is essentially money it's interchangeable and instead of losing buy value it's only gained buy value unlike fiat.
You don't "lose" money or value until you sell it at a loss so HODL if you are down and you really believe in the chain and the project. This shouldn't be a hard thing to do if you follow financial advise 101 don't invest what you can't afford to lose.
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Absolutely. The basics are not changing simply because we are dealing with crypto. It all comes down to business building and looking for those opportunities that are going to grow and excel. This is what investing is all about.
Of course, trading takes on a different point of reference since it is a completely different approach.
However, for those with long term vision, it is vital to have projects, whatever the asset class, that one believes in.
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Hello! For me it has always been very important that people who want to invest and to whom I have had the opportunity to advise, understand that:
#1 You cannot invest money that you are not willing to lose, in other words, take a risk with money that you don't have an urge to use.
#2 In this type of investments, one day you can be bottoming out and the next day you can be making a lot of money, that is why it is essential to keep calm at all times, this requires a lot of patience. You have to play with a cool head.
#3 You must evaluate well the investment you will make and not be convinced only by what others say.
I would like to know, what do you think?
Greetings to all, a hug.
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I would say you are correct. The emotional roller coaster is something that people need to get off of. It is not a healthy way to build wealth. Markets go up and they go down.
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Yes, totally that man, you can't get discouraged by a slump, always keep a cool head in this type of situation, that's the basis for success.
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Oh man I fomo alot on other shit coins.
Mainly because I sell and bring here to Hive/Leo then check a fee weeks later and a 0.0003 to 0.002 token hits 20c and I'm all like the fuck! I should have waited.
But then CUB divs!
Meh, that's life isn't it. Can't be everywhere better to be somewhere
Nope and there is no crystal ball. This is also, in the right frame of mind, a long term deal. So, in your situation, you added more to your core holdings buy buying Hive/Leo. Those are obviously two holds for you. Plus, we know that whatever you acquire with those can be leveraged for bigger impact down the road.
So ignore the FOMO of coins you jumped out of. Take the money, build your core holdings, and keep busy.
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Gotta agree with you there. Although I couldn't resist adding to the CUB BUSD. I pulled some from Den to out in there. 4.4 ROI per thousand. It's a tough one though and I need to calculate an exit point because that's where imperative loss will probably be felt that most. But great ROI for this week.
Yea the mindset is really weird. I always see myself regret getting out early but I just take a look at my account and move on because it is green. Of course sometimes it is red and it hurts but I still have to cut my losses at some point.
The market always has opportunities so don't regret and move on.
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That's why it's a good idea to exit gradually and buy in gradually, less stress and other negative emotions. But having the right investing mindset takes time and sometimes it also takes some mistakes that teach valuable lessons :)
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Certainly an excellent money management approach. We never know either the bottom or the tops. So having a range where we are going to buy and sell is smart. Then, when hit, take it is pieces, for example, 1/3 increments.
Whatever the approach, once out, time to focus upon something else.
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Summary:
In this video, Task discusses the concept of FOMO (Fear Of Missing Out) but from a different perspective. He talks about the fear associated with missing out on gains after selling an asset rather than missing out on purchasing an asset that is rising in value. Task emphasizes the importance of having exit strategies in place before investing, to avoid emotional decision-making. Once an investor sells an asset, Task highlights that they are out of the game and should not be influenced by its future movements. He compares this concept to being involved in a game where once it ends, the outcome no longer affects the player. The video concludes with Task encouraging viewers to mentally draw a line when exiting investments.
Detailed Article:
Task delves into the concept of FOMO, a common phenomenon in investing, where individuals fear missing out on opportunities. He begins by explaining that FOMO is not just about missing out on investments that are performing well but also about the fear of missing out on potential gains after selling an asset. Task stresses the importance of having exit strategies in place before investing. He mentions that different traders use various indicators such as percentage gains or market trends to decide on the right time to sell and minimize risks.
Furthermore, Task highlights the psychological aspect of investing, particularly the emotional attachment that investors may develop with an asset they have sold. He argues that once an investor exits a position, they should mentally detach from the asset and understand that its future performance is no longer their concern. This approach helps in reducing FOMO and making more rational investment decisions.
Task uses the analogy of a sports game to illustrate his point about exiting investments. He explains that like a player who is only involved in a game while playing and has no impact once it ends, an investor's interest in an asset should cease once they sell. He emphasizes that investors should focus on growing their capital consistently rather than dwelling on past investments.
In conclusion, Task emphasizes the importance of mental discipline in investing and advises viewers to draw a clear line when exiting investments. By maintaining a rational mindset and avoiding emotional attachment to past investments, investors can make better decisions and avoid succumbing to FOMO.