What I have done, deviates from my normal strategy, which we’ll talk more about.
But let’s go over why I did what I did this week.
Cheaper Is Good
I want to get one thing out of the way first.
When the market has dropped 70-85%, there really isn’t a bad time to buy, as long as it’s a good project.
You may not like it, especially if you’re overall bearish like me. You will always think there’s a better price out there.
But buying anyway is all part of the discipline game that will serve you very well long term.
The last thing you want to do is get left out. I cannot stress this enough
So you’re going to have to make move, as we often do here, based on the idea that your bearish sentiment has a chance (small as it may be) of being wrong.
Just don’t get left out. We don’t know how long it will be before we see this again.
If you take every single thing on your watchlist and buy it now, years down the road you may very well look like you got in so cheap, that your friends won’t believe you when you tell them.
But I do have methods I use to get in at the best price I can. We’ll go over that this weekend on the podcast.
What I did a few days ago, deviated from this strategy.
Let’s talk about why.
Again, blindly buying now is never a bad way to go in my opinion. NFA
But there were two that I figured I should just pull the trigger on. Two cryptos I already owned.
Let’ go over why.
Things are really progressing in the XRP case. Good things. As they have been.
With a possible decision coming as soon as January 2023 (slightly unlikely IMO [SEC has lots of reasons to delay], but that’s the month they’re giving), I just didn’t see any reason to wait any longer.
I just want to have a solid bag before the ruling comes down. The potential upside is too great to ignore.
“But you could have had it cheaper!”
I already had it cheaper years ago. If you’ve been keeping up with my crypto positions portfolio blog, you’ll remember how I had XRP at $.21, and moved it into ETH when I saw news of the SEC case come down.
I added on to a position I took this year at around $.45
“You would have had twice as much if you just held at $.21!”
This is a childish way to think, and can really interfere with making good investment decisions IMO. This little voice does creep into my head sometimes.
But I feel like I have gotten into something at a very good price. If it can at least get back to old highs, I’ll be stoked I got in at $.45
I won’t sit there and think “what if” like some amateur.
Give me more of that shit at $.45, and let’s watch this thing play out.
XRP could easily start its ascent before the case gets closed, as we draw closer to it.
So I just bought more and added on now as opposed to later.
Sometimes there just isn’t a good reason to wait any longer.
I announced both of these moves on Discord BTW, for posterity.
Here was my thought process on ADA:
ADA was always my largest position because of how early I got in. I started buying at $.09, and bought more in the $.12-.16 range if I recall correctly.
Since then, I have gotten heavy into the Cardano Ecosystem, and have bought a lot of land in some of their future metaverse projects, along with other peripherals that go with some of them.
I did a lot of this when the price of ADA was at $1.10 to $1.30.
But then I got a gift when it dropped to $.35
If I replace the ADA I spent at $1.10-1.30 with ADA at $.35, then everything I bought actually cost me about 70-75% less in USD than it did when I bought it.
It’s this weird phenomenon where you end up saving a bunch of money after you’ve already bought the thing you just saved a bunch of money on.
And I get to have my original position in ADA back!
Too good to pass up. Why wait at this point? Take the gift.
If it goes down further, I may buy more depending on cash I have on hand. I do love Cardano, and want as much as possible, but securing the rest of the positions on my watchlist comes first.
As a secondary timing reason, the CNFT space has been blowing up this week. Some of the volume was from pissed off Solana people switching teams, some of it is still unexplained.
Plus, as an added bonus, we have two of the largest crypto YouTubers — BitBoy and Altcoin Daily, both heavy in the Cardano camp. So when some of these ADA projects finalize and launch, there should be major press automatically there to let the world know. Other blockchains do not have this luxury from a marketing standpoint.
Just another one of those situations where waiting around made a lot less sense.
It takes a lot for me to deviate from a strategy, but unlike FX trading, investing should follow a strategy, but you can afford to be a bit more flexible with things if the situation warrants it, and you’re not being reactive to a news event which came out that morning, for example.
This was one of those cases.
Stay tuned for Episode 73 of the 10-Minute Contrarian Podcast where I explain which two positions are next up, and why.