This market keeps on proving that the hardest thing of bear markets is patience and being calm.
It has been at leadt 5 times it looks like we were out of the weeds.
It is easy to add to positions just to get kicked back out a few weeks after.
It has been at leadt 5 times it looks like we were out of the weeds.
It is easy to add to positions just to get kicked back out a few weeks after.
Not only do you need to sit but if you mess up big 7 fig opportunities, you have no opportunity to make it back.
This is by far the best lesson I have gotten in my 10y career. Many will not survive it.
Those that take the least damage will go 10x during the next bull market.
This is by far the best lesson I have gotten in my 10y career. Many will not survive it.
Those that take the least damage will go 10x during the next bull market.
The best businesses are on hardcore dicounts yet most most still focus on the most known names (fintwit, reddit, WSB...).
Lowest valution in 20y will lead to easy 2,5,10x over the next decade, but most will overstrech prior.
Lowest valution in 20y will lead to easy 2,5,10x over the next decade, but most will overstrech prior.
50% of traders I used to trade with are gone, almost all have taken damage and most big damage(40%+ drawdowns).
The biggest enemy is extended time periods of having to do absolutely NOTHING.
Hard times are hard, long periods of hardship are nearly impossible.
The biggest enemy is extended time periods of having to do absolutely NOTHING.
Hard times are hard, long periods of hardship are nearly impossible.
It is hard to adjust to new standards.
I had to change from 7 or 8 fig years to making nothing (across investments going down and profit from trading).
The standard in big bear markets is not profiting, it is surviving and having enough to invest at the end/bottom.
I had to change from 7 or 8 fig years to making nothing (across investments going down and profit from trading).
The standard in big bear markets is not profiting, it is surviving and having enough to invest at the end/bottom.
The focus needs to be absolutely on the long term survival and growth.
It is unimportant to make money this year, but it is important to go 5-10x in the next bull market cycle.
90% will fail because they would rather blow up than not keep up with the jones.
It is unimportant to make money this year, but it is important to go 5-10x in the next bull market cycle.
90% will fail because they would rather blow up than not keep up with the jones.
Most traders have never seen a bear market like 2008 and 2000. 1% will make money through years like that.
Those making you feel behind are those selling products to survive themselves.
Make sure to make individual and reflected decisions.
Those making you feel behind are those selling products to survive themselves.
Make sure to make individual and reflected decisions.
BTW it is so hard to adust because every 50% correction starts by being a 10% and 20% correction.
Betting on a 50% correction has less then 15% odds (vs smaller ones). By the time you realize what you are facing you could be down 30%+.
Betting on a 50% correction has less then 15% odds (vs smaller ones). By the time you realize what you are facing you could be down 30%+.
It is also the principle behind a value approach like Warren Buffett. The outperformance comes from its behavior during bear markets.
The amount of times I saw "I am up more than berkshire... blabla", that was never the point.
Look at breakshire vs ARKK now.
The amount of times I saw "I am up more than berkshire... blabla", that was never the point.
Look at breakshire vs ARKK now.
$BRKB in 2000 and 2008.
It is about long term compounding which has ONE rule.
The more the inital stake, the more exponential the growth.
It is about long term compounding which has ONE rule.
The more the inital stake, the more exponential the growth.
This is how I would like everyone to think about this period.
This period is not about how much you make but how much you limit the drawdown.
for 10y:
1,000,000 at 20% : $6,191,736
750,000 at 20% : $4,643,802
500,000 at 20% : $3,095,868
Long term thinking = compounding.
This period is not about how much you make but how much you limit the drawdown.
for 10y:
1,000,000 at 20% : $6,191,736
750,000 at 20% : $4,643,802
500,000 at 20% : $3,095,868
Long term thinking = compounding.
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