It's been a wild emotional ride for us crypto investors the first three months of 2018, and I'm worried that I might be repeating an old behaviour.
Way back in 2006/2007 I was busy investing in the stock market (remember that?!). Even back then my plan was 'HODL'. I talked about this in one of my early posts, but basically the plan was to build up a diversified portfolio of large, safe, dividend-paying corporations and then HODL. Eventually the dividend stream (which was being continually re-invested into the portfolio) would grow so large that I'd not have to work anymore.
So what happened? Well life (I had a baby & got divorced in quick succession), then got made redundant a few years later from satellite engineering as I embarked on the precarious career of homeopathy, then the banking crisis happened. All these things conspired to blow-up my HODLing idea. But the real problem was the investing choices I made.
Mistake 1: Going 'all in' on equities. I invested most of my spare cash in the stock market and thought cash was for wimps. 'Go big or go home' etc! This meant I didn't have much of a cash cushion for life's unexpected 'bumps', which caused me to have to sell out of equity positions at a market low just to pay the bills.
Mistake 2: Ignoring my own strategy and being very overweight in one sector (banks!)
Mistake 3: Believing 'experts' and those in 'authority'
So, why bring this up today Freestone? Because...I find myself in the same emotional fear/greed space as I was back in 2007 when I kept investing more and more into RBS bank as it went lower and lower. The thousands I sunk into RBS eventually became worthless. I find myself doing the same with EOS in 2018... when I see it going lower I want to buy some more... and so it was today when I added another little chunk to my holdings.
Am I repeating the mistakes of the past? Would I be better just buying Coinbase's new crypto index fund when it launches? Or am I buying assets at $5-a-pop that will be worth a hundred times this in 5 years time?
I'm extremely bullish on EOS, apparently there are already 6 airdrops announced. It's going to get exciting when it launches in June!
Answers on a postcard please!
