In theory, flipping investments for quick profits sounds straightforward. Just buy low, sell high, repeat.
In practice, time is one of the main determining factors in terms of having a good entry and exit on this train of investment(s).
The other factor is arguably a subset of time, which is circumstance. You can find a good entry to enter but not have the necessary resources to take advantage of it. I've been in this position a couple of times already and it's really not a mentally happy situation to be in.
I'm gradually toying with the idea of never having to exit an investment, and just holding it for a lifetime. Came across a couple of videos on YouTube over the years that discussed this concept of Buy, Borrow, Die.
Basically, you buy assets that you can borrow against and use that liquidity to fund your lifestyle without triggering taxable events, eventually passing the assets to heirs with a stepped-up cost basis.
The thing is I can't yet tell for certainty is what type of investments fit that bill in an increasingly relatively short lived boom/bust cycle.
For sure, think long term, don't worry about the short term fluctuations, markets go up and to the right over time is more of a blanket statement that doesn't hold much weight to me at this point in time.
However, I think the predictable nature of human behaviour and this overarching goal/desire for progress is a good recipe for markets to keep going up, albeit, the nature of the market may experience intense transformation in the process.
So, this is just me holding two possibilities of the same thing within different timeframes.
This statement is almost like an irony for me when I've heard it said by traders who trade most of the time the same currency pairs or in just one market.
Investors, on the other hand, are optimistically naive, like myself, who still operates on the premise that conviction in your research matters more than following the crowd.
I think basically judgement is the underrated quality that's often not discussed much in this domain of investing and trading.
I'd rather prefer to do my own research, then get married and get rekt than ride the trend of narratives to the moon, so to speak. I don't know. Undeserved or rather lack of active participation winnings always give me a wretched feeling in the guts. I need to put in the effort first.
On X, I recently came across (again) of this video of Trump saying something along the lines of you will win so much that you'll get tired of winning!
I think what has caused it to resurface broadly is this contrast between the campaign promise and the current market volatility people are experiencing.
The jokes on us if we don't take advantage while the conditions are favorable.
When such type of environment comes, learning the main drivers of why the market is moving in a particular direction and building a strategy around that is the best way to maximize the easy moments, while they last. Then, having a pseudo purpose works more towards keeping you disciplined and preventing overconfidence from destroying your gains.
At least, internally, that's the defense mechanism I need for when the 'winning' becomes so monotonous that the money loses its emotional value, which in itself isn't necessarily a bad state of mind to be in.
Thanks for reading!! Share your thoughts below on the comments.
