This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Reminder that Friday issues are primarily focused on education and tend to have more written content and less charts than other days!If you are making enough money investing, there's no reason to be actively trading.If you have been with me for a while, you know that I preach to be an investor first and a trader second. Most of the time, I limit my trading portfolio to 15% of my overall capital, with 70% being investments (BTC, ETH, select alt investments or leftover moon bags from good trades) and 15% being in cash (USDC earning 9.5% on Voyager).You always have to have cash in your portfolio (not separate) for buying dips.There are times when I dramatically scale up the trading stack, depending on the market - last year there was a point where I was trading with 50% of my capital. This is a part of your risk management strategy - knowing the rare times when it's worth scaling up and being more aggressive.I personally spent 3 years banging my head against the wall trading this market, accumulating sats slowly and trading my way to profits.I do not have to do that right now. Because most of my money is invested and not being traded, I have profited well beyond even my own expectations in the past few months. I do not have to trade at this time. Further, to even scale my trades to my portfolio size as an appropriate percentage would be difficult for me, both in terms of slippage on alts and emotions. I have a certain comfort threshold for how much loss I can tolerate on a trade, no matter how big my portfolio becomes. Now, losing 1-2% of my stack on a trade is well above that pain threshold. It does not make financial sense for me to trade very much and is not worth the stress.I know you see guys on Twitter trading multi million dollar contracts on heavy leverage. That is not my style, and not something I have any interest in doing. Great for them, but I am not pushing to do that now.To be clear, I am not quitting trading! I am just trying to make the point that right now, the investments are doing so well that I feel I have earned a moment to breathe and reflect and enjoy the gains without actively working to grow my account. And that is a result of patience and proper portfolio management for YEARS.I have talked about this countless times, but there are only 2 reasons to trade - to make money and to earn free time. I am at a rare moment where I have done both. I am not going to waste that time, but rather spend it building other things like this newsletter, the podcast, my youtube channel etc. And of course spending more quality time with the family.If any of this describes you, try to take a bit of profit and enjoy the moment. It may not last forever.Side note - I know there have been a few less charts this week. Bitcoin is the only show in town, stocks still feels toppy even though "they only go up," and alts look rough on their BTC pairs. The only reason, in my opinion, to actively trade alts is to stack sats. Bitcoin is on the parabolic run of a lifetime - there's no reason to aggressively be pursuing alt trades, unless you are starting long term positions. I can absolutely see averaging in at these prices if you have a high threshold for pain and patience.People keep messaging me about the incredible gains they are making trading alts on their USD pairs, and I have to calmly explain that they are making less than if they simply sat in Bitcoin and did nothing.In the stock world, traders attempt to beat the market. Let's say the market is the Dow - you want your trades to outperform the Dow. Otherwise, you're better off buying an index fund.In crypto, Bitcoin is the market. You trade to beat BTC. Up in USD, down in BTC is losing.You're not stacking sats, you're losing them.THERE WILL BE A LOT MORE CHARTS AGAIN SOON! The market dictates this, not me. I will also share more trade reviews when I start taking more trades!In This Issue:Bitcoin Thoughts And AnalysisCircle Of CompetenceA Bitcoin ETF Approval Could Hurt GBTCFinCEN Is Experiencing Strong PushbackGoogle Searches For “Ethereum” Are Outpacing Searches For “Bitcoin”Bakkt Cryptocurrency Exchange May Go PublicMy Recommended Platforms And Tools
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The Wolf Den #152 - Invest More, Trade Less
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This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Reminder that Friday issues are primarily focused on education and tend to have more written content and less charts than other days!If you are making enough money investing, there's no reason to be actively trading.If you have been with me for a while, you know that I preach to be an investor first and a trader second. Most of the time, I limit my trading portfolio to 15% of my overall capital, with 70% being investments (BTC, ETH, select alt investments or leftover moon bags from good trades) and 15% being in cash (USDC earning 9.5% on Voyager).You always have to have cash in your portfolio (not separate) for buying dips.There are times when I dramatically scale up the trading stack, depending on the market - last year there was a point where I was trading with 50% of my capital. This is a part of your risk management strategy - knowing the rare times when it's worth scaling up and being more aggressive.I personally spent 3 years banging my head against the wall trading this market, accumulating sats slowly and trading my way to profits.I do not have to do that right now. Because most of my money is invested and not being traded, I have profited well beyond even my own expectations in the past few months. I do not have to trade at this time. Further, to even scale my trades to my portfolio size as an appropriate percentage would be difficult for me, both in terms of slippage on alts and emotions. I have a certain comfort threshold for how much loss I can tolerate on a trade, no matter how big my portfolio becomes. Now, losing 1-2% of my stack on a trade is well above that pain threshold. It does not make financial sense for me to trade very much and is not worth the stress.I know you see guys on Twitter trading multi million dollar contracts on heavy leverage. That is not my style, and not something I have any interest in doing. Great for them, but I am not pushing to do that now.To be clear, I am not quitting trading! I am just trying to make the point that right now, the investments are doing so well that I feel I have earned a moment to breathe and reflect and enjoy the gains without actively working to grow my account. And that is a result of patience and proper portfolio management for YEARS.I have talked about this countless times, but there are only 2 reasons to trade - to make money and to earn free time. I am at a rare moment where I have done both. I am not going to waste that time, but rather spend it building other things like this newsletter, the podcast, my youtube channel etc. And of course spending more quality time with the family.If any of this describes you, try to take a bit of profit and enjoy the moment. It may not last forever.Side note - I know there have been a few less charts this week. Bitcoin is the only show in town, stocks still feels toppy even though "they only go up," and alts look rough on their BTC pairs. The only reason, in my opinion, to actively trade alts is to stack sats. Bitcoin is on the parabolic run of a lifetime - there's no reason to aggressively be pursuing alt trades, unless you are starting long term positions. I can absolutely see averaging in at these prices if you have a high threshold for pain and patience.People keep messaging me about the incredible gains they are making trading alts on their USD pairs, and I have to calmly explain that they are making less than if they simply sat in Bitcoin and did nothing.In the stock world, traders attempt to beat the market. Let's say the market is the Dow - you want your trades to outperform the Dow. Otherwise, you're better off buying an index fund.In crypto, Bitcoin is the market. You trade to beat BTC. Up in USD, down in BTC is losing.You're not stacking sats, you're losing them.THERE WILL BE A LOT MORE CHARTS AGAIN SOON! The market dictates this, not me. I will also share more trade reviews when I start taking more trades!In This Issue:Bitcoin Thoughts And AnalysisCircle Of CompetenceA Bitcoin ETF Approval Could Hurt GBTCFinCEN Is Experiencing Strong PushbackGoogle Searches For “Ethereum” Are Outpacing Searches For “Bitcoin”Bakkt Cryptocurrency Exchange May Go PublicMy Recommended Platforms And Tools