Make sure to check out the NFT giveaway from my friends at Sovryn, the trading competition from Phemex and all of the amazing things they are doing at Nexo - all in today's newsletter. Institutions are not perfect.The past couple of weeks have shown that not even major institutions can time a Bitcoin top or bottom. CEOs appear to be geniuses when they publicly announce their purchases and price skyrockets, but they are not immune to the corrective nature of Bitcoin. During the most recent Bitcoin corrections, MicroStrategy, Tesla, and Square all saw at least some of their trades in the red. Let’s take a closer look.MicroStrategy owns the most Bitcoin of the corporate giants and has executed the most trades to accumulate their stack. By my count, Michael Saylor has publicly bought Bitcoin seven times. Four of the seven trades have gone negative at one point, with some sitting in the red for a couple of weeks and others for just a couple of days. Saylor has endless resources and advisors, yet he still timed the market "poorly" over half the time. Some argue that Saylor is a fool for continuing to buy Bitcoin near current prices because he could have just bought it all back in the $10,000 range. His conviction was equally strong when price was 20% of where it is now.The above perspective is an incredibly foolish way to view trades and investments. Saylor was not trying to time the bottom, he was merely adding to his stack as his resources allowed. That's a sound investing strategy - dollar cost averaging on a grand scale, even if he is forced to average up.Square made its second Bitcoin purchase for an aggregate price of about $50,000 per coin. By the above logic, Jack Dorsey had worse market timing than Saylor. And Tesla saw a negative return for a short amount of time from the previous correction. Perhaps worse of all in the eyes of naysayers? Tesla’s late arrival to the game. Elon could have bought much sooner and for far less.The excuses and terrible takes are endless, but given enough time, all three of these men and their companies will likely be viewed as geniuses by even their staunchest critics. As traders and investors, we are no different than the corporations above - we are merely operating on a smaller scale. Hindsight is 20/20 and we can all look back with regret for "not buying earlier" or for poorly timed purchases. Things change. Through time we may have access to more cash, similar to how MicroStrategy sold bonds to raise money, or our conviction may grow, similar to how Square doubled down on their position after Q4 interest affirmed their thesis on Bitcoin.If you have accepted that the path to wealth is rocky on the way up, then do yourself a favor and acknowledge that it is equally unstable on the way down. Corporations, you, and I will all be tempted to question how and when we bought and sold our crypto, and look back with regret at the additional profit that we could have made had we done it differently. Don't beat yourself up - we have the pleasure of watching the greats publicly buy-in, proving that they too are not perfect. They provide real-time proof that we are all just human.If you do desire to get this email more often, you can join the paid version!The paid version is only $15 a month and goes out every single weekday. It is just like the issue you are currently reading! Composing this newsletter is how I spend the majority of my time, and I take the fact that my members are paying me very seriously. I would love to have you become a more frequent part of this community.https://www.getrevue.co/profile/TheWolfDen/membersIf you cannot pay with a credit card, please respond to this email and we can get you setup with crypto. If you do want to pay with crypto, I can offer 7 months for the price of 6, or 14 months for the price of 12 for the inconvenience!In This Issue:Institutions Are Not PerfectBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsChart RequestsFREE GIVEAWAY! Wolf Of All Streets X Sovryn 1 of 1 NFT Stablecoins Are A Major Reason To Be Bullish On EthereumThe Token Taxonomy Act Is BackNFTs Could Soon Be Used In Everyday LifeThe Wolf Of All Streets Podcast Ft. Robert BreedloveNexo - Earn Yield, Get A Loan And TradePhemex Trader’s ArenaMy Recommended Platforms And Tools
The Wolf Den #196 - Institutions Are Not Perfect
The Wolf Den #196 - Institutions Are Not…
The Wolf Den #196 - Institutions Are Not Perfect
Make sure to check out the NFT giveaway from my friends at Sovryn, the trading competition from Phemex and all of the amazing things they are doing at Nexo - all in today's newsletter. Institutions are not perfect.The past couple of weeks have shown that not even major institutions can time a Bitcoin top or bottom. CEOs appear to be geniuses when they publicly announce their purchases and price skyrockets, but they are not immune to the corrective nature of Bitcoin. During the most recent Bitcoin corrections, MicroStrategy, Tesla, and Square all saw at least some of their trades in the red. Let’s take a closer look.MicroStrategy owns the most Bitcoin of the corporate giants and has executed the most trades to accumulate their stack. By my count, Michael Saylor has publicly bought Bitcoin seven times. Four of the seven trades have gone negative at one point, with some sitting in the red for a couple of weeks and others for just a couple of days. Saylor has endless resources and advisors, yet he still timed the market "poorly" over half the time. Some argue that Saylor is a fool for continuing to buy Bitcoin near current prices because he could have just bought it all back in the $10,000 range. His conviction was equally strong when price was 20% of where it is now.The above perspective is an incredibly foolish way to view trades and investments. Saylor was not trying to time the bottom, he was merely adding to his stack as his resources allowed. That's a sound investing strategy - dollar cost averaging on a grand scale, even if he is forced to average up.Square made its second Bitcoin purchase for an aggregate price of about $50,000 per coin. By the above logic, Jack Dorsey had worse market timing than Saylor. And Tesla saw a negative return for a short amount of time from the previous correction. Perhaps worse of all in the eyes of naysayers? Tesla’s late arrival to the game. Elon could have bought much sooner and for far less.The excuses and terrible takes are endless, but given enough time, all three of these men and their companies will likely be viewed as geniuses by even their staunchest critics. As traders and investors, we are no different than the corporations above - we are merely operating on a smaller scale. Hindsight is 20/20 and we can all look back with regret for "not buying earlier" or for poorly timed purchases. Things change. Through time we may have access to more cash, similar to how MicroStrategy sold bonds to raise money, or our conviction may grow, similar to how Square doubled down on their position after Q4 interest affirmed their thesis on Bitcoin.If you have accepted that the path to wealth is rocky on the way up, then do yourself a favor and acknowledge that it is equally unstable on the way down. Corporations, you, and I will all be tempted to question how and when we bought and sold our crypto, and look back with regret at the additional profit that we could have made had we done it differently. Don't beat yourself up - we have the pleasure of watching the greats publicly buy-in, proving that they too are not perfect. They provide real-time proof that we are all just human.If you do desire to get this email more often, you can join the paid version!The paid version is only $15 a month and goes out every single weekday. It is just like the issue you are currently reading! Composing this newsletter is how I spend the majority of my time, and I take the fact that my members are paying me very seriously. I would love to have you become a more frequent part of this community.https://www.getrevue.co/profile/TheWolfDen/membersIf you cannot pay with a credit card, please respond to this email and we can get you setup with crypto. If you do want to pay with crypto, I can offer 7 months for the price of 6, or 14 months for the price of 12 for the inconvenience!In This Issue:Institutions Are Not PerfectBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsChart RequestsFREE GIVEAWAY! Wolf Of All Streets X Sovryn 1 of 1 NFT Stablecoins Are A Major Reason To Be Bullish On EthereumThe Token Taxonomy Act Is BackNFTs Could Soon Be Used In Everyday LifeThe Wolf Of All Streets Podcast Ft. Robert BreedloveNexo - Earn Yield, Get A Loan And TradePhemex Trader’s ArenaMy Recommended Platforms And Tools