Conviction and Patience Win

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conviction
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#1

Amazon’s largest stock price declines:

  • 57% from Apr '99 to Aug '99
  • 94% from Dec '99 to Sept '01
  • 56% from Oct '03 to Aug '06
  • 60% from Dec '07 to Nov '08

Those with conviction & patience can withstand great volatility. Crypto is no different.


#2

As a long time stock trader, I can say empathetically, that’s not the only difference!

  • Stock market has been around for a long, long time, so it has a history that can be studied.
  • Stock market and Forex is highly regulated, so the manipulation that happens in those markets is child’s play compared to what’s going on in cryptos. Albeit, manipulations on stock market are orders of magnitude more money involved!
  • Stocks have transcended beyond pure speculative plays to survival and growth of the fittest.
  • There are balance sheets behind the companies (i.e. fundamentals) that can be graded with well-known, well-established accounting principals. We’re still figuring out appropriate metrics for grading token fundamentals.

Comparing Amazon from IPO to maturity vs. the 1000’s of ALT coin ICO’s to, well, what? Nothing’s mature, yet…

Now, if we’re talking penny stocks (OTC) then I could definitely say, you have to have pretty much same conviction and patience to play that game as you do cryptos since the companies behind those pinkies are hard to research and pin down on fundamentals and are often outright scams and regularly subjected to pump and dump schemes.


#3

Forex manipulation does happen, I worked for a certain company that did it with $1T
Move $1T around various countries causes shifts in pricing which this company would profit from.

The most amazing part that I could never get my head around was:

The $1T didn’t exist, it was an I.O.U

Yet they make millions from it per day.

Stay Fishy


#4

Sounds super interesting!