Knights of Daro — [10th Dec] Office Hours

BUILDING CASH FLOW AND ASSETS

You can build both cash flow and asset at the same time, but if you’re not a full time investor then your focus should be primarily on either one of them.

WHY SUCCESSFUL INVESTORS PREFER 4–5X NOT 100–200X ?

It all depends upon which market cycle you are at. Successful investors know they need to invest heavily in the bear cycle.

  1. Achieving 4–5X should be your target.
  2. Don’t get greedy after achieving it.
  3. You should be pessimistic about 100–200X returns.
  4. Always have 20–30% of PF in stablecoins to buy the dip.

ACHIEVED YOUR TARGET? WHAT TO DO NEXT?

If you’ve reached your monthly/yearly goal before the expected time, then move 20–30% in stables to buy the dip and have good portfolio diversification.

  1. Keep following the previous strategies that helped you achieve your target in the first place.
  2. Don’t invest that capital into projects which you don’t understand
  3. Don’t invest into something because of greed or FOMO.

KNOW THAT YOUR INVESTMENT CAN GO TO ZERO -

Crypto is a wild wild west, in this market you should-

  1. Expect the unexpected and make contingency plans accordingly.
  2. Always consider the possibility that your investment could go to zero.
  3. Book profits aggressively.

DIFFERENCE BETWEEN BUYING TOKEN VS BUYING STOCK -

Understand that buying a token/crypto is different from buying stock

  1. Demand & supply
  2. Hype
  3. Emotions
  4. FOMO
  5. Greed
  6. People’s interest
  7. News
  8. Roadmap
  9. Partnerships
  10. PR

WHALES -

Whales are anyone who has $500 million invested in the crypto market/coin/sector. Their small actions may move the market up or down in a significant way.

THOUGHT EXERCISE-FREEDOM NUMBER

99% of the investors/people are unaware about the fact that Inflation and rise in expenses ends up eating their entire salary/income.

  1. We’ve only considered annual expenses 10%, which is 70% or more for most people.
  2. We didn’t even consider the tax bracket as the income increases.
  3. Have not even considered the LTCG tax you have to pay on your gains.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store