If one bad week gives you jitters, you’re invested too aggressively!
u/DaveMoneyGuyBglehead made a similar post in another thread about equities, and thought it would fit here. The upshot: “Many people, especially young people, overestimate their risk tolerance.” If this “pullback is causing you to reconsider your investment or consider cashing out, you were invested far too aggressively.” If you are invested near 100% BTC, you need to be mentally prepared for a 60%-70+% drawdown at some point. Larger drawdowns have happened before (June 2011: 99%; April 2013: 83%; December 2018: 84%;), and will likely happen again, eventually. Even the more muted 2021 dip exceeded 54%. Many times, volatility is the price of higher returns. submitted by /u/Res_Ipsa77 [link] [comments]
u/DaveMoneyGuyBglehead made a similar post in another thread about equities, and thought it would fit here. The upshot: “Many people, especially young people, overestimate their risk tolerance.” If this “pullback is causing you to reconsider your investment or consider cashing out, you were invested far too aggressively.” If you are invested near 100% BTC, you need to be mentally prepared for a 60%-70+% drawdown at some point. Larger drawdowns have happened before (June 2011: 99%; April 2013: 83%; December 2018: 84%;), and will likely happen again, eventually. Even the more muted 2021 dip exceeded 54%. Many times, volatility is the price of higher returns.
[link] [comments]