How to make a killing in the markets long term! 100% works

9 mo
8 Min Read
1671 words

You call yourself a long term investor but are you really?

Do you even really know what you are invested into? If you are invested in stocks, cryptos, currencies are commodities, do you know why you invested in them. Do you understand everything about each of the companies behind those investments, what partnerships they have, how their balance sheet is looking, all the fundamentals? What if you bought into something at $50 and you watched it drop down $30, down to $18, down to $12. What are you doing? Jumping ship or watch the price tank?

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The great thing is the easiest option is the best long term. You, well... you watch the price tank and wait for better days and better days will come. Let's say you invest in a holding company A for $1000. Alphabet or Meta would be examples of holding companies. You did your research and saw the company has a positive cash flow, no debt and it provides goods and services that you think will still be in demand in 20-30 years time.

Let's say HoldingCompanyA owned 20 companies that are collectively worth $200 million. They have 100 million shares issued. These shares do not reflect the value of HoldingCompanyA, in the same way, SPI's hive-engine price is not SPI's real price. If you invested your $1000 and got 500 shares at the cost price, you would have paid $2 each. Now if the price of HoldingCompanyA were to drop to $1.50 and then $1, you might panic sell. You might be thinking why would you panic sell when you know the shares are backed by $2 of assets? That's the thing, most people dont know because they dont do the research. If you are clued up, you would know to invest more because when the market turns and it always turns, you could potentially make a killing.

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Most people have no idea why they invest in anything. Im no better to be honest. How many millions of people own Telsa stocks or bought into the DOGE because of Elon Musk? Lots of us will invest in our favourite brands just because we like them. Nothing wrong with that but a little research can go a long way.

After you pick your investment, you hold. The longer the better because the market goes through cycles and the more cycles you can go through the more profit you can make. As I said, lots of people call themselves long term investors but dump when the market crashes because they dont know what they are invested in, they dont understand it so they dump it.

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Think of every ever investment you ever made. I mean stocks, bonds, cryptos and everything else and think about what you still hold today. Damn I wish I keep my google shares for about a decade longer than I did, I'd be the fooking man today if I did but I didn't and I sold them for a small profit that I frittered and pissed away. Most of us will have sold more things than we hold either at a loss to panic exit, sell for a small profit or sell to fund another investment.

The correct thing to do is just hold, if you know your investment is sound and the people running it is productive, you just hold. Look, none of us a good enough to time the market, you are much more likely to lose money and the stress is pointless when you can just hold. All asset classes go through cycles with most being different, the property markets cycle lasts roughly 18 as an example. I'd assume cycles lengthen over time and the property market is older than the stock market. Probably not but maybe.

When markets go down, they can go down alot and it might happen more frequently then you think. Over the past 100 years in the stock markets, 10% declines in the overall market happened 51 times so roughly every 2 years. These are called corrections. 25% declines in the overall market happen on average every 6 years. These are called bear markets. Markets can go down at any moment, nobody knows when, nobody can predict it and nobody can guess how deep the cut will be.

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When you know the market is going to go down, you'll understand that your investment value will decline but that's ok because you're not selling today. After you understand that your investments could drop 20-80% over the course of 2-4 years coupled with understanding the fundamentals of your investment, it should make it really easy to hold because you know that the markets will always go up again. They go up and down, up and down.

Holding an index tracker is the easiest way to get more exposure to the overall markets. History shows that stock markets will increase by an average of 8% per year and the value of the stock market doubles every 9 years. When you know this, it really easy to hold and double up every 9 years. Going through 4 cycles would take roughly 36 years and yield a x16 return based on a 100-year history. If you in your 20's, you could go through 5 cycles for an x32 return. 40-50% of your profit will be eaten by inflation but that's ok because anything over inflation is good because you'd be increasing your spending power. Bank accounts, bonds, anything under 4% is no good unless that's a loan percentage 😉 Borrowing under-inflation can be good.

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Back to holding, that's all there is to it. You buy and hold, you buy more and you hold, you see the market is down 25% for the past 6 months, may be a good time to invest some more and then hold. Individual stocks are one thing but index trackers are another and one thing is for certain with index trackers, the markets will always go up and they will always produce a profit. If you look at a 10-year chart, you'll see that they will always go up. If you lost money on an index tracker, you only sold at the wrong time. I know that sounds bullshit but information translates to $ with investing or if you are investing money to might need to pull out, you shouldn't be investing. Build a safety net fund first.

So, my point is to research and know what you are investing in. Everyone says this but I really mean it, looks at the balance sheets even if you dont understand them, you do it 10 times and you'll learn something, you do it 100 times and you start to understand what everything means, you do it 1000 times and everything makes sense and you can see things you never saw before, things that could make your mind up on investing or not.

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After you pick your investment, hold it. If you are lazy, that's ok, invest in an index tracker like the sp500. You buy it and just hold it. It's very boring and not alot happens day to day in stocks but that's perfect because you can just buy them, set them on auto reinvest divs and forget about them.

Personally, I've stacked alot of silver, I bought most between 2012 and 2017 and was lucky to place my biggest ever order when the price was under $12 per oz. Not timed just lucky as I'd just come into some money. I've never sold an oz and because of that, im fairly certain I'll never lose money on silver. My avg cost per oz is under $15 and all I've done with it is hold it. It could drop 20% that's ok, that's gonna happen sometime. With silver today at $22 today. I'd bet its next $10 movement which would bring it to either $12 or $32 will see it at $32. What about the next $2 movement? i dont care. I could have invested in the stock market and doubled my investment but I did not know back then what I know now and silver looked really good at the time as a store of value. Either way, just hold. That's all it takes to be a long term investor, you dont panic sell when the market crashes, you dont sell when the market is up to buy a new car, you just hold. Adding more is cool, infact, it's advised. Per cost averaging and buying the bear markets could boost your overall ROI.

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Anyways, I've gone on long enough. I see alot of money being made in crypto and the good times will not last forever. Sorry to the Debby Downer (sorry if you name is Debby) but what goes up will go down and then up again, and then down again and this will last for a really long time, longer than you are your children will live. Could be a good idea to maybe convert some profits out to traditional investments because it's never a bad idea to have nest eggs in different asset classes.

I'd like SPI to be involved with stocks but im worried about holding the stocks in my personal account because that would mess about my tax-free benefits. I could always use a mobile app, im ok with doing KYC. Anyways, im still hopeful for a bullrun this coming summer. We will know the state of the market much better in September as I think we head into 2023 bearish, very bearish. Bargains will be had and SPI will be there to snip up all the best shit at 90% off.

Hoped you enjoyed the post. Holding is the only way to go, the only way to be able a long term investor. The stock market doubles every 9 years, the crypto market is faster. There's is nothing wrong with holding BTC in a cold wallet, it'll probably still outperform the stock market for another decade.

Have a great day folks.


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Agreed! I'm in for the long run in pretty much everything I ever invested.

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Long-term investing and dollar cost averaging is where true wealth is created

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Yes that is were true money is created and its also were hug loss is created. Before investing have a good investment plan.

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Always have an exit plan as well as an entrance plan. Most people have neither and the rest usually have just 1

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Yes it's very important in crypto investment because crypto does not respect any one if you fuck up crypto will humble you. Your $1000 may turn $25

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Khal is correct, i never spoke about selling in the post but having an exit plan is as important as an entering plan. It's only paper profits until you cash it out. And like you said, you can get wrecked in crypto pretty easy

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You seem to be ok with selling assets and putting the money in other places.

I've learned lots by watching this space.

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Very true. I didn't have an exit plan until very recently. One day I was considering moving out some crypto to do something and I realized I didn't really know how to do it in a structured way

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Entry and exist plan is very important in crypto. If you fail to plan in crypto you have plan to fail

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Ahahaha.

And then you just let the $25 sit, because you may as well...

Or at least me.

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That exit plan though.

It's like my gas tank... it can make it to the next station right?

lol.

I am the worse with keeping the gas tank full.

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Hhahaha that’s funny.

Yeah my plan is not unlike my gas strategy. Whenever I pass my favorite station (yes I have a favorite nearby), I fill my tank to full even if I’m at half a tank.

My investing is not all that different, take profits slowly at the tops even if I don’t need to. Dollar cost average in, dollar cost average out

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You can say it till you are blue in the face and then there we will see people running to the 300% interest on an asset that losses 90% of its value.

Ive done that before and "won" - for weeks I felt guilty because I knew taht I hadn't won as a team, we had not all grown together... someone had "lost."

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But its so easy to look at it when it is "down" and panic.

I have to constantly remind myself that I am building for 2048.

Seems like a long time from now but we are already 4.5 years down.

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That's true. My next article will be related to that.

We're hardwired to look for instant compensation so it's very hard to keep ourselves in check and remember that we're building for the future.

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We are like the tiktoc generation of investors.

We want to learn about our investments in six seconds, and buy lambos within the week.

Let's keep slowing it down.

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Hodl by name, hodl by nature!

DCA long term has paid best, even the last 2 years, you should be nicely up .

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If you Google DCA BTC, you’ll get a cool website that shows you the hard statistics. Dollar cost averaging into great assets is the key to long-term wealth creation

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Thats the one i was thinking of. Even though bitcoin was down like 6%, DCA is up double digits!!

I made an article 1 month ago about it:

https://peakd.com/hive-167922/@mypathtofire/bitcoin-performance-review

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I got 90% of my silver, BTC and stocks from dollar-cost averaging.

With a solid investment, DCA plus compounding will make you more wealthy 100%. If you can beat inflation, you win in life

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Thanks for the tip. I think DCA is the way to go and I try to set it up on auto-pilot and not think about it.

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Investigating before investing is the better decision to make. Understanding what you are investing in is the best.

I am glad you shared this.

Cheers

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Research if only for 30 minutes a week can make all the difference.

Thanks for checking the post out and dropping some feedback.

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Right, even passive income is not really "passive" you have to know waht you are doing and pay attention to what the heads of what you are investing in are getting into.

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Well, I consider myself a crypto investor, but a long term investor is another level, it's like onealfa or taskamaster, who are heavyweights of Hive and their tokens.

I bought HIVE when it is at 0.84 cents and now down 6%, but I am holding because I know the project is solid and can take back its value of $3 or even more, I am stacking for the future.

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Stack great assets and dollar cost average into them. You can’t lose over long-time frames.

People get sucked into FUD and FOMO cycles, that’s when things get dangerous

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Why do you not get HIVE for free?

Anyways, if you are holding long term, no need to care about today's price. Think about how best to turn it into more HIVE 😁

Great comment, thank you

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Good investment strategy is quite boring, just like compounding interest.

I can’t help but try to be smart, play the market or buy more splinterlands assets.

Now that I’m thinking about it. I might actually be turning into a long term holder of those assets.

But when that next shiny thing comes along I might be tempted to sell some stuff to be able to buy in… 🤪

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Boring but rewarding!

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oh that’s for sure

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I agree with Khal.

The novelty of being involved with lots of investments and chopping and changing funds about is fun as your trying to give yourself a better chance of hitting a 100x moonshot. You soon see that getting that magic 100x is damned near impossible and compounding down 15-20%.

Solid investment plus time equals mo money. Mo time, mo money.

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yes, i just need to reign in my ego that is still thinking that i can beat the market and make the safer, more boring play, as that is more rewarding in the long run 💪

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yeah man. There's some crazy stat out there that says something like, the stock market is up like 1000% in 20 years. If you were out of market for the 13 most profitable days in those 20 years, your ROI would drop to like 450%.

Buy and hold. Your ego will inflate when you start seeing zeros being added to your net worth.

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to try and time those 13 days correctly is impossible. very convincing 🤔

so let’s hodl and compound

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you can time if you hold :)

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it is the catch-all version of trading 😉

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Rising star is pretty shiny right now.

I have to tell myself that buying 1,000,000 starbits so that I can get a special card is not a good idea.

I'll buy the bits in small pieces instead of wrecking my other accounts cause this one looks shiny.

Though I did sell some BEE that I didn't have a plan for.

Shiny thing syndrome is real in the cryptoverse and so easy to get sucked into on HIVE because so much of the money is connected.

Ahhhhh.

HODL

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