Hey, I hope you’re doing well. In this video, I’m going to give you one simple investing tip that especially applies to crypto. That will probably save you millions of dollars depending on how much you are investing. But I can tell you, it has saved me a lot of money, and I will continue to implement this principle in everything that I do when I invest in a specific asset class. So, out here in Miami on the balcony up here, and I’m winding down the day. And I was thinking, “hey, what is the one thing I actually own?” A condo up in that building, and I put my mom in there. I moved my mom down here from Columbus Ohio to get her out of Columbus Ohio and to start a new career. And how I was able to do that was obviously working really hard, making smart investments. I’ve been working really hard for five years and I implemented this simple investment tip that I’m about to talk about. And I bought that condo at pretty much the top of the market and the top of the crypto market. And last year was late last year or I guess it’s 2021 now because we’re in 2023, but this simple tip is anytime you’re making a speculative investment. It’s hard to give a definition of a speculative investment, but I will say that it is an investment that has not been proven for over 20 years. That’s how I will simplify it.
But the speculative investment typically means that it’s higher risk, so you’ve got to be able to identify when it is a high-risk investment. I also run trading algorithms that we will build, and it’ll enter and exit trades for us. I also invest heavily into crypto even though I know it’s a speculative investment. So, those are two examples of speculative investments. And the principle that I will implement on every speculative investment that I make is I want to recoup my principal as fast as possible. And what that allows you to do is technically never lose money if your investment doubles. So, right when my investment would double, I would take out my principal, and I would be playing with house money. If you guys are in any of our crypto investment communities, you know that I called Caspa at a $6,000,000 market cap. What is it right now? It’s a 90 million dollar market cap, and it was over a hundred million dollar market cap. And I think it’s going to go over a billion dollar market cap. And I knew that when I was investing into it.
But what I did is I put 23k in at a $6,000,000 market cap, and when it went up 3x, because it went up quicker than I even thought. I then pulled down my initial $23,000 that I put in and secured the profit, a little bit of profit as well, and then I’m playing with house money. So, I already recouped my principal. That allows me to take more risk in the investment because I already have my initial money back and I don’t feel, first of all, worried about the investment because I already have secured the original money that I put in it and I’m essentially playing with a risk-free trade. And all I’m doing is playing with house money at that point. And it’s the same thing that I will treat like trading algorithms that I run that I have a significant amount of money in. And that’s it, they produce great returns, but I treat them the same way. Right, I want to recoup my principal. I’m not gonna keep compounding forever. To start, after I recoup my principal, then what I’ll do is sometimes I’ll kick up the risk a little bit, depending on what type of investment it is, or I will just let that thing run for a longer period of time than I would have if I still kept all of my money in it. And it’s using traditional investment principles that like Warren Buffett would tell you to implement, which is, guess what, Rule Number One: How do I not lose money? And Rule Number Two: Don’t forget the first rule.
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