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It's a rule of mine to avoid any financial area that looks, acts, and talks like a mania after reading Charles Mackay's "Extraordinary Popular Delusions and the
by mwattsun 5y ago
It's a rule of mine to avoid any financial area that looks, acts, and talks like a mania after reading Charles Mackay's "Extraordinary Popular Delusions and the Madness of Crowds (1841)," which I discovered at random in a strip mall bookstore in Rhode Island. Reading it saved me over $300,000 dollars before the dotcom crash because I sold everything and got out (my timing was very lucky.)
Crypto, NFT's, blockchain & web3 are currently in a mania phase so my 2022 resolution is to aggressively ignore them so I don't get sucked in before the inevitable correction. I can't afford to be stuck with a pile of tulip bulbs.
- MuffinFlavored 5y ago> Reading it saved me over $300,000 dollars before the dotcom crash because I sold everything and got out (my timing was very lucky.) Are there not other books that you could also read that would tell you to buy mutual funds tracking a broad market index, hold, never sell, no matter what? aka don't time the market
- mwattsun 5y agoBuy and hold is a good strategy if you never need to touch the money. However, life happens and I got divorced, so I had to hold on to my profits or be left with nothing. It's yet to be determined if a buy and hold strategy is a good one for crypto. I am aware of the price rise since 2012 but as the old adage goes "trees don't grow to the sky." Trees built on wild expectations and promises of glory, like were made before the dotcom crash (the internet has rewritten the rules of the economy!) seem to me to be more likely to topple over than keep growing taller.