I’ve always had the mindset of an investor. I remember when I first learned the difference between “value” and “price.” It was at an extremely young age, too. I don’t remember how old exactly, but I remember where I was and what it involved.
Sometime back in the early 2000s, I was at either a county carnival or some city festival with my pops. I remember walking around looking at all the cool sights and seeing a bunch of kids playing games, running wild, having a blast. We walked by one of those high striker games – the things where you take the sledge hammer, whack the puck, testing your strength, in an attempt to suspend the puck until it hits the bell at the top of the high striker.
I stopped and turned to my dad to ask him if I could give it a go. He said, “knock yourself out.” I went up to the guy running the stand and asked him how much it cost. He replied to me, “$5 sonny boy.” I thought about it for a while, thinking to myself, “it’s just $5.” But I thought about it twice. Even though it was only $5, it was my dad’s $5, not my own. I thought about how quickly my turn would be up, and what a waste of $5 it would be just to hit a stinkin’ puck at the bottom of a rigged lever the world’s strongest man probably couldn’t even suspend to the top.
I said to the man, “nah, I’m okay, thanks anyway.” I walked away and joined up again with my pops. He was quite proud of me in that moment because he knew most other kids would have just went ahead, spent the $5, hit the puck upside the head with the hammer, and then went to the next game just to do it all over again. He knew in that moment that I had realized the true “value” of money was not worth a temporary feeling of pleasure. Besides, my dad worked hard for his money.
Money is extremely hard to make, but extremely easy to spend. $5 may not seem like a lot, but to some people, it is. It was from this point forward that I had an investor’s mindset. Rather than just have your money sitting there, why wouldn’t you put it some place where it has the potential to grow exponentially. Now this is not always the case. Some investments get the best of you, but you can’t allow your emotions to run the course with you during harsh (investment) times.
Investing money, for me, has been something that I do not currently rely on. I haven’t made hardly any money at all investing, but I really am not worried about this right now. The fact of the matter is, I don’t need the money I have invested right now. That’s exactly the point. If I needed the money I have put back (for later) right now, then I wouldn’t have invested it to begin with. I am thinking more by the time I am 30, 35, 40 years old when, hopefully, my investments will be worth some real money.
If something were to take off before this time, then surely, I wouldn’t hesitate to sell and take my profits. But this is the hard part about investing – knowing just when to take your profits. When something runs, we often get optimistic and think to ourselves it will keep going on the up and up, and then we lose out on our chance when it was available. This has happened to me numerous times, mainly in the stock market. But, as I said earlier, I am not going to allow my emotions to get the best of me, especially since these are all things of the past. The past is the past and nothing humanly possible can be done to change previous outcomes.
What we can do, however, is learn from these experiences, take them forward with us, and use them to our full advantage. When the next bull run hits, I am not going to act tentatively toward taking profits, even if something runs higher than what I sold it for after the fact. I have a good feeling about where my money is setting at the moment, and I can confidently say I believe highly in crypto. I think we still have some time before the masses understand the importance of what crypto and blockchain technologies can bring to society, but this isn't stopping me from increasing my stake in something I think is going to change the way financial institutions operate in the future.