Investing into the unknown. How do you protect your portfolio?

What would you do if a close friend lost it all by taking on too much risk?

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A few days ago, I shared the story of my friend and what happened. Today, I want us to look at it from a different perspective.

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There’s a lesson there for every investor.
No matter where you are in your journey.

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1️⃣ Never bet more than 10% of your worth after you’ve “made it.” ‍

We need to take risks that are coherent with our current financial situation and goals.

My friend had been making lots of profitable decisions in crypto for the past 10 years, so he was on a good financial trajectory.

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He acted as if he had to climb the mountain from the very beginning.

What he needed was small and very concentrated new risks.

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If my friend had capped his investment, he wouldn’t be looking to recover from a total loss.

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We need limits on how much to expose. 

Even when ideas seem “too good”. 

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More often than not it is better not to touch anything.

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2️⃣ Seek out advice from friends & experts.

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Big decisions deserve a second opinion. 

Ask hard questions before making a decision.

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Consulting someone with a fresh perspective could have prevented my friend from making impulsive moves.

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Share your plans with someone.

Have them challenge you. 

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3️⃣ Take responsibility for your actions.

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Have a positive outlook.

Even when things don’t turn the way you want.

My friend is now focused on working with the community of investors on the project to regain what was lost and move forward.

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It’s not the end of the world. 

It’s a learning experience.

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Have you ever been in a similar situation?
Or do you know someone who has?

Share your thoughts on taking risks. I’m looking forward to hearing what you would have done differently.

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