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  • and again, it's not enough money to where I'm gonna have to really worry about.

  • But the upside is there.

  • And it's this concept you've spoken about before called asymmetrical investing.

  • And it's again something I never saw on Wall Street because we were used to investing in bonds or stocks, which is more like symmetrical investing.

  • I mean, you just kind of highlighted on it.

  • But what is asymmetrical investing?

  • Maybe just toe explain it a little clearer to people.

  • Eso asymmetric investing is where you look at the potential of an investment and you want its potential upside toe vastly outpace the type of investment you have to put into it.

  • So you talked about symmetrical investing, like right now, if I put $100,000 in three s and P 500 I'll make maybe $8000 a year from the S and P 500 right?

  • So But I'm having to risk 100,000 to make just 8000.

  • That is the opposite of an asymmetric investment, right?

  • So whereas in an asymmetric investment, you can say okay, if I put up $500 I can maybe make $200,000 or $300,000 or, in some very rare cases, a million dollars.

  • That's an asymmetric investment where you're upside vastly outpaces three amount of money that you could potentially lose.

  • So the way you make a symmetric investing work for you is you use small uniforms, position sizes.

  • I'm going to repeat that again.

  • The way that you make asymmetric investing work for you is you use small, uniformed position sizes this way.

  • You don't under own a winner or over own a loser, or put yourself in a position where you put yourself in the poor house.

  • If things don't work out, you never, ever want to risk your current lifestyle for the hope of a better lifestyle.

  • You never want to do that.

  • And with crypto, you don't have to.

  • Everybody has.

  • I was just gonna say everybody, but many people have, you know, four or $500 to put into a crypto $2500 to put into five Kryptos that could potentially change their life.

  • Many people can do that, Um, and if you can't, if that's a stretch for you and this is not for you, I'll tell you that unequivocally Don't ever put yourself a risk thio to try and make more money because you'll probably sell too soon.

  • You'll get scared and you'll miss out on the games.

  • Plus, it doesn't make any sense to imperil your net worth, uh, for the hope of something in the future that that makes no sense at all.

  • Yeah, but like just a za comparison, if you take some of the hottest you know, tech stocks, I think they call them like the Fang Group, which is like the Facebook and the Amazon and the apple and the Netflix.

  • Google's that kind of thing.

  • I mean, if you look at those which are kind of the hot ones that outperformed the S and P 500 I mean, how do those compare assed, faras asymmetric gains to like the kryptos you're talking about?

  • Is there any comparison?

  • There is a comparison you do get.

  • I mean, you do get asymmetric returns.

  • The problem with those is that you there's another trade that takes place there, and the trade is your life.

  • Three years of your life that you have to wait.

  • So if you take something like, uh, like apple, you know for Apple to move 8000% which is one of my other coins have has done in the past.

  • And under a year you have to wait 25 years.

  • Get 8000%.

  • Look at Netflix.

  • You have to wait, I think 14 years.

  • So it's a different trade off.

  • Yes, you've got the return.

  • You got that asymmetric risk return.

  • But look, look at the other the hidden cost.

  • How much is 14 years of your life worth today at your age?

  • How much is 14 years worth billions?

  • It's without price.

  • If you could reach your hand through time and snatch back 14 years of your life, would you do it?

  • Of course you would.

  • And that's the other asymmetric beauty of crypto that people don't talk about.

  • Because not only are you changing and moving the needle in your life financially, but you're you're pulling forward 14 years worth of gains so you could enjoy them now.

  • Not when you're in your late fifties or early sixties, and that, to me, is it's priceless.

  • Wow, my wife.

and again, it's not enough money to where I'm gonna have to really worry about.

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ASYMMETRICAL INVESTING: What Is Asymmetrical Investing & How Is It Different - Teeka Tiwari

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    林宜悉 posted on 2020/11/10
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