Embrace the Pain

Focusing on methodology and investment philosophy is crucial when considering a strategy or a switch in investment. Recent performance, whether good or bad, doesn’t always reflect the long-term viability of a strategy. It is concerning when a provider claims something like they plan on consistent x% monthly return; such promises often fall short of reality in the complex world of trading.

My investment strategies, such as “Easiest” and “Patience is a Virtue,” embody a pragmatic understanding of the financial markets, grounded in the fundamental truth that in the world of investing, there are no guaranteed wins every year. Anyone promising otherwise is likely overselling or deluding themselves.

My approach acknowledges the inherent trade-off between risk and reward. Seeking higher returns inevitably involves embracing higher levels of risk. This requires the acceptance of higher drawdowns.

If you are still making the correct trades but experience drawdowns, they are not indicative of failure. Rather they are an inherent part of the investment journey. They are the price paid for the pursuit of potentially greater returns over the long term. While it’s possible to navigate and mitigate drawdowns to some extent, they cannot be entirely eliminated. They must be embraced and prepared for.

By adopting a mindset that embraces the reality of drawdowns, you’re better positioned to weather the storms of market volatility. Rather than being caught off guard or disillusioned by downturns, you’re prepared to stay the course, recognizing them as temporary setbacks within the broader context of your investment horizon.

In the pursuit of higher returns, it’s crucial to maintain a realistic perspective and remain committed to your investment philosophy, even in the face of temporary setbacks. This steadfast approach, grounded in the recognition of both the ups and downs of the market, lays the foundation for sustainable growth and long-term success.

Absolutely, believing in the investment thesis is paramount to successfully weathering drawdowns and staying committed to your strategy. Your thesis should reflect a comprehensive understanding of various asset classes and their potential for positive returns over the long term. An investment thesis should not involve the following:

• XYZ went up last year/month/week. So I will buy it!
• ABC went down last year/month/week. So I will sell it!

I believe there the next 20 years has great growth potential across equities, bonds, crypto, precious metals, and short volatility instruments. That is why I trade all these markets. This broad diversification allows me to capture opportunities across different sectors and asset types while managing risk through a well-rounded portfolio.

Taking it a step further down the risk rabbit hole, the best returns will likely be those that leverage their portfolios 2 or 3 times if they can remain solvent. This means using diversification, trend following, limited-loss leverage methods, and a healthy dose of patience.

Likewise, it will require rarely going against these markets. Frequently betting against the markets makes it so much harder to succeed in the long run. Your investment decisions should be rooted in a rational assessment of market dynamics, maximizing your chances of success over the long haul. Investment choices should never be made based on what went up last year and what went down.

Disclaimer

This is not investment advice for you. This website is designed to talk about investments but it is not designed to give you personalized investment advice. This site contains generic information that does not have the capability of taking your personal risk tolerance, goals, assets, or other factors into account. Therefore, this site and all of its related content is for entertainment, informational, and educational purposes only.

The owner of PatienceToInvest.com is also a trade leader on Collective2.com. We may receive compensation by promoting some collective2 strategies over others. Should you decide to make or avoid any investments or use any service due to the information on this site or related information you assume full responsibility and risks and will not hold howiinvest.com it’s associated sites or its owners responsible. You also acknowledge investing is risky and can result in the loss of all your capital and even more than your original capital in some cases.