Tackle Today: No Pain, No Gain
May 20, 2021
≈ What Elon giveth, Elon taketh.≈
Traders,
Elon Musk’s tweets are to Bitcoin as earnings announcements are to a stock. This truth is one reason why many crypto fans are wishing the popular billionaire would stay in his lane. Stick to flying rockets and building sexy cars, Elon.
Musk doesn’t deserve all the blame for the recent tumult in Bitcoin, though. Volatility is the digital asset’s middle name. We’re not talking about a bond or a CD, for heaven’s sake.
As nasty as the swoon has been, it’s not exactly unique. Do you know how many times Bitcoin has fallen 30% from an all-time high since 2017?
Ten Times!
If you’re upset or surprised over the recent tumult, then you’re obviously unfamiliar with the nature of the beast. There’s a lesson in this – even if you don’t speculate in crypto.
You must familiarize yourself with the typical volatility exhibited by any asset you invest in. If you’re going to be a long-term investor in something, you must stomach the ups and downs along the way. Otherwise, you won’t make it to the pot of gold at the end of the rainbow. This is true if you’re buying stocks, bonds, commodities, real estate or crypto.
The inherent appeal to higher volatility assets is their opportunity for higher returns. Though bitcoin has declined more than 30% ten times over the past five years, it’s also up approximately 50x. Diversification and proper position sizing are the two things I’ve found most helpful when investing in something for the long haul.
#TeamTackle
Chart of the Day
Bitcoin Drawdowns
The drawdowns in Bitcoin have been insane along the way. Those that have ridden through the gut-wrenching roller coaster deserve their riches. Investing in stocks for the long run requires a similar willingness to look beyond the short-term volatility.
Video of the day
Trade Masters
Join Coach Emily, Greg and Mark for another edition of Trade Masters
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Cash Flow Club 8:30 PM EST
Join Gino Poore as he hosts the weekly Cash Flow Club
Financial freedom is a journey
The Tackle Today series is brought to you by Tackle Trading.
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
# Sign up now for a 15-DAY FREE TRIAL #
Legal Disclaimer
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.
