Read on Twitter
A short story about size & conviction, and why you don't always need to buy-in with larger size if you have higher conviction in an opportunity.
Here's why...
Here's why...
Back in Defi summer @SBF_Alameda was writing mega threads daily: https://twitter.com/VentureCoinist/status/1287692575168704512?s=20
His final thread gave me 3 trade ideas: $SOL, $SRM, $FTT
•I sized up with $SOL becuase I had highest conviction
•I told my brother & he liked the thesis on $SOL so he bought too
His final thread gave me 3 trade ideas: $SOL, $SRM, $FTT
•I sized up with $SOL becuase I had highest conviction
•I told my brother & he liked the thesis on $SOL so he bought too
Why $SOL vs $SRM or $FTT?
My thought process was based on a few things:
•Solana mkt cap was tiny at 30-50mil, upside huge if any apps start launching there
•Serum was launching with huge mkt cap
•Was not clear how exchange coins would do with defi eating market share
My thought process was based on a few things:
•Solana mkt cap was tiny at 30-50mil, upside huge if any apps start launching there
•Serum was launching with huge mkt cap
•Was not clear how exchange coins would do with defi eating market share
I thought that they could all do well (basically everything was doing well like it is currently) but wanted to be more exposed to highest conviction trade.
$SOL did start moving. Fast.
$SOL did start moving. Fast.
$SOL trade turned into a 2x right as Defi summer was winding down and the whole sector was retracing hard.
Because I sized up I didn't want to lose that 2x so I exited.
My brother was sized as a normal trade and happy to let it ride.
Because I sized up I didn't want to lose that 2x so I exited.
My brother was sized as a normal trade and happy to let it ride.
$SOL is now up ~25x and my brother is still holding.
It's out of the realm of possibilities that it turns into a 100x.
I missed out on a 25x play for my highest conviction trade becuase I sized up.
Here's what I learned...
It's out of the realm of possibilities that it turns into a 100x.
I missed out on a 25x play for my highest conviction trade becuase I sized up.
Here's what I learned...
If you have ultra-high conviction in a trade, it *might* make sense to risk more by sizing up.
But there are other ways to express high conviction in an investment:
•Giving more room for invalidation
•Setting longer time-horizon in advance
TLDR: move slow. Wp @jamesmartin_uap
But there are other ways to express high conviction in an investment:
•Giving more room for invalidation
•Setting longer time-horizon in advance
TLDR: move slow. Wp @jamesmartin_uap
