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...

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

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

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 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.

$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...

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