Do you struggle to navigate the volatile world of cryptocurrencies? Well, you are not alone. When Kristen received a tip that Elon Musk was going to be on Saturday Night Live and promote Dogecoin, she decided to take a risk and buy some. She bought $95 worth of Dogecoin which then dropped significantly in value. Even professionals who trade and invest for a living go through the same struggles. Today on the Confidante Investor Podcast we discuss the problem of not knowing who to listen to when it comes to predicting the value of cryptocurrencies and other volatile markets, as well as the confusion created by transference and the fear of missing out. Tuning in you’ll find out valuable tips to make better decisions in the future. You’ll hear about the concept of ‘Buy on the rumor, sell on that fact,’ the importance of timing, and position sizing which is usually the biggest mistake people make when they make investments like this. Find out why you should divvy up your investments into tranches, why you should always look at charts and the contrarian approach to investing where you do almost everything against your feelings. For all this and to find out what Kristen should do next with her Dogecoin, tune in today!

List of Topics Discussed:

• How Elon Musk being on Saturday Night Live led Kristen to take a gamble on Dogecoin. 
• The problem of not knowing who to listen to when it comes to predicting the value of cryptocurrencies.
• What Kristen’s thoughts and feelings were when she made the purchase.
• The concept of ‘Buy on the rumor, sell on that fact,’ and why Kristin’s timing was poor.
• The concept of ‘transference’ and how to know whose advice to trust.  
• The biggest mistake people make when they make their first investment: position sizing.
• What Kristin should do next with her Dogecoin.
• Why you should divvy up your investments into tranches. 
• The concept of the secular rising tide and how it relates to volatile cryptocurrencies.
• The problem of opportunity cost: Money invested could be more profitable elsewhere. 
• The importance of always looking at charts. 
• What to expect from the next episode: the technical nature of understanding charts and volatility. 

3 Lessons Learned:

1. Buy on the rumor, sell on that fact, and the importance of getting involved ahead of the curve.

2. The problem of position sizing, and why you should start small when making risky investments. 

3. The contrarian approach to investing: if you want to sell, you should probably be buying.

Credits:
Production - We Edit Podcasts
Music - Future Looks Bright - Nick Petrov

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