Today Was a Good Day

My new company TrueSelf rolled out registration for our first online course — The Personality Advantage System (based on the Enneagram).

And I ripped off a $26,000 / 20+% total day gain in my options portfolio, with the biggest winners being recently made heavily concentrated bets in Lam Research and Micron.

I made these concentrated bets in these 2 companies on the basis of the stock market being short term #overbought but still rallying and those tech stocks still under participating in the recent rally, in part due to analysts underestimating the Tech Semiconductor Supercycle that is currently underway with trends in: Self-Driving Cars, Big Data, Data Centers, AI/Machine Learning, Cryptomining, Internet of Things and More.

I continue to be surprised about how low the ratio is amongst my friends of capital invested in crypto vs stocks (or any other asset class for that matter).

There is just as big a killing to be made in the stock market as the crypto market if you know how to use options for leverage.

Investing in crypto is just being an angel investor in early stage tech products. And it’s not very smart to be so concentrated in one sub-sector of tech (crypto) at one very early stage of maturity (mostly 100M -$10B with most projects being super risky with no revenue).

For long term financial performance it’s critical to exercise proper diversification across many variables:

• Company Maturity — invest in mature tech companies with billions of dollars in revenue that are changing the world, not just speculative crypto-startups with nearly 0 in revenue.

• Multiple sectors and asset classes (especially if you’re nearing 40)

• Asset allocation of your investments that properly reflects your desired risk profile. And if you pick a hyper-aggressive profile like putting more than 10% of your investable assets in crypto make sure you can stomach the volatility of the return profile. Higher returns almost always entail higher volatility. i.e. don’t buy high and sell low because you aren’t willing to ride out the downs.

One benefit of non-correlated asset allocation is the ability to rotate capital to the largest opportunities.

Due to my asset allocation of 80-90% stocks and options, and 10-20% crypto, I’m now booking some gains in the stock market with the indexes near the top end of their range and rotating at least $5k into crypto with the market near the bottom end of its range.

I’ve gained a ton of benefit from the crypto facebook group I’m in with a number of friends who regularly share knowledge, advice, links, tips and tricks and so now I’m creating an analogous group for people interested in investing and trading the stock market.

Let me know if you’d like me to add you.