confessions

I had twice a max portfolio drawdown of 30-40% from ATH when I was heavily betting on small-medium caps - which freaked me out & led to improving my risk management sig (bet sizes, cut losses..) - until this cycle where I went for the deadly combo of tax optimization & leverage 😆

Still wondering why the tax systems offers such weird incentives.

Case 1: you make 10k, sell, pay 50% = 5K taxes & end up with 5k.
Case 2: you make 10k, hold = lose 70% & make a 2x again, pay 0 taxes and end up with 6k.

Your country would be much better off with Case 1 vs Case 2 but personally you're better off with Case 2 (though you don't know if the coins will do a 2x again after being 70% down or the drop another 70%).

Obv there's path dependency and leverage could kill the strategy 😆 

Q1: Will your hodl bag go back to 50% of ATH?
Q2: Can you compound returns instead of hodling just 1 bag?