Slow and Steady Wins the Race

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Summer is approaching, you know what that means…

Time to work on that summer bod.

It’s that time of the year when people want to start working out and getting in shape. Some might panic and feel like they need to quickly rush and crash diet. But one of the biggest mistakes you can make is going too extreme.

“I’m gonna on a super strict diet and go hard as fuck at the gym 7 days a week. No pain, no gain.”

You’d most likely quit after a week. Hell, I wouldn’t even last 3 days.

Balancing rest and intensity is important when lifting (and fitness in general). Overtraining and pushing yourself at max intensity every day will lead to burning out. Or worse, you might hurt yourself and set yourself back. It’s a marathon, not a sprint.

And it’s the same with investing.

When you get into the investing game, you might think you need to crank up the intensity: Watch the market 24/7. No sleep. Try to maximize every %. Take more and bigger risks.

But like with overtraining, that’ll lead to burnout or worse—losing it all from a risky investment.

It’s counterintuitive, but you’ll get the most gains over the long run by not trying to maximize your gains.

A consistent workout plan is much better than a high-intense one where you quit after a week or injure yourself. Likewise, you’re better off sticking to a consistent investment plan instead of going extreme and chasing big returns.

Instead of chasing the hottest tokens and trying to squeeze out every % you can from your portfolio, patiently dollar cost averaging into BTC + ETH + index funds every month will put you ahead over the long run. And it saves you a lot of stress.

Compound interest is a powerful tool. But it requires two key ingredients: time and patience.

The more time you give your investments to grow, the greater the power of compounding. Compound interest can’t work its magic if you’re constantly jumping in and out of the market chasing short term gains.

Time in the market > timing the market.

In today’s fast-paced, social media-driven world, it can often feel like we’re in a race to be smarter, fitter, and richer.

But like in the classic story of the tortoise and the hare:

Slow and steady wins the race.

Peace,

Fifty Sat

P.S.

Next week, we’re going to talk about a dope NFT use case: music.

Song of the Week