Why You Need a Fun Portfolio

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Investing is 90% psychology.

You could be an intellectual genius but still be a terrible investor if you can’t control your emotions.

One of the ways I like to keep my investing psychology in check is by having a “fun portfolio”. This portfolio contains meme coins, NFTs, and other things that I wouldn’t touch with a ten-foot pool in my serious long-term portfolio.

Think of it like having a cheat meal.

Trying to stick to a strict diet can lead to potential binge-eating episodes. Having a cheat day gives you a psychological release and helps keep your cravings in check.

The same applies to investing. Having a fun portfolio scratches your itch without putting too much money at risk.

But just like cheat meals, moderation is key. Here are 2 important rules I follow:

1. I limit it to 10% max of my total holdings. This is what I’m comfortable with going to zero without losing sleep.

2. I use a different wallet that’s separate from my other accounts. This helps me mentally label that it’s fun money and prevents me from dipping into my long-term portfolio.

Compounding growth is the key to wealth. And the longer you can leave your money growing uninterrupted, the better. Having fun with 10% of my money lets me leave the other 90% alone.

Greed is part of human nature. Always has been and always will be.

Instead of trying to fight your psychology, understand it and use it to your advantage.

Peace,

Fifty Sat

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