Cash Cushions, Non-YOLO Crypto Bets, And Much More

Here's the transcript from today's Live Q&A Chat:

Q. This is more of a psychological question that relates to trading. I know it's impossible to be perfect (or even close to perfect). Take Rocket Lab (RKLB). We owned it, held it, and then sold it...just before it took off and did a 6x. How do you manage your emotions on what could have been? In my investing career, I have regretted not buying only to watch the stock take off (ex. Tesla (TSLA) during the pandemic).

A. It's not easy but we have to transcend the emotions of trading and investing as best as we can. I'd suggest reading Marcus Aerelius' Meditations to help you stay in the moment and being cool instead of greedy, fearful and/or regretful. Everybody who's ever invested has to deal with regrets. Every time I do the first Lifetime call with my lifetime subscribers, I almost always have to listen to a story about how someone didn't listen to me when I was buying either Apple (AAPL) or Meta Platforms (META) or Tesla (TSLA) or one of my other 100 baggers or how they missed some other huge winner that they had a chance to buy in their life. It's part of the process. I don't mean to make it seem like I'm not terribly disappointed and ever embarrassed about not having caught this huge move in RKLB after having held steady on it for a long time and then selling it right before it took off, because I do regret and am embarrassed about it. But I know I can't control everything and I can't change the past and Marcus reminds me that the ONLY thing I control is the present and what I do now. And I keep finding other winners, and I keep disciplined and I keep working hard and thinking hard and looking for the next 100 bagger and I don't have the time or luxury to dwell on my mistakes.