Perfect Investment Timing Myth

Shaan Puri shares his perspective on the psychological challenges of investing, particularly in volatile markets like crypto. He emphasizes the importance of accepting market volatility and avoiding victim mentality when things go wrong.

• Investment Timing is Never Perfect:

  • On successful investments, you'll feel you should have invested earlier or more
  • On failed investments, you'll feel you invested too late or shouldn't have invested
  • You'll never feel like you "did it right" on any investment

• Volatile Markets (like Crypto/NFTs):

  • High reward potential (e.g., Bored Apes going 140x in a year)
  • Comes with high risks ("wild wild west")
  • Security issues are part of the territory
  • Must accept both upside and downside

• Mental Framework for Handling Losses:

  • It's like choosing to ride a roller coaster - expect ups and downs
  • Recent market conditions: "haven't seen green in months"
  • Lost millions in recent months due to market conditions
  • Can't complain about volatility if you chose to participate

• Avoiding Victim Mentality:

  • Never let yourself be a victim
  • View yourself as the person in control
  • Take accountability for both successes and failures
  • Example: "Nobody stole my NFTs - I let my NFTs be stolen"

• Coping Strategy:

  • Give yourself 90 seconds to fully experience negative emotions
  • After 90 seconds, change the narrative in your head
  • Recognize it's not the event causing pain, but the story you tell yourself about it
  • Take a deep breath and move forward