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Why should we learn to sell coins to improve our lives during a bull market?

Why should we learn to sell coins to improve our lives during a bull market?

ChaincatcherChaincatcher2024/12/17 10:00
By:Foresight News

When life is secured, you can "gamble in the crypto casino with confidence."

Author: Route 2 FI

Compiled by: Luffy, Foresight News

If you have unrealized profits that can change your life, let me tell you this: you need to sell it. This is not just a suggestion; it's a lesson I've learned from painful experiences. Early in my career, I hesitated to realize profits, and I regretted every moment of indecision. Nominal wealth may fluctuate throughout our trading journey, but the fundamental principles remain unchanged.

One thing I gradually understood is that selling when it’s enough to change your life brings a benefit that cannot be measured in money: a permanent improvement in your life and the lives of those around you. Imagine being able to improve your situation immediately with a click of "sell." It’s wonderful! If you have such an opportunity, I strongly encourage you to seize it.

I know how tempting it is to wait for the perfect selling opportunity: believing that if you just hold on a little longer, you can gain more profit. But the truth is: the perfect timing is just an illusion. The most successful traders I know did not achieve their current success by perfectly timing every peak; they succeeded through consistent profits and maintaining liquidity. They understood early on that converting to cash is a necessary condition for survival in this game.

One of the most liberating realizations for me is that there are always opportunities. This mindset helps alleviate the fear of missing out that traders often feel when considering selling. Yes, letting go of a well-performing position can be unsettling, but remember: holding it out of FOMO will cost you more in the long run.

I often think about what reaching "escape velocity" means: that your financial situation allows you to take planned risks without jeopardizing your life stability. Once you reach that level, you can truly start playing the game and go all in.

How Much is Enough to Retire?

As someone who has been contemplating retirement, I often wonder: how much is enough? While the media often boasts that it requires an astronomical figure, I believe that for many of us, 1 to 2 million dollars might be the sweet spot. Here’s why, let’s first look at it from a TradFi perspective.

In 2022, the average retirement account balance for those aged 65 and older was only $232,710. So, suddenly having 1-2 million dollars isn’t that uncommon, is it? In fact, only about 3.2% of retirees have savings exceeding 1 million dollars.

Okay, I get it, the likelihood of you reading this article being over 65 is slim; you want to retire before 65. When I first heard that Americans believe they need 1.46 million dollars to retire comfortably, I was shocked. But then I realized something crucial: this number is an average. Everyone's needs can vary greatly.

Let’s consider the 4% rule, a common guideline for retirement planning. If you saved 2 million dollars, you could withdraw 80,000 dollars per year. For many, this is enough to live comfortably. Your retirement needs largely depend on the lifestyle you desire. Do you plan to travel the world, or are you content with simpler pleasures? The Bureau of Labor Statistics reported that the average annual expenditure for those aged 65 and older in 2021 was $52,141. Savings of 1-2 million dollars can easily cover this expense.

Choosing where to live after retirement can greatly impact how you use your wealth. A retirement fund of 1 million dollars might feel tight in New York City, but it could provide a luxurious lifestyle in a small town or abroad.

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Psychological Factors

Knowing you have 1-2 million dollars in savings can alleviate a lot of financial stress and allow you to truly enjoy retirement.

Ultimately, whether 1-2 million dollars is enough to retire depends on your personal situation. For many of us, it’s not just enough money; it’s more than we ever dreamed of. The key is to start saving early, live within your means, and focus on what truly brings joy to your life. Remember, retirement is not just about money; it’s about creating a life you love, regardless of whether there are millions in the bank.

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I understand what Fiskantes said above. Once you have life-changing money saved in the bank or invested in real estate, you can easily participate in the market.

What do I mean by "easily"? Well, I’m not saying it’s easier to make money; I mean your mindset is more relaxed. You can make better decisions calmly, letting trades come to you. And even if you lose, at least you won’t lose everything because you already have a safety net.

As Fiskantes said, "The real fun starts here." In this sense, this cycle is more interesting for me. If everything goes to zero, at least I still have a safe fallback. That said, some people work better under more pressure, but I believe that’s not the case for most people.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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