{"id":16366,"date":"2020-07-25T07:30:50","date_gmt":"2020-07-25T11:30:50","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=16366"},"modified":"2020-07-25T07:30:50","modified_gmt":"2020-07-25T11:30:50","slug":"the-lesson-i-learned-after-losing-it-all","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/the-lesson-i-learned-after-losing-it-all\/","title":{"rendered":"The Lesson I Learned After Losing It All"},"content":{"rendered":"

Mike’s note: <\/strong>Since the March market crash, both new and experienced investors have flooded in and tried to trade the market for a profit. But both groups are still prone to making avoidable mistakes…<\/p>\n

That’s why I wanted to share this essay from the editor of The Palm Beach Daily<\/em>, Teeka Tiwari. He shares a personal experience from early in his career where he made risky bets instead of following a few key strategies that could’ve saved him millions.<\/p>\n

Read on below to see how he went from losing it all to now being called America’s No. 1 investor…<\/a><\/p>\n

\n

It was December 2017. We were wrapping up a banner year at my flagship cryptocurrency newsletter, Palm Beach Confidential<\/em>.<\/p>\n

Now, back in January 2016, I’d realized cryptos were the next big investing megatrend. I knew we were at the beginning stages of the biggest story of my investing career.<\/p>\n

My publishers at PBRG were skeptical at first. But I eventually convinced them to let me share my crypto ideas with hundreds of thousands of subscribers who rely on us for income-producing and money-making ideas.<\/p>\n

The rest is history…<\/p>\n

Bitcoin rocketed from about $400 per coin when I first recommended it in April 2016 to nearly $20,000 in December 2017. Ethereum did even better – and has been up as much as 15,821% since then.<\/p>\n

My top recommendation rose as much as 151,323%. Even after the 2018 crypto pullback, it’s still up a staggering 8,353% today.<\/p>\n

As you can imagine, many of my readers made buckets of money. Some became “overnight millionaires.” And others built on their already sizable nest eggs.<\/p>\n

While I’m extremely proud of these results… I’ve always advised against going “all in.”<\/p>\n

One thing I’ve always been clear on is: Cryptos are ideal asymmetric bets. Put simply, placing relatively small, equal amounts of money on my well-researched picks can lead to life-altering gains.<\/p>\n

I recommend putting no more than 2% of your liquid net worth into cryptos. They’re intelligent speculations. And my system is the best in the world at sniffing out the next 100-bagger cryptos.<\/p>\n

But if you truly want to build long-lasting wealth, you need to generate multiple<\/em> streams of income.<\/p>\n

It’s a lesson I learned the hard way – and one of four that I’ll share with you today…<\/p>\n

How I Lost It All<\/strong><\/h2>\n

I made my first big haul in the early 1990s, buying beaten-down junk bonds. And in the mid-1990s, I started making money hand-over-fist in technology stocks. I was making a fortune.<\/p>\n

But by late 1998, I’d lost it all. You see, I made a terrible mistake…<\/p>\n

Instead of taking small <\/em>bets on high-risk\/high-reward ideas, I was taking massive stakes.<\/p>\n

By the time the 1997 Asian financial crisis rolled around, I’d built up a substantial portfolio. But I stuck around too long and got too greedy.<\/p>\n

And when the market went against me, I made bigger and riskier bets. I lost all perspective and was investing for my ego, not my bank account.<\/p>\n

Within three weeks, I lost everything I’d made and more. I went from wealthy to poor in less than a month. And ultimately, I was compelled to file for personal bankruptcy.<\/p>\n

It was a stunning reversal. Here I was, the golden boy who finally got his comeuppance.<\/p>\n

I learned many lessons on position-sizing, risk management, and diversification. But one of the biggest lessons I learned was: You can’t build your portfolio solely with high-risk assets.<\/p>\n

Four Wealth-Building Lessons<\/strong><\/h2>\n

To truly build long-lasting wealth, you need to generate multiple, reliable streams of income<\/u> – in addition to your riskier strategies.<\/p>\n

Please reread that sentence. Don’t dismiss it as unimportant. My whole life changed when I embraced this investing philosophy.<\/p>\n

And you can open up the same road to wealth I did by doing the following:<\/p>\n