#trends 0010 : Asymmetric Bets

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Hi All,

First off, the last 5 posts I wrote here a few weeks ago covered the main areas I think will do well in the coming 5-10 years which were Commodities, Blockchain, FinTech, Healthcare and Innovation. I haven’t written since due to an incredibly crazy schedule, so I’m thinking of making this a monthly newsletter instead of weekly.

Now let’s talk Asymmetric bets. This one simple phrase changed my entire mindset around investing. I remember when I began to learn about investing, I used to hear this term quite frequently from really seasoned investors. I had no idea what it meant and decided to look into it. Essentially, it means that you have a lot more upside potential than downside. More specifically, it is when your minimum downside potential is 50%, but the potential upside is 10x.

Once I figured this out, I started to apply it to stocks I researched. Every time I find a stock now which I really like after doing all the research, I take 50% off the current trading price and ask myself is this the absolute bottom of where I think this may go, based on historical charts and patterns? If not, then it’s probably best to wait it out for a better entry point.


🔥 IPO Hotlist

There isn’t anything interesting I see for the week. With that being said, there were a ton of IPOs and SPACs that have occurred in this month alone, I could not even keep up. Some that stood out to me:

IPOs

  • Bumble Inc. ($BMBL)

SPACs

  • Churchill Capital Corp VI ($CCVI/U)

  • Churchill Capital Corp VII ($CVII/U)

  • Sustainable Development Acquisition I Corp. ( $SDAC/U)

  • Quantum FinTech Acquisition Corp ($QFTA/U)


⚖️ Watchlist

Stocks I will be watching for potential upside/downside swing plays:

  • GameStop Corp. ($GME) - The guy who started the whole GameStop phenomenon doubled his position on Friday. Word of that started to go out which may cause this to pop on Monday and into the week.

The following are Blockchain plays. If Bitcoin keeps going up, then these will probably go up as well:

  • Amplify Transformational Data Sharing ETF ($BLOK)

  • BitFrontier Capital Holdings Inc ($BFCH)

  • HIVE Blockchain Technologies Ltd ($HIVE)


🍯 Bitcoin

Bitcoin (BTC) continues to rally above the $55K mark. What is interesting here is that all the other cryptos are beginning to rally as well. As a shot in the dark I decided to buy some Litecoin (LTC) a few weeks ago at $174, since it was the only thing that had not rallied at the same rate as the others. It is currently trading at $220. Even Cardano (ADA) crossed the $1 mark.


🗺 One More Thing…

Like I said, I will probably be making this a monthly newsletter to write about stocks. In addition, I’m thinking to have another monthly writeup about Blockchain as I continue to educate myself about it as well. So perhaps 2 posts a month, 1 about Stocks and 1 about Blockchain.


🔗 Links

  1. WallStreetBets Trader Keith Gill Appears To Have Bought 50,000 More Shares Of GameStop - Yahoo Finance


As always, this is not financial advice. I use this as a way to journal my thoughts and share with anyone else interested enough to want to read this, as well as for educational purposes only.