⚡ Why do you need a plan? (free framework inside)

The bull run is right around the corner…

…but most people who make it big in it will lose it all.

Let me tell you why.

In January 2022, an old friend called me in with some good news: He hit the jackpot.

He had invested his entire portfolio of a few thousand dollars into a microcap crypto, which had overnight pumped to be worth $700K. It was life-changing money, more than he had ever seen.

He started to daydream.  

$700K was great, but imagine what he could do with $1 Million. He told me about his plans to buy land, to buy nightclubs (he was from a country where this was doable with that amount of money). In fact, he had already quit his job in preparation for this plan.

But here’s where the dream took a dark turn.

I asked him: “How much profit have you taken yet?”

“Not a penny” he said.

Fast forward a few months, the token plummeted over 90%, wiping out his life-changing fortune. He tried to go back to his old job, but his boss had already replaced him. He was totally desperate and depressed.

I can’t even imagine the pain. 

Here’s the shocking part: he had done the research. He didn’t just luck into this token. 

• He was in the trenches for weeks before making his move 

• He had tracked down the team’s identities and background

• He knew every facet of the tech and roadmap

• He analyzed the project’s seed round, identifying smart money entering the project early

• He considered potential catalysts that could skyrocket the token price

Yet, despite his efforts, he failed.

Why? 

Because he lacked a plan for the upside. He lacked structure.

Think of structure as your safety net – your set of systems to keep emotions at bay and decisions clear.

Emotions are the real enemy. Even people with access to inside information and almost limitless resources fall to emotions. Take as an example Richard “Dick” Fuld Jr, former CEO of Lehman Brothers. 

The Lehman Brothers were one of the biggest banks in the world. However, under his leadership, the bank made risky investments during the subprime mortgage crisis (2008).

As the subprime mortgage crisis unfolded, Fuld had multiple opportunities to save Lehman Brothers–investors like Warren Buffet were interested in a capital injection or a merger. But his emotional attachment to what he considered the fair value for Lehman Brothers prevented him from taking the deal.

On September 15, 2008, Lehman Brothers filed the largest bankruptcy in US history.

Fuld’s inability to control the firm’s exposure and his EMOTIONS hugely contributed to Lehman Brothers' and his wealth downfall.

Even the smartest ones, with far more resources than the average investor, still fall to emotions.

That’s why you need plans & structure.

The bull market is right around the corner. You need to learn how to take profits before you get that big win. If you don’t, emotions will take control, and you’ll not know what to do.

So, how to structure your plan?

Bitcoin is soaring over $33k now. How do you play it?

On-chain indicators are flashing good signs for the first time in years. The bull market is coming. Having a plan is non-negotiable.

Here’s a sample framework for taking profit:

• Sell half every time it 2Xs

• If you’re more aggressive, sell half every time it 3Xs

• For a more conservative profit-taking strategy, sell half every time it goes up by 50%.

The point is you set a plan before the coin starts moving and then stick to it.

It might seem simplistic, but these “if / then” guidelines help you eliminate emotions from your decisions. Of course, this isn’t a one-size-fits-all. It adapts based on your risk tolerance, market cycle, and the token’s role in your portfolio.

Systems make your life easier and keep you from emotion-based decisions.

But there’s more to success in crypto than knowing when to take profits. You need a comprehensive set of systems:

1. Systems to discovering new gems

2. Systems for evaluating tokens

3. Systems for building your portfolio in any market state

4. Systems to evaluate if a team is going to scam you

Tomorrow, I’ll share more about HOW you can build those systems and plans for crypto investing. 

Now is the best time possible to have those systems in place – the bull market is right around the corner, and markets are pumping hard. It’s your moment to level up your DeFi knowledge.

Until next time,

Patrick Scott

Dynamo DeFi