The US government and in particular the SEC has taken a lot of flack last year from the public, but their stance (and that of the UK financial regulatory authorities) is understandable. How many decision makers in these organisations are under 30? Under 40? Not many, for sure.
Now there is nothing wrong with age, but society is changing at an accelerating rate, and those responsible for decisions should understand that stifling innovation never ends well. More and more I listen to people under 30, and less so to those of my age, because I think that over 90% of those my age do not know or care what happens when they have popped their clogs.
Unless western governments want the wrath of some of their more extreme citizens to cause a potential civil war, they can’t put the genie back in the bottle and admit that “the ordinary citizen” has been “sheepled to death” within our modern education system. They still think and advise our younger generation to “get a good education and get a good job”. Web 3.0 and its associated leverage technologies such as 5G for driver-less cars, automated delivery services and other innovations as yet unknown will present us with more and more opportunities to have multiple sources of income. I just hope that our own government will not curtail by law what is actually happening globally. They will have to learn to work with Web 3.0 organisations not against them.
It is clear to me that the future on this industry is going to be governed in ways that align with developed country’s ideas of what good governance looks like, and from there some clever folks will issue insurance policies that protect the individual from investing in any instrument that has not had a governance audit, and can prove that in all instances, the “end use investor” has protection. This is effectively what the global insurance industry (and it’s dependent Re-insurance industry) is built upon, and it is a golden opportunity for that industry to reinvent itself. For now though, any funds I did and in future will commit to activities such as Forex trading, or any new service such as leveraged DEX, or NFT and the like will be done so with my eyes wide open. Nobody is going to pay you 8,000% interest, let alone 80,000% interest without there being risk of catastrophic loss.
I look at these opportunities in the same manner as I have embraced my sh__coin strategy. And as a matter of principle, I am going to change the description in 2022 of this element of our trading plan, and perhaps rename it to the “three zeros” investment strategy. Three zeros because for a potential opportunity to fit into that category of investment (or trading depending on timeframe), it would have to satisfy one of three critera. Can it 10X, can it 100X or can it 1,000X.
Just as an example, if someone is telling me that I can be the beneficial recipient of doubling my money every month, I need to decide (with historical backtest data of possible) how often is such an investment likely to encounter a catastrophic failure (eg a currency tethered to the USD falls below xx% of its nominal 1:1 ratio). If I determine the risk is one month per 10, but the reward is 100% per month, I could afford one catastrophic event in one year, and so “plan to lose money” once in 12 times. That would be the equivalent of a 11X (rounding it out, a “ten bagger”, and how often in trading the primary pairs does that happen?
Using our Forex education and knowledge that it is inevitable that some trades will fail will help us do a formal reward/risk assessment. The only thing that is missing or incomplete is historical data for analysis.
Just writing this has cemented this idea in my mind to be able to go to the next step of formally writing how my plan actions are going to achieve this objective. Magic. Thanks for your interest in this subject. I feel that many of our members are so caught up in learning what everyone else does that they do not give themselves time for original thought from which a strict planning process would give you a far better chance of success than “following the crowd”