Xela Finance

After 8 years of investing. At the age of 21, I finally have my first 10 bagger investment.

It’s not the kind of stock that I wanted to have a 10 bagger in, but a 10 bagger is a 10 bagger. I won’t complain.

In the last post I mentioned the strategy of buying Bitcoin mining companies, namely, Argo Blockchain. In that post I mentioned I was 200%+ in the green. Well, a couple days later and I’m on the brink of breaking 1,000%. I think what I’ll do is, sell a reasonable amount of the position after it crosses the 1,000% mark and then sell the remaining shares once the bitcoin run starts to show signs of slowing down.

Even though this is a 10 bagger, it’s not life changing money to me because my initial positions size wasn’t massive, just a few hundred shares. But I do know someone that made more than the UK average salary within 2 weeks by investing in this company. Now I’m not saying this company is going to make you a lot of money, because it probably won’t now, its had its massive bull run, it may increase a bit more but I think that once the big money is happy with a couple hundred percent, they’ll just sell their positions which will lead to mass sell volume which will tank the price.

To make this kind of money in the current circumstances isn’t especially difficult but it is still very lucky. This investment was only profitable for me because of all the Bitcoin pumpers. Whether Bitcoin is successful or not, I don’t really care, as long as there are opportunities to make money either way. There are a couple things I have learnt in this short investment. Firstly, have a minimum standard investment amount in your investments, for me this will be a certain amount in £ terms. The reason for this is to make your investments worthwhile. Understandably, younger investors may struggle with this because it’s not like we have cash sitting around ready to invest, however, moving forward I will try to make an effort to invest a minimal amount into each and every new investment, this way if I get another 10 bagger, 5 bagger or even 2 bagger, I can make that investment become more life changing. Although it has to be met with greater risk management otherwise the flip side will be exaggerated e.g. losing greater amounts of money.

The second lesson is to think slightly out of the box when it comes to trends. Bitcoin is going through it’s second trend phase in 4 years. I’ll be honest I was a little salty that I didn’t capitalise on the first bull run but then again it was a crypto bubble at that time and I didn’t full understand it. Second time round I was ready, but I didn’t want to invest in bitcoin because truth be told I thought the lows of 2019 were still too high. This is where the thinking outside the box revolving around trends comes in. Bitcoin is the parabolic driver, it’s value has soared. This will normally mean that other instruments will increase as well based off of the main asset. Alt-coins is the first thing that comes to mind. They rely a lot on the strength of bitcoin and a few of them probably haven’t exploded yet. My problem with this is that a lot of alt coins are a bit rubbish and also, I would have to go on a website like coinable or something like that to buy it. This idea could work for more crypto focused investors but not for me.

Therefore I had to think again, I though about things im used to and comfortable with, equities. I looked for companies that dealt with bitcoin in anyway and the most common type of company that dealt with bitcoin was listed crypto currency mining. Enter Argo Blockchain. These guys are the biggest crypto miners in the UK with their main focus on Bitcoin. It’s an indirect way of investing in bitcoin and its an equity so im more comfortable with it. I think if investors can apply this wider thinking to future trends of the same volatile nature of bitcoin, it is a smart way of investing.

Third lesson, it’s a bull market. Despite numerous investors having all time best years, and beating their own expectations, its easy to think that you are the top dog when it comes to investing. Therefore I think it is imperative to remember that in this current market, it is a lot easier to make money than it was before. Therefore we should be aware of this and focus on our risk management as well as not being cocky in the market, a Midas touch doesn’t exist in the market. Be grateful for our returns and stay humble.