Rule Du Jour: Rule #72 - Life Changing Money Rule (Patreon)

Rule #72 - Life Changing Money Rule

You always hear me talking about balancing risk and reward and my 80/20 rule - 80% HODL BAG is Safe Bag and 20% Trading Bag....well

"When you make life-changing money, lock it in. Don’t gamble it away chasing more." IA 2025

Key Principles:

• Secure First, Risk Later: Always take a portion of your gains—especially the life-changing ones—and move them into safe, untouchable assets (e.g., i always have a concept called my Money Market, 2017-2021 that was Bitcoin, 2021-2024 that was MSTR, now my Money Market is Tesla - it is safe ie limited downside in relative terms and also has asymmetric upside).

• Alpha vs. Risk: Yes, there may be 10 more higher performing trades on the table but are they as safe?

• Sell Early: An old addage is sell early.... hence layers and profit taking before peaks and moving the gains into safety.

• Emotional Discipline: Greed whispers: “Double it.” Wisdom answers: “Keep what you earned.”

• Think Legacy: Imagine what that money could do—for you, your family, or society. $110M isn’t just a number—it’s generations of impact. As in the case of James Wynn, losing it all in a month isn’t just tragic—it’s preventable. And he also sacrified his legacy and doing good for the planet

TLDR

Harvest + Hedge
Make big gains → Harvest a portion → Hedge the rest ie lock in your future

"Live like you’ll get lucky again, but protect yourself like you won’t." IA 2024