With the markets taking a slump today, I’m getting a lot of questions from people asking, "Should I sell ?!?!" "Has anything changed about your investment in the past few days " , I ask. “Well, the price has changed" , comes the retort. Instead of facepalming, I tell them the following story (inspired by legendary Ben Graham )

Mr. Bob Mania

Let’s say you trade items in real life. Specifically – you trade in laptops and cans of Pepsi. (Bare with me...) You usually trade these items with a guy named Bob – Mr. Bob Mania. The going rates? Each laptop: $1000 Each Pepsi Can: $1 However, Bob has occasional bouts of manic syndrome. He either gets really excited or really depressed (or sometimes both). One day, you go to Bob to sell a laptop and buy some Coca-Cola cans. Bob, however, is having a manic episode and says to you:

Bob : Yea - I’ll buy the laptop off you for $20. And the Pepsi is going to cost you $500 You : What the hell?? Those weren’t the prices last week. Bob: Well, that’s what they are today – and if you don’t act fast, the laptop may sell for only $1 tomorrow. And the Pepsi can may cost you $1000”

What do you do?



Option #1 - You quickly sell all your laptops and rush to buy all the Pepsi cans possible.

Option #2 - You hold on to your laptop (perhaps even buy more) and quickly rush to sell all your Pepsi cans.



The obvious answer is Option #2 . Why? Because you know the true worth of your laptop. And you know that the Pepsi can is completely overpriced. Yet – so many of us pick the first option when dealing with the crypto market.



Bob – is the market. And we sell our laptops to him for $1. And buy Pepsi-cans from him at $1000 simply because Bob is in one of his moods. ​​​​Don’t let the market’s occasional state of manic episodes dictate the price of your investments. The smart investor will take advantage of Bob’s bout of mania – and not let Bob’s emotions dictate his financial future

