The paradox of a 1000x micro cap gem.

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The paradox of a 1000x micro cap gem.

I've talked about it a little bit with people here and I think in posts before but it still doesn't cease to amaze me.

The paradox being, if you are like myself and have enough assets (fiat/real estate/crypto/stocks/bonds/goats/chickens/etc) to take some occasional high risk and speculate on a micro cap but not by any means a high net worth individual, you would be foolish not to take some profits off the table on the way, say for example your $1000 becomes $7000 after a few weeks or months, selling $1000 is extremely reasonable and often encouraged and for good reason.

Then the remaining $6000 becomes $20,000 after another few weeks or months, and it becomes very reasonable to sell another $5000 and arguably you'd be a fool not to take advantage of the opportunity, because you can always use some of that $5000 to buy more on a dip right?

So your $1000 investment has now resulted in $6000 of realised gains and you can make excellent use of that money in your personal life, and as an added bonus you still have a very strong position in a project you remain highly bullish on.

But on the flip side of that, you started with 100,000 tokens, the first time you take profit you are losing around 14,000 tokens (feel free to correct the math if it's wrong but the numbers aren't important the the wider point of the post), and the second time you take profit you are losing 21,500 tokens, and by the time the project does reach the top 200/100 rank on CMC and it is well established and defined and successful.

By this point you have taken $180,000 of profit off of the table which is absolutely insane considering the comparatively tiny $1000 investment and this project has changed your life for the better. But now you have only 15,000 tokens so the opportunity cost is tens of millions of $$$ by doing the logical, sensible and safe thing of taking profits along the way.

So the point is, you can't have it both ways, you can diamond hand in the hopes of floating to the top but much more likely long drowning and sinking to the bottom, or you can play it safe so that you aren't left going down the ship and stuck with your hands in your pants but the cost of that lifeboat and lifejacket is that you might be left behind in the wake of the ship.

Pick your poison as they say.

Edit: incase it isn't clear, this is a hypothetical with fake prices for the sake of explaining my point and not a personal story.

submitted by /u/j0-hn-dea-ux
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