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The Marshmallow Test for Gold Trading
The No. 1 Reason Gold Investors Lose Money
Most people believe becoming a great investor is all about picking the right asset.
They’re wrong.
The real battle isn’t finding the right idea – it’s controlling your emotions. Because even the greatest asset in the world can lose you money if you buy or sell at the wrong time.
This is especially true if you’re rushing into “supposedly” safe-haven assets like gold and silver, which have been on a tear recently. I’ll have more on those precious metals below.
Before I get there, let me show you what I mean…
Peter Lynch is widely considered one of the greatest money managers to ever live. From 1977 until his retirement in 1990, his Fidelity Magellan Fund averaged a staggering 29% in annual gains.
To put that in perspective, a $10,000 stake in his fund would have turned into $274,000 over those 13 years. That more than doubled the return of the S&P 500.
It was the best-performing mutual fund in the world. And it wasn’t an exclusive club reserved for the ultra-wealthy, either. Anyone could invest.
All you had to do was buy the fund… Go about your life… And you would’ve made 27x your money.
Here’s the shocking part: Despite Lynch’s historic track record, the average Magellan fund investor actually lost money.
I want you to really let this sink in. Even with a fund compounding at 29% per year, most investors still lost money because they couldn’t control their emotions.
Even the best fund in the world won’t go up in a straight line. You’ll have months when your portfolio is up 20% and you feel like a genius… And months when your stomach drops as you watch your wealth plunge 10% or more.
For Magellan’s investors, every one of those moves triggered an emotional reaction. Investors dumped shares at peak of FUD, only to buy back in during extreme FOMO.
They had the greatest money-maker in history at their fingertips, and they threw it away because they couldn’t tune out the daily price action.
Friends, I’ve seen this happen in stocks… I’ve seen it happen in crypto. And now I’m watching it play out again in the hottest commodity on the planet today: gold.
If you’re jumping into the gold trade, I want you to pay close attention… Because most investors fail over the long term, and it comes down to emotions.
This is something we’re all prone to. It’s human nature. But I’ve found a way to overcome it.