Jeremy Northam has been a HODL guy ever since he first heard the catchy phrase on Reddit several years ago. For the uninitiated it comes from the Bitcoin community and means holding your positions and never selling. That alongside the phrase “No Pain No Gain” has set Northam back a decade minimum.
“This week’s sell off has been brutal,” says an unphased Northam. “I have so many tech stocks that are down 50% or more and while I considered setting reasonable stop loss orders and taking my lumps I remembered the saying ‘No Pain No Gain’ and decided not to take those losses like a loser would. I mean it’s literally called a loss and I’m no loser.”
We consulted with financial analyst Patricia Sloane who accurately points out that a 50% loss requires a 100% gain just to return to even and capital preservation is more important than anything when building wealth.
“You really want to avoid gambling in high-flying names where you have a vague understanding of the business,” says Sloane. “You definitely want to avoid panic selling but if you’re trading instead of buy and hold investing maybe consider risk management so you don’t dig yourself a massive hole.”
When told this advice Northam replied, “I’m a HODLer” before escorting us out of his home.