What Makes a Good Investor (Hint: It's Not Just PnL) 😮
Not all profits are equal. Just because someone made money doesn’t mean they’re a good at it. A lot of times, the guy bragging about his gains is just someone who got lucky — and luck runs out fast.
👉 A good investor isn’t judged by how much he made, but by how much risk he took to get there.
1️⃣ Let’s say you have $10k. You bet it all on red in roulette. You win, double your money, and now you have $20k. That’s a 100% return — but was it smart? No. You had a 50% chance of losing everything for a 2x reward. That’s a 1:1 risk/reward — a coin toss with your entire capital.
2️⃣ Now imagine someone else with $10k who deploys just $2.5k into HYPE on April 7, after spotting relative strength and solid fundamentals. He buys spot. No leverage. 45 days later, the coin is up 300%. That $2.5k is now $10k, and his total stack is $20k — same result as the gambler.
But he only risked 25% of his capital, and realistically the downside was nowhere near zero. His risk/reward was closer to 3:1, not 1:1. That’s what good investing looks like — asymmetric bets with limited downside and meaningful upside 🧠
A good investor doesn't chase high returns — he constructs them with discipline, sizing, and edge