In trading, it’s often easier to lose money than to turn a profit. Many traders make small gains and quickly cash out, but when they’re stuck in a losing position, they hold on for far too long. This is a bad habit. Warren Buffett refers to this as "picking up pennies in front of a steamroller"—you make tiny gains each time, but one mistake can lead to a significant loss. This approach overlooks systemic risks.
A more effective strategy is to invest in assets that have strong long-term growth potential. These are assets that move through multiple cycles, with each cycle reaching higher highs than the last. A portfolio built around such investments is more resilient to risk and offers significant advantages. You don’t need to worry about timing the market because every entry point becomes a good opportunity over time.
Historically, some of the best assets for long-term investment include U.S. stock indexes, gold, and Bitcoin.