To The Moon

Recently, MSTR (MicroStrategy) and MSTU (T-Rex Long MSTU Daily Target ETF) have experienced notable price increases, drawing significant attention from investors. While I don’t currently hold positions in either of these assets and didn’t benefit from their recent performance, I’ve chosen to stick to my investment principles. Here’s why:

1. Avoiding FOMO (Fear of Missing Out)

The surge in MSTR and MSTU might be enticing for many, but FOMO is a dangerous motivator in investing. Chasing an asset simply because it’s rising often leads to hasty decisions. I believe in staying grounded and following a disciplined approach rather than rushing into a trend without due diligence.

2. The Trap of Buying High, Selling Low

One of the most common pitfalls for investors is getting swept up in the hype, buying at high prices, and then panicking during a downturn. I avoid this by sticking to my strategy: wait for opportunities to buy assets at reasonable valuations, and sell only when it aligns with my goals—not because of fear or hype.

3. Understanding MSTR and MSTU’s Recent Surge

• MSTR (MicroStrategy): MicroStrategy’s stock performance is closely tied to Bitcoin, as the company holds substantial reserves in cryptocurrency. Its recent rise is likely linked to Bitcoin's upward momentum. However, such correlation also exposes MSTR to Bitcoin’s volatility, making it a high-risk, high-reward play.

• MSTU (T-Rex Long MSTU Daily Target ETF): MSTU is a leveraged exchange-traded fund designed to amplify daily returns for its underlying index or strategy. While leveraged ETFs can deliver outsized gains during favorable market conditions, they also come with increased risk due to daily compounding effects and potential for significant losses in volatile markets.

Understanding the dynamics behind these moves reinforces my decision to stay patient and wait for opportunities that better align with my risk tolerance and strategy.

4. Market Cycles and Timing

Price surges like those seen in MSTR and MSTU are often followed by periods of correction. Timing the market perfectly is nearly impossible, so I focus on staying prepared for when opportunities arise during pullbacks or periods of consolidation.

5. Lessons from Missed Opportunities

Missing out on the recent rise in MSTR and MSTU is a valuable reminder to remain vigilant and continue researching emerging trends. The market offers countless opportunities over time, and it’s better to miss one rally than to make impulsive decisions that could lead to losses.

6. Long-Term Over Short-Term

Both MSTR and MSTU have shown impressive short-term performance, but my focus remains on sustainable, long-term growth. Rushing into assets during a spike can be tempting, but I aim to build a portfolio that aligns with my long-term financial objectives and minimizes unnecessary risks.

7. Risk Management is Key

• For MSTR: The company’s reliance on Bitcoin introduces significant volatility. If Bitcoin’s price drops sharply, MSTR could follow suit. This risk is amplified for investors who buy in during a rally.

• For MSTU: Leveraged ETFs are not suitable for all investors, particularly those without experience managing high-risk instruments. Daily compounding can lead to unexpected outcomes over time, especially in choppy markets.

Recognizing these risks further solidifies my decision to stay on the sidelines and look for better-timed entry points if I choose to invest.

Conclusion

While I didn’t benefit from MSTR and MSTU’s recent rise, my decision not to FOMO into these assets reflects my commitment to disciplined investing. The market is full of opportunities, and patience often pays off. By focusing on fundamentals, avoiding emotional decisions, and staying aligned with my long-term goals, I’m confident I’ll find the right opportunities when the timing is right.