I read this today from Naval which got me thinking…

Whether you’re excited or nervous when your favorite asset falls in price marks whether you’re investing or merely speculating.

I rarely disagree with Naval but will do so here.

In early stage investing, my gut can get me into a company, but there is not much I can do after if my gut says get out. Certain moments along the way get me excited and nervous…mostly for the founders (big hires, capital raises, corporate development) and the team though (product launches etc.). At Social Leverage we do NOT average down into positions. We will make pro-rata investments as companies expand and raise up rounds.

Liquidity in the public markets changes a lot of my behavior and emotions.

In the public markets I am nervous about every big drop in price for any of the assets I own. I do not think that makes me a speculator. I have held Apple, Google and Nike for years, but have felt nervous buying big dips in their stock each and every time.

Each drop can signal the beginning of the end.

When investing in public markets, investors and traders should/must have a plan. I am sure some people always feels excited and some never get excited, but I think it is pretty normal to get nervous…at least from some of the great investors and speculators I talk with every day.