Considering the heavy 20-40 age group's presence in this forum I thought it would be pretty helpful to discuss on investments you guys are involved in or would like to know about or to just share helpful tips for some of our younger members here.
I strongly feel this is a good time to start investing for beginners as the markets are crashing big time all over and major corrections are being made around the globe
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I may be coming into an inheritence in the near future so i had been considering investing part of it. But i don't really know where to start, so if any of ya'll old timers have any suggestions or tips about what to be wary off then i'd appreciate it
My gf has come into some money recently and I've been talking about investments with people on Discord quite a bit.
I'm a complete noob and I've never bought stocks before, but I know enough to say that the stock market is basically gambling.
Look into Roth IRAs. That's basically putting away cash tax free, where the interest won't be taxed, but you won't be able to really pull it out till retirement.
DO NOT invest anything right now. Things are still crashing and may continue to fall for several months. The drop will probably be less severe in the weeks to come and it may stabilize sooner than later, but going in deep on anything right now is a bad, bad idea. Once its stabilized yes, it will be a good time to go in on something.
If you're young you can invest in something volatile and risky, that has high risk but potential high reward, it may be worthwhile to try, you have time to adjust for it later. If you're a bit older, go for slower safer things that don't get big gains but do get steady growth. Even a tiny amount of consistency adds up over decades.
Go with safe things that you know will always have a need but are boring, like medical supplies. Diversify, don't put everything into one stock.
Invest as much as you possibly can, 2,000-4,000$ a year if you can afford it. The more put aside now gaining interest, the more it'll be worth later. Putting aside 4000$ when you're 25 is about as valuable as putting aside 10,000$ when you're 35.
If you want to invest in materials, go with silver, DO NOT invest in gold. Silver is stable, gold got ridiculously inflated along the way and dives regularly as the market tries to recalibrate it. Do not invest in oil. There's still big money there but that is a dying industry prone to the whims of dictators.
If you want to invest in a company you believe in like Sony or Disney or Amazon or Pokemon, those are relatively safe bets long term but they ARE entertainment and can fluctuate wildly based on major purchases or who is in charge or multiple box office failures/successes or announcements of a new upcoming thing.
Do not invest in comic books or comic book companies. DO not invest in Newspapers. Do not invest in Funko Pops. DO not invest in Netflix, as successful as they are they don't really make actual profit and are contantly taking on debt.
Disney is not nearly as safe as it appears.
With allegations of long-term book-cooking at the parks currently being investigated, massive losses from the mishandling of the Star Wars franchise, a major reduction in liquid assets following the Fox buyout, the disappointing Disney Plus rollout (subscriber numbers are currently being inflated by a Verizon deal that gives customers a free year of D+), a sudden change of CEO that's very unpopular with investors, and COVID-19 causing huge delays and market damage to almost every sector of the company, there is a non-zero chance that Disney will go bankrupt sometime in the next few years.
I'm a complete noob and I've never bought stocks before, but I know enough to say that the stock market is basically gambling.
Not really. If you believe companies are good enough to run for a long time and in a profitable and sustainable way, then it is worth investing in them. Day trading is gambling surely but long term investing isn't. If it was, people like Warren Buffet wouldn't be raking billions. The difficult part is trying to see how good a company really is.
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For beginners, mutual funds are a good place to start off with so that you can see how well your funds grow over time. At least for me, I started off with those to understand how things really work and besides, the majority of the hard work of trying to find out which company is good etc is done by the fund manager pretty much so not a bad way to start off. Plus it is probably the best way to beat inflation.
I think the best way for anyone that doesn't want to get too involved and get a good return is to invest in an index fund, like S&P 500, with low fees.
Of course, nobody knows whether it will go up or down, only invest and wait enough time for it to earn good returns.
If you want to beat the S&P 500 index, which few fund managers do, then yes, it is better to invest in individual companies, but you need to learn many things before you may try to beat your competition, when you do that without knowing enough, you're really gambling.
Also, because everything is down it doesn't mean it is a bad moment to invest. Rather, it is the best moment. (When we're talking about indexes it is virtually impossible to know when to buy, so, just buy, although you could use something like the Buffet indicator). When investing in individual companies, you can know when it is the time to invest, but anyway, you can't never know when it will stop falling, nobody knows.
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Also, because everything is down it doesn't mean it is a bad moment to invest. Rather, it is the best moment. (When we're talking about indexes it is virtually impossible to know when to buy, so, just buy, although you could use something like the Buffet indicator). When investing in individual companies, you can know when it is the time to invest, but anyway, you can't never know when it will stop falling, nobody knows.
Yes, while its down IS a good time to invest overall while things are artificially low, but right this minute its doing nosedive after nosedive. Wait for that to stabilize for at least a few days in a row.
Its okay in the current market to put in 1000 dollars and have it be 950 tomorrow, because it'll go back up in the near-ish future. But you don't want to put in 1000 dollars today and have it be 500 dollars tomorrow.
I was thinking about getting some money on solid state batteries, but like Robby said, right now it´s more or less gambling, especially when you don´t want high risk of losing a lot, while winning is comparatively the same small amount.
Yes, while its down IS a good time to invest overall while things are artificially low, but right this minute its doing nosedive after nosedive. Wait for that to stabilize for at least a few days in a row.
Its okay in the current market to put in 1000 dollars and have it be 950 tomorrow, because it'll go back up in the near-ish future. But you don't want to put in 1000 dollars today and have it be 500 dollars tomorrow.
I don't want to sound rude here, but nobody knows. If you have that information that it will lose 50 % tomorrow, and doing that consistently, you would certainly be the richest man in the world.
Anyway, nobody knows. So it should be done with prudence, it could well lose more than 50 % tomorrow, or win 10 % or double. Who knows. It is impossible to time the market, and that is a game in which nobody should participate.
It doesn't matter a lot a little decline if you have a long-term investment horizon, the only indicator to know a little bit about this is the "Buffett indicator" or the CAPE ratio, but it is impossible to know what the market is going to do. That's why Bufett prefers to invest in individual companies, in which you can know whether it will be successful or not, and you can know whether the valuation is attractive or not.
How do you know if the valuation of an entire index is high or not? Perhaps Buffett indicator, but that could have worked better twenty years ago, not the interest rates are virtually zero, and that implies that valuation go to infinity.
The other way to know is if estimating the overall growth of the economy over long time periods. Let's say… Perhaps USA is going to grow only 2 % every year for the next 20 years, because it is way bigger than it was before and there is less room to grow and so on... And then you can assume what inflation will be... let's say 3 % over the next 20 years. So, S&P 500 return will be around 5 %, being conservative. If you expect it will grow more than that, it will be because of what people will pay more/less or because interest rates will be lower, which right now are at zero. So, you might want to take a look at the overall P/E of the S&P 500... And compare it to the interest rates right now, or to the historical, which is around 16. Right now, P/E is 18. Sometimes it is more, sometimes it is less, and it depends a lot in interest rates and in the overall emotional state of the market. And then add that additional return to the 5 %. But it is difficult to expect it to be way bigger than 20 consistently. It could be way lower too, but it is not that far away from the historical average.
Investing in an index is not riskless if it is done in a short-term basis, or even a 10-year basis, but it will be a lot better after 20 or 30 or 50 years. That is important. Also, I would prefer to invest in individual companies because then you have a better chance to earn more than 5 % or 7 %, when you invest in S&P 500 you have plenty of diversification, which could hurt your returns if you could instead pick the top performers rather than 500 companies. (You might also make a mistake and pick the worst performers).
I don't want to sound rude here, but nobody knows. If you have that information that it will lose 50 % tomorrow, and doing that consistently, you would certainly be the richest man in the world.
Its been crashing historically every single day for the last two weeks including a great depression level drop today. ANd the corona thing is going to get worse before it gets better. It doesn't take a crystal ball to tell that numbers are going to continue dropping for a bit.
Wait until it stabilizes for at least 1 day rather than consistent before jumping in on anything. That really simple observation isn't rocket science.
Its been crashing historically every single day for the last two weeks including a great depression level drop today. ANd the corona thing is going to get worse before it gets better. It doesn't take a crystal ball to tell that numbers are going to continue dropping for a bit.
Wait until it stabilizes for at least 1 day rather than consistent before jumping in on anything. That really simple observation isn't rocket science.
If you're buying a stock in a company, and it has already and attractive price, it is not a good idea to wait any longer. If you're talking about the overall market, you're right, that's how it seems, but it is always deceptive. It could stabilize 1 day, and continue to fall for 3 months or more, that's how this thing is.
If you're buying a stock in a company, and it has already and attractive price, it is not a good idea to wait any longer. If you're talking about the overall market, you're right, that's how it seems, but it is always deceptive. It could stabilize 1 day, and continue to fall for 3 months or more, that's how this thing is.
Why are you positioning as the sober investment guy when you're saying "Hey maybe it won't keep being terrible, throw risky money at it".
As Robby mentioned, it is definitely worth waiting for few more weeks to see how things are. If you are new, this is probably the best time to pick the right stocks and ready yourself to get into the markets once it becomes a bit stable.
Generally, a good indicator is the VIX index which shows how volatile the markets are. Somewhere around 20 or less is usually a good indicator so its worth to wait till it drops towards the 20 mark. It is around 75 right now so a strict no no for investing. Just to give an understanding of how unstable it is, the 2008 crash sent the VIX index to a max of ~60 so this is way more unstable.
S&P 500 is probably the safest one amongst equities to invest in the markets once the volatility has reduced. I am doing a bit of a research on what to invest too in these markets once it clears up. Will post them here if it helps.
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If you're buying a stock in a company, and it has already and attractive price, it is not a good idea to wait any longer. If you're talking about the overall market, you're right, that's how it seems, but it is always deceptive. It could stabilize 1 day, and continue to fall for 3 months or more, that's how this thing is.
It sorta depends on what as an investor you are looking for. I generally pace it for at least a year so even if I see losses in the immediate month or so, I wouldn't mind but considering the volatility at place now, either waiting for things to slowly stabilise or keep buying bits and pieces as it keeps going down so that you normalise your losses would be a good option. It depends on how impatient you are really [emoji14] I would sit through for some more days though. I am eyeing Tesla for it to go down although the current prices are reasonably attractive
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@Monkey:
Why are you positioning as the sober investment guy when you're saying "Hey maybe it won't keep being terrible, throw risky money at it".
Does it sound like that to you? I never made any recommendations over anything, if you read carefully.
If you read, I said that nobody can predict it, I'm not saying it won't be worst, just stating that nobody can know that, but what you can know with enough hard work and study is whether a company will be earning significantly more in 5 years or more. But I'm not saying which! If you have done that and the price is significantly attractive, you can buy it. I'm not saying there is a company like that right now or which one is. Of course, I have my own ideas and so on, but I haven't shared them here.
Does it sound like that to you? I never made any recommendations over anything, if you read carefully.
If you read, I said that nobody can predict it, I'm not saying it won't be worst, just stating that nobody can know that, but what you can know with enough hard work and study is whether a company will be earning significantly more in 5 years or more. But I'm not saying which! If you have done that and the price is significantly attractive, you can buy it. I'm not saying there is a company like that right now or which one is. Of course, I have my own ideas and so on, but I haven't shared them here.
You were responding to someone suggesting not to put money in at the moment.
Also
I'm not saying it won't be worst, just stating that nobody can know that, but what you can know with enough hard work and study is whether a company will be earning significantly more in 5 years or more.
lol
The market shitting itself this past month has very little to nothing to do with anything anyone could have studied or "worked hard" about.
As someone who has been in the market for ten years and read a lot on it before investing here's a few simple rules. Note that this only applies to US residents (you can modify this for your country, probably) who are >=25 years from retirement. YMMV.
This might sound like a lot, but it's pretty simple once you spend some time with it.
@Monkey:
You were responding to someone suggesting not to put money in at the moment.
I only mentioned that nobody knows what the market is going to do.
Also
@Monkey:
The market shitting itself this past month has very little to nothing to do with anything anyone could have studied or "worked hard" about.
I was talking about analyzing specific companies. Not about the market as a whole, which nobody knows what it is going to do.
I've been wanting to invest so badly for years now, but my terminal procrastination prevented me from doing it (I've also been expecting a crash for a long time now). This thread is really motivating me to though. God give me the strength to not procrastinate. Thanks for the tips Cooldud. For an aspiring investor, how does the situation differ between US and Europe, practically? Keep the advice coming guys.
For an aspiring investor, how does the situation differ between US and Europe, practically? Keep the advice coming guys.
I can speak mainly for the UK vs US ones since I trade in both. The major difference is the sheer amount of companies that are traded in the US markets as compared to the UK ones. Also, due to the brexit fears over the years many investors have slowly transitioned over to the US market to be on the safer side. I prefer technology stocks and US has way more tech ones traded than the UK.
Apart from these I don't see any major differences as such.
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- Just put your money in the market whenever you can. Don't worry about whether the market is falling or rising right now. The market picture over a period of weeks or even months does not really matter in the grand scheme of things. There's no sense in timing the market. Professional investors try and fail all the time, so don't even try..
I would probably add to this that this applies to only blue chips and not the others. To really weather the ups and downs without timing the market requires the money to work for you for 3 yrs minimum and only a blue chip can give some guarantee on achieving that
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“When you’re accustomed to privilege, equality feels like oppression."
@xan:
I would probably add to this that this applies to only blue chips and not the others. To really weather the ups and downs without timing the market requires the money to work for you for 3 yrs minimum and only a blue chip can give some guarantee on achieving that
To clarify, I was talking about an investment time-frame of at least a couple of decades, if not more. Mostly talking about retirement funds etc. I'm not in the stock market to earn a quick buck, I'm too much of a pussy for that. Bonds are where I put my <10 year timeframe money, CDs for ~1 years and HYSA for anything less than that.
Second clarification, I was talking about index funds. An overwhelming majority of them invest in blue-chips (although there are a few that track small-cap companies too, I have some money parked in these just to see how they perform long term, a fun little game so to say) e.g. the S&P 500 (which is the most popular index fund).
Stock market is a great option for investing. I am investigating this field myself. But must admit that there are so many moves to be made if you want to get shares or bonds :( you need to be really patient for that! At the moment I am also looking into buying cryptocurrencies and real estate. I believe that in the long run these fields provide some sort of financial balance. Real estate market is stable giving little profit though. While crypto market is quite risky but theoretically can bring a lot of profit. My dream is to live in Spain, in the Alicante area to be exact!
hope one I can afford it through sensible investment! fingers crossed
I think real estate's going to be a bit rocky over the next few years but it might improve after 2022.
Stock market is a great option for investing. I am investigating this field myself. But must admit that there are so many moves to be made if you want to get shares or bonds :( you need to be really patient for that! At the moment I am also looking into buying cryptocurrencies and real estate. I believe that in the long run these fields provide some sort of financial balance. Real estate market is stable giving little profit though. While crypto market is quite risky but theoretically can bring a lot of profit. My dream is to live in Spain, in the Alicante area to be exact!
I suggest you focus on some sector you know pretty well, and then invest in it. You can find good opportunities in stocks, bonds, real estate (although not always at the same time nor all the time), but it is really important to understand the companies and the sector in which you invest, that is more important than diversifying across different asset classes. That's called circle of competence, and it is very important.
I actually been wondering how exactly U.S. authors make a decent living out of indie comic books
They don't.
Unless you're working at the big 3 you're making less than minimum wage. Indie comics don't sell enough to cover their print runs, let alone make profit.
Exceptions exist, mostly for creators that have been doing it a LONG time and have a well established base and years of backlog. And those usually rely on being webcomics rather than traditional print, and only put out printed volumes (not issues) when they have fundraisers to cover it.
But actual floppy comic producers? They are almost guaranteed to be doing some other work on the side, unless they have spouses covering all the bills.
Didn't that TMNT guy run a fairly large indie publishing house?
They don't.
Oof, that's harsh.
Unless you're working at the big 3 you're making less than minimum wage. Indie comics don't sell enough to cover their print runs, let alone make profit.
Exceptions exist, mostly for creators that have been doing it a LONG time and have a well established base and years of backlog. And those usually rely on being webcomics rather than traditional print, and only put out printed volumes (not issues) when they have fundraisers to cover it.
But actual floppy comic producers? They are almost guaranteed to be doing some other work on the side, unless they have spouses covering all the bills.
I was under the impression Image Comics had been performing decently, specially since they announced a handful of Netflix adaptations lately, but now that I get to know Netflix is also a loving-debt company, well, totally changed my perspective on the matter.
Stock market is a great option for investing. I am investigating this field myself. But must admit that there are so many moves to be made if you want to get shares or bonds :( you need to be really patient for that! At the moment I am also looking into buying cryptocurrencies and real estate. I believe that in the long run these fields provide some sort of financial balance. Real estate market is stable giving little profit though. While crypto market is quite risky but theoretically can bring a lot of profit. My dream is to live in Spain, in the Alicante area to be exact!
I would not recommend cryptos to anyone. There is literally no asset behind it which determines whether it goes up or not. Its just fancy gambling.
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Oof, that's harsh.
I was under the impression Image Comics had been performing decently, specially since they announced a handful of Netflix adaptations lately, but now that I get to know Netflix is also a loving-debt company, well, totally changed my perspective on the matter.
I'm guessing that when Robbie mentions the big 3 he means Marvel, DC, and Image.
Image was never really indie, it was founded by the most succesull authors of the 90's at the peak of their popularity, but it didn't really compete with Marvel or DC until they embraced comics outside the superhero formulas.
Not saying every Image Comics author gets the same check as Robert Kirkman, author of the Walking Dead, but they can invest and pay their authors decently.
I thought Dark Horse was the third biggest.
What currency would you guys choose to invest in if you knew the US dollar was going to collapse ahead of time?
What currency would you guys choose to invest in if you knew the US dollar was going to collapse ahead of time?
Gold. Strictly a currency? Euro or the Chinese Yuan maybe.
It depends on what might the reason behind the currency's collapse. USD is one of the most widely circulated money kept around the world in reserves. If the dollar falls, many currencies will indirectly get affected.
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Pot stocks are jumping up in the wake of Biden's victory and the drug policy wins in several states.
Gamestop's going on a fun ride today.
Are there resources to get into ethical investments? For me ethical investments include trolling the hell out of Wall Street in their own game, but mostly I mean investment that does not kill or exploit humans and animals, directly or indirectly. I know it's probably a paradoxical question, with how capitalism works in its core. But I know "ethical" banking exists, maybe the same resources exist for stock exchange.
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What currency would you guys choose to invest in if you knew the US dollar was going to collapse ahead of time?
Anticipation intensifies
Are there resources to get into ethical investments? For me ethical investments include trolling the hell out of Wall Street in their own game, but mostly I mean investment that does not kill or exploit humans and animals, directly or indirectly. I know it's probably a paradoxical question, with how capitalism works in its core. But I know "ethical" banking exists, maybe the same resources exist for stock exchange.
index funds
…....
Pot stocks are jumping up in the wake of Biden's victory and the drug policy wins in several states.
Damn shame about South Dakota.
Hey guys. A friend recently got me to finally stop fuggen procrastinating and got me to make a little start at investing. I'd like some thoughts. My situation:
I'm a student so
-not high income
-maxing out my student loan (no interest… for now)
-I live frugally
-I'm a risk averse and careful investor. I only invest what I can afford to lose.
-I'd still like to make a quick huge return on investment because it's not efficient to only safely invest in ETFs with my meager disposable income.
-I'm also basically a noob at investing so I need to do a truckload of reading before I look at more risky stuff.
For this reason, I'm looking at taking a small part of my income and investing it in penny stocks or some other high return investment so I can turn that into real capital to grow with.
So the question is: what is the required reading for my situation? What advice? What pitfalls when investing in penny stocks or similar? etc. etc.
Looking forward to being a regular here.
Edit:
I know penny stocks are high-risk and have liquidity issues.
Current portfolio:
-some € in bitcoin with more to come, expecting a usual march bear run for bitcoin, after which I will buy the dip.
-even less € in vanguard ETF. It gives a tiny €20 unrealized profit so far, but why even bother with my meager income?
-Bionano, Nano Dimension and Xiaomi all were recommended to me by said friend. Queue tech being completely obliterated, giving us massive unrealized losses lol. I'm confident in a rebound though, I'm a disciplined (bag)HODLer. Also, google said Xiaomi uses Uighur labor, which I searched in hindsight. So I'm not investing further in it.
-Most importantly, I'm considering buying ARK ETF with a big part of my savings, thousands of euros. This is because One, they had massive returns last year, Cathie Wood who runs it is seen as the new Warren Buffett. However, there's no way it can see the same returns as last year and everyone is a genius in a bull market. Two, Innovation science happens to be what I study at university and ARK is all about disruptive innovation so it just seems fitting. Third, ARK has long-term vision. They're in it for 5 years at least. This is also my outlook. I only want to be day-trading in penny stocks or similar with a smaller part of my savings only to build up more safe investing funds.
Hey guys. A friend recently got me to finally stop fuggen procrastinating and got me to make a little start at investing. I'd like some thoughts. My situation:
I'm a student so
-not high income
-maxing out my student loan (no interest… for now)
-I live frugally
-I'm a risk averse and careful investor. I only invest what I can afford to lose.
-I'd still like to make a quick huge return on investment because it's not efficient to only safely invest in ETFs with my meager disposable income.
-I'm also basically a noob at investing so I need to do a truckload of reading before I look at more risky stuff.
For this reason, I'm looking at taking a small part of my income and investing it in penny stocks or some other high return investment so I can turn that into real capital to grow with.So the question is: what is the required reading for my situation? What advice? What pitfalls when investing in penny stocks or similar? etc. etc.
Looking forward to being a regular here.
Edit:
I know penny stocks are high-risk and have liquidity issues.Current portfolio:
-some € in bitcoin with more to come, expecting a usual march bear run for bitcoin, after which I will buy the dip.
-even less € in vanguard ETF. It gives a tiny €20 unrealized profit so far, but why even bother with my meager income?
-Bionano, Nano Dimension and Xiaomi all were recommended to me by said friend. Queue tech being completely obliterated, giving us massive unrealized losses lol. I'm confident in a rebound though, I'm a disciplined (bag)HODLer. Also, google said Xiaomi uses Uighur labor, which I searched in hindsight. So I'm not investing further in it.
-Most importantly, I'm considering buying ARK ETF with a big part of my savings, thousands of euros. This is because One, they had massive returns last year, Cathie Wood who runs it is seen as the new Warren Buffett. However, there's no way it can see the same returns as last year and everyone is a genius in a bull market. Two, Innovation science happens to be what I study at university and ARK is all about disruptive innovation so it just seems fitting. Third, ARK has long-term vision. They're in it for 5 years at least. This is also my outlook. I only want to be day-trading in penny stocks or similar with a smaller part of my savings only to build up more safe investing funds.
My crypto strategy has been extremely short-term, often holding for only a day or less before selling.
I keep hearing that Bitcoin is "safer" than the other cryptos and is "expected to go up to x" but it's incredibly risky and if you get a sudden ten or twenty percent gain it's probably better to take the money and run.
Invest in slow safe stuff. Put it money you can afford to not touch and just let it sit till you retire.
Yeah its not exciting or thrilling but if you invest 5000$ now and its 80,000$ dollars later and you didn't have to do anything but let it sit, its a win.
I personally put my cash into medical stuff and minerals like silver that's done well for me, though if I could go back in time I'd obviously put some money into Sony and Nintendo and Disney and Amazon and I guess Gamestop two months ago. But those things, while they will continue increasing in value (maybe not gamestop, that meme is going to crash and burn eventually when the actual stores don't make any money) but those big fancy name brands you know full well have hefty, hefty investment prices… better to get a bunch of litle cheap shares of something than a few big shares of something.
So like, if you were going to invest in silver and have 300$ to put in. One stock is currently worth 300$ per share, while another is 5$ per share. The 300$ one might be more proven long term, but you can can got 60 shares of the other thing for the same price. If the 300$ stock raises by 1 dollar... you've made a dollar. but if the 5$ stock raises by a dollar... you've made 60 dollars!
What you're passionate about is good, and its cool to quickly turn 100$ into 150 on something thats rising fast to make a quick little profit... (I did back when the PS3 was announced and the Xbox presentation sucked) but whats slow and safe is better overall.
I was kinda of unclear in the last post. Yeah I'm definitely going mostly slow and safe (ETFs), but with putting like 20% in riskier stuff, for a fun hobby if not profit. Just wonder if anyone here has experience with or required reading on riskier stuff like penny stocks. My reasoning is money right now still close to my peak in life is worth more than 10 times that when I'm 60 and can't enjoy life as much, if I don't get unlucky and die before then.
So like, if you were going to invest in silver and have 300$ to put in. One stock is currently worth 300$ per share, while another is 5$ per share. The 300$ one might be more proven long term, but you can can got 60 shares of the other thing for the same price. If the 300$ stock raises by 1 dollar… you've made a dollar. but if the 5$ stock raises by a dollar... you've made 60 dollars!
This seems like fallacious thinking imo, because the bigger share will swing harder than 1$ no? They could easily swing by the same percentage. My main problem with expensive stuff like Tesla is that I cant buy or sell it in spread out parts, but have to immediately buy it an engagement ring.
My crypto strategy has been extremely short-term, often holding for only a day or less before selling.
I keep hearing that Bitcoin is "safer" than the other cryptos and is "expected to go up to x" but it's incredibly risky and if you get a sudden ten or twenty percent gain it's probably better to take the money and run.
Hard disagree here. Day trading is extremely hard and usually ends in losses. Plus, you pay capital gains taxes over it. I honestly believe bitcoin is a very safe and predictable investment. I used to think it was a bubble without intrinsic value, but it has scarcity which dollars don't, now it's becoming a hedge against inflation and most importanly, is gaining lots of legitimacy because financial institutions are buying bitcoin now. I'm just waiting for the big March dip, then buying loads, holding for 5-10 years and only selling if I see an obvious overvalued peak awaiting correction. Of course, there's always the chance that the government declares it illegal and it goes up in smoke so who knows. I can definitely recommend holding instead day trading though.
This seems like fallacious thinking imo, because the bigger share will swing harder than 1$ no?
Not really. Bigger stocks will get jumps when they make big announcements sure, but they don't particularly do better or go faster than anything else. Not in proportion to the base price of the stock anyway, if they've spent decades becoming an expensive stock.
Its about getting a lot of shares in something while its cheap and then that thing doing well.
I just used 1 dollar as an example. But if a 300$ stock raises by 5$ and a 5$ stock raises by 5$… which one has done better?
This last year has been a weird example time because pandemic, so there's been huge drops and rises, but typically the big stuff doesn't increase that uch compared to how uch you had to invest to get it.
Hard disagree here. Day trading is extremely hard and usually ends in losses. Plus, you pay capital gains taxes over it. I honestly believe bitcoin is a very safe and predictable investment. I used to think it was a bubble without intrinsic value, but it has scarcity which dollars don't, now it's becoming a hedge against inflation and most importanly, is gaining lots of legitimacy because financial institutions are buying bitcoin now. I'm just waiting for the big March dip, then buying loads, holding for 5-10 years and only selling if I see an obvious overvalued peak awaiting correction. Of course, there's always the chance that the government declares it illegal and it goes up in smoke so who knows. I can definitely recommend holding instead day trading though.
I agree with day trading being much riskier than long-term investing for stocks, but crypto is so volatile and prone to manipulation (which is completely legal) that holding on to it carries a large amount of risk.
We're probably better off not getting involved in Bitcoin at all honestly, with how expensive it is now.
Again, I think bitcoin is actually quite predictable in the long term, it's just volatile in the short term, but who cares about the short term.
Could we be seeing $60.000 per bitcoin soon? I bought in some more yesterday.
It's always good to split up your portfolio as per your age. I would strongly suggest people less than 35-40 have high risk portfolios. Mine is currently 80% stocks, 10% etfs 5% cryptos 5% liquid cash. Once I cross 35 it would gradually flip over to mixed etfs and less of individual stocks/cryptos.
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–- Update From New Post Merge ---
@xan:
I would not recommend cryptos to anyone. There is literally no asset behind it which determines whether it goes up or not. Its just fancy gambling.
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Woah what a change in perspective to happen in few months.
Post a lot of research and discussions with few people knowledgeable in cryotos, I retract the above quoted statement entirely. Cryptos are worthy investments but surely if you can handle only high risk and high volatility
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