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gogodr I post too much Reputation: 125
Joined: 19 Dec 2006 Posts: 2041
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Posted: Tue Feb 02, 2021 2:47 pm Post subject: About investing in cryptos or stock |
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Some people are interested in investing in cryptos, stocks or forex in here so I think some awareness is due.
You can start with little money and grow up your investment portfolio. Some platforms do have entry barriers where you need a large capital to get in, but there are other platforms that do not have that kind of entry barriers and really you can get into investing with as little as $100.
It is all about recognizing what amount of money you can afford to invest.
When investing the main thing to recognize is the risk factor of the thing you are investing into. Some cryptos are more volatile than others and the same goes with stocks.
There is no technical analysis or strategy that is 100% safe to use. Markets are highly speculative and analysis only helps you to reduce risk. It is like playing Black Jack, you can either play blindly or you can follow a strategy to better your odds of winning.
Diversifying reduces the risks but also the returns. The recommendable thing to have is diversification so that some of your assets win and some others lose, but overall you get a consistent win.
Hyped stocks and cryptos are things that happen at many scales all the time, this kind of investments are very high risk and thus very high reward also.
Never invest more than what you can lose, comes with a little cheating. If you manage to understand the risk of what you are investing in then you can do something like putting $500 in a CFD with an exit strategy where if you go below $50 in loses you close the deal and take the lose. That way you can put $500 on the line on a medium risk investment and potentially get a $100 profit or more only risking $50.
With that said, the money you are risking investing has to be money you are able and willing to lose.
Safe investments usually get you 5% or up to 10% / year and those can be mutual funds, robo investors, copying portfolios, etc.
Medium risk investments can get you up to 30% / year usually with a diversified portfolio of stocks and cryptos of higher volatility.
High risk investments can get you over 100% / year and is usually done by day trading. (Closing daily deals and getting 1~2% daily profit)
Hope this helps someone that is looking to start investing, there are many videos on youtube that explains more in detail, this just comes from my own research and personal experience.
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Kurifodo I post too much Reputation: 23
Joined: 09 Oct 2008 Posts: 2782
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Posted: Wed Feb 03, 2021 6:47 am Post subject: |
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learn when to take profits, when the top growing reddit communities are all about investing it might be the top. dont follow the herd, because if you do what other people are doing that means you are probably late. learn technical analysis, buy support and take profits into resistance. always have stop losses and raise your stop loss as the price goes up.
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HackOtaku I posted the 500000th topic Reputation: 81
Joined: 31 May 2007 Posts: 228
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Posted: Wed Feb 03, 2021 9:30 am Post subject: |
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Good advice. Also trends like gamestop. The classic advice of if your cab driver is telling you to buy a stock, it's too late. Started checking this book out in light of all this and I recommend it.
Rent a center (RCII) is down 5 percent to 44.2. If I had money to invest right now, I'd be buying that and cocacola at 48.9. They wont explode or anything but I think they are both undervalued right now, probably good returns in 3-5 years.
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Cryoma Member of the Year Reputation: 198
Joined: 14 Jan 2009 Posts: 1819
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Posted: Wed Feb 03, 2021 1:21 pm Post subject: |
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stop losses are for pussies
wake up at market open and watch those squiggly lines
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Kurifodo I post too much Reputation: 23
Joined: 09 Oct 2008 Posts: 2782
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Posted: Thu Feb 04, 2021 5:30 am Post subject: |
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Cryoma wrote: | stop losses are for pussies
wake up at market open |
Market open means nothing anymore with the advent of futures, otc desks and dark pools. That's noob speak.
And stop losses should always be used for trades. A trade is all about making money out of the volatility. Trading =/= investing tho. If you are investing for the long term, you can go without stop losses because you believe in the fundamentals.
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