On a scale of 1-10, how bold do you think you are as an investor?
I put myself at a 4.
Should I be bolder?
It is a rhetorical question I asked a friend in regards to my investing strategies, as I feel that I am not bold enough in my movements. For instance, we are hitting ATHs in Bitcoin and it hasn't flowed that strongly into alts, so it might be a good time to skim a little and buy some of the tokens that I find look interesting. Perhaps, I would then be able to catch the ladder upward on the alts, when the inevitable correction on BTC arrives.
Or something like that.
I am not a very good trader.
I don't seem to find the time like I used to back five or six years ago, and I don't think I am as bold as I was. There are a few reasons for this perhaps, one being age, but the other being experience. While the "wins" were great when they happened, I also have suffered quite a bit of loss, where I have made rash decisions. Buying too early, selling too too early - selling too late.
I guess the other aspect is that the amounts are a bit larger too now. Back in the past, playing with 30% of my holdings still didn't amount to much, so if I lost it, it wasn't going to be the end of the world. Doing the same now would come with a much larger fail impact. But, this is why I am wondering about boldness, because while there is more risk, there is also a fair bit more to gain, and the difference it makes on my financial situation is potentially quite extreme.
It is always interesting to look at the percentages of things, where for instance people will say "save 10% of your income" consistently, which isn't bad advice. But, there is a difference if you earn a 100 a week or a million a week, isn't there? While saving 10 a week might be difficult on an income of 100, it should be pretty easy for someone earning 50 million a year, to put away 80% of it and still have an "okay" standard of living.
When living off 20% of the income is 10M a year.
It also means that "playing" with 2% of the income on the markets, is a million in the pocket, and it would be pretty easy to play with 5M and if losing it all, barely feeling it. But of course, the actual chances of losing it all are pretty slim, especially in the traditional markets, where it is possible to take a percentage across high to low risk and yield assets, to mitigate losses.
But, these are examples of extremes on the scale, where there is one that is pretty dire, and the other that has incredible excess. The challenge is a little bit up from the dire range, where there is something, but there is also a fair amount of financial need. At this range, while there might be the ability to save, it isn't enough to be "throw away" money and loss is will impact on standard of living and opportunity. This means that the "percentage approach" works, but the mindset is generally more conservative, with less going into risky assets.
I am in this category.
But, nearly everything is in crypto, so it is all exposed to the fluctuations of the markets, so taking a 95% technical loss at the depth of the bear is familiar. What I should have been doing if I was smarter, was skimming off earnings continually to go into more traditional assets, but there is also the "greed" aspect of it, where I also work under the assumption that crypto will be the most profitable by far.
Perhaps the other difference since "back in the day", is that I have gone through a lot personally in that time and my brain has been literally physically affected. A lot of trading is about mindset, and I think that my current brain isn't well conditioned for trading. It makes me less confident, more indecisive, and also hampers my ability to learn. This last point means that I am far more likely to operate on defaults that are ingrained in my habits, than explore new options.
Invest into what you know.
Which is why most people will invest into what everyone else is investing into, because they are comfortable doing so. The average person doesn't really explore the options available, and most of us are very risk-averse, so we won't even think too much about putting a percentage into high risk vehicles. But, this also means that "high risk" is anything that we don't know much about, so we can think it is high risk, even though it might not be.
Is crypto high risk?
Well, a lot of it is, but I am of the opinion that the industry itself is going to start moving into more mainstream areas, and the risk will come down, because *people will know more about it. Things seems far less risky, when we feel we understand what is going on.
And, maybe this is why I should be a little bolder in some of my crypto activities, because I do think I know something, and I also think that there is a future. I am not looking for a quick exit, I am looking for a sustainable lifestyle. Nothing fancy, but something somewhat reliable, that gives my family options that they wouldn't have otherwise.
1-10, how bold are you as an investor?
Taraz
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Posted Using InLeo Alpha
I am probably around the same range as you at 4. I have my traditional investments that I think are going to be around for a long time yet. It seems there is a general feeling now that crypto is still going to be a disruptor, but it won't be the fiat killer many thought it would. I think taking gains and tucking them into some alts and maybe some traditional investments isn't a horrible idea.
I often think that it is a matter of alignment. Crypto people tend to think that it is going to happen very fast, as if it is like a switch and then crypto rules. I tend to see it as something that even under best circumstances, will take decades - and I might not see the results. But, the shift has to be made eventually, as the fiat system doesn't work, even for the fiat lovers.
Yep. I need to start :)
Yes, you are probably right, it could happen one day and likely will, but it isn't going to be overnight. I was just looking at moving some ETH into something else, but I don't know what!
I am a solid 4,5! :D
Show off.
I would be around the scale of 2, because to be a good investor regardless of a good calculative mind there needs to have a bag of experience which would help to gear up profit.
I felt that, watching rich people accumulating raw wealth dint of choice and sometimes predisposition, of what would happen next and that worked out.
But what you pointed out that, average people would invest into the commons, it is way normal a fact. Because losses would be turning factor what to do next - bankruptcy is also taking place everywhere.
Average people are unfortunately like me - average. I might be a little more below average, but I am trying to talk myself up a bit :)
Would you like to be a bolder investor?
No, not yet ha ha. I am trying to be a better learner, even if to be an investor, I would start out low and slow into the sector I know best.
Just I said, its about practice, letting the years roll on. Gradual set up of gain is what I believe takes to a better stage. I fear bankruptcy and bolder step is a far far cry.👍
It requires a lot of knowledge to do any invest in crypto because before investing in anything, you should be completely aware. When you do so, then you can have a good idea of profit and loss.
I think that we can never know enough to be sure, so with all investments, there is a fair bit of "faith" involved.
Yes, 95% people invest as you have said. Faith is our basic unit in all aspects of our lives.
I sold ETH at the beginning of bear markets. The first time ETH reached $1400 and I sold at $800. Then I bought it for $100 and $230. The second time I sold ETH for an average of $3300. And for the third time, I will also wait for a bear market.
I mean... if you're a 4, I'm probably at a -3 xD
I'm definitely not a good trader and while I have the capacity to obsess over a subject, I'm trying not to get too invested in crypto, for fear it will lock me out. The only way it can be sustainable in the long-term if if I'm not overly invested emotionally.
Like, I've met a few people my age who are in this "crypto craze" - you know the type, probably, discovered crypto like a couple years ago and are sure they're gonna be the ones who become millionaires off of watching investors on YT. I don't think those are good investors, either. What's more, I don't think they're gonna be long-term investors. When the market next drops, I think a lot of these people are going to grow disillusioned fast. Because they invested too much (both literally and emotionally).
As an investor, I'd probably be a 5. I like to invest in blue chips, but I also try penny stocks. I got burned a lot in crypto games that had a pump and dump, and rugpulled, so I am now focused on just a few tokens.
Not being able to time the market perfectly is a common problem for most people. If it was easy, everyone can do it. That's why I like to say, buy when happy, and sell when happy.
Interesting sharing. Hmm, I think it depends on what the definition of bold is. From a personal assessment perspective, I would give myself 8, because I take a lot more risk when it comes to investing compared to people around me.
Then again, I am a believer of an investment is only risky when one doesn't know or understand the product. If one knows what they are getting into, and is aware of the risks, then I don't see what's so "high risk" about the investment.
It's also a matter of perspective sometimes. I came across an article somewhere - the writer wrote people always say cryptos are risky and "one could lose it all", and hence, people shouldn't invest in them. But if you reframe, a portfolio of 98% cash and 2% bitcoin would have outperformed a 70% equity and 30% bond portfolio over the past decade or something. And the first portfolio is actually less risky because the worst loss is only 2%, while equities and bonds can fall 20-30% on some years. So are cryptos really risky? Haha.
I'm probably a bit more risky than you so I'd give myself a 6. However, I am also driven to invest in companies and crypto that I think exist as a benefit to society. Almost all of the diversified ETFs I hold for the general market have some tie into social justice (not necessarily ESG though).
I also hold quite a bit of crypto with PoS blockchain cryptos like BNB, SOL, and ADA that I can stake to earn ROI on the staking bonuses. Finally, when I do take profits, I typically rotate those in Berkshire Hathaway stock, since Buffet is a master and his company is basically a diversification of blue chip stocks. When I feel the time is right to try and buy low, then I sell some BH and take a flyer on some shitcoins! That is how I struck it big on MATIC and LUNA 4 years ago.
This is where I think most of my crypto value is - I don't really have anything traditional, other than a few options in the company I work for, which I quite like.
I haven't staked any of these!!
You have it all worked out. I am jealous :)
Probably a 3 or 4. But i've found that most of the money i've made has been sitting on my hands doing nothing than to trade the ins and outs of the market.
Am not earning any money
I don't have any investment so I doubt I could be a bold investor
But probably I can invest time
I’d put myself 6 because I can invest with almost all the money I’ve got on me but at the same time, it is good to know about risk management so I need to put that in use too
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I might not be a bold investor at such. But I could sell some and stake some.