I always wondered why such renowned investors always said to invest no more than a small percentage of your wealth. Considering that most say fiat is crap and that we should always be invested.
It’s kind of contradictory to say only a small percentage be invested and then saying fiat is crap. While they have hundreds of thousands in stocks begs the question, why are they promoting retail to invest small amounts only, when they are mostly all in.
**Masturbating the idea of most retail investing more than they can afford to lose:**
I know most here invest more than they can afford to lose, some are even lucky to get more money in crypto gains than they have in their personal bank. But I guess we all have a common trait, we are too volatile to the market, working while investing in crypto is taking it’s tool on the job.
I know It’s affecting me, working while constantly worrying about my investment is stressing and it prevents me from working or even try to better myself in my area (programmer).
I loved to code when I was in college, and I could probably even make a crypto bot, but constantly looking at the chart is mesmerizing, worrying and stressful. Prevents me from doing anything else at all.
I’m currently 20% bank, 30% stocks and 50% crypto and apart from crypto, stocks also have this effect on me.
Maybe this is the why, why big investors tell us to invest small amounts, it prevents us from doing our job, a job that stimulates the economy, not only that it creates more volatility in the market, as unexperienced investors tend to create a more riskier environment, a small correction could lead to a major crash if enough young investors got spooked.
Tell me if you agree/disagree or have anything else to add.
I’m balls deep in crypto because I’m in mid 20s and I can afford to lose all.
I have plans for my money: house, new car. Preferably by next year, so I need some stability. Can’t afford investing too much in crypto and then face another Tsunami of Red Cones right before I want to make a purchase.
So, I only invest what I can lose.
A little bit of real estate would be a nice addition. But I like the 50% crypto. Maybe metals too
You can lose your money in all sorts of ways. But
Cash is in my opinion the riskiest, losing 7% annually. And stocks are overvalued, you get 13 cents of earnings per share, and the share will be $300. So we buy crypto
You had me at “masturbating”
You’re in too deep buddy. Constantly looking at the charts does you NO good, especially with that market the way it’s been the last few months. If your a dev, it will destroy your focus – you’ll simply not be as effective.
If you don’t need the money right now, just relax – set price % drop alerts… if there’s no alert, there’s genuinely NO reason to look at the charts (this was the biggest thing that helped me get out of constant chart checking!)
In the meantime stake as much as you can – decent returns and if it’s locked up your can’t trade it 😂
“I always wondered why such renowned investors always said to invest no more than a small percentage of your wealth.”
You misunderstand, you should only have a small percentage in high risk assets, like crypto or penny stocks.
Leaving more than a few months expenditure in cash is folly. Cash is for spending, not for storing.
Get on the housing ladder and make mortgage payments rather than rent payments.
Start a pension fund, DCA cash each month into a Tracker fund. Low cost, low risk, decent rewards over time. Getting rich slowly, is still getting rich.
Once you have the above sorted than you can perhaps invest 3-5% in high risk assets like crypto, and I would only include the big players such as Bitcoin, etc… In truth I’d avoid this sector period, long term it will crater IMHO.
Clearly many here have gone balls deep into crypto, dreams, belief, hope, and all that.
“dreams, belief and hope” should play no part in investment.
To end…. THE MOST IMPORTANT THING TO INVEST IN IS YOU, and your earning potential.
I would disagree with you. I feel its important to not put all eggs in one basket. I love crypto but we should all be realistic here. Not everyone can afford a -30,40% portfolio even though its temporary. You should always prepare for worse.
The problem is that while fiat is crap, almost all crypto are going to be crap too. You can’t know for sure what the winners will be years from now, those that will stay relevant…. So you shouldn’t go all in in anything that could go to zero years from now.
Also, “big investors” going hundreds of thousands of dollars is not going all in for them.
Also 2, “big investors” have real state and other solid investments which they use as assets to borrow against them. So they leveraging on crypto is not the same as we mortals do
That’s because the super wealthy derive all of their wealth from you not investing in their company, but buying their shit with your shitty fiat.
Their expenses are backed by their substantial invested wealth that just keeps building because people keep buying and then it’s worth more collateral.
And so on and so forth
They don’t even need fiat in the bank to back a mortgage like you or I would … so essential your shitty fiat buys their shitty product with makes their company more valuable and they get to buy bigger things backed by untaxed shares …
I really think they invest only a little part because their little part means $1M.
I 25% bank, 25% stocks and 50% crypto. I need money to buy a house and only investing a little wont give me that goal.
***Life is a gamble and I am here to play hard.***
I’m sorry but I can’t remember anything that you said after masturbating.