cryptocurrencies

Status
Not open for further replies.
No strategy can guarantee you from losses, but for some time now I've held the view that a balanced multi-asset portfolio is the best way to balance risk and reward.
See something like Ray Dalio's All-weather portfolio or the Permanent Portfolio strategy.
 
Big Neville Southall said:
Not cryptocurrencies this, but from my limited knowledge on exchange rates, I'm thinking it might be a good idea to buy some Euros today on the Forex market, and then sell them again when the pound probably falls in the coming days to make a quick profit.

The fees on your normal exchanges places are too high, but on the Forex market I think that's where all the bigwigs go. Like all investments that I think of doing I bottle it and don't do it, but then only looking at 3 figure amounts so it's no life changing gain or loss.

Anyone else thinking of doing similar?

Btw, Ive not done this before and my knowledge on investments is pretty useless, so what Ive wrote may be complete rubbish.
Click to expand...

In FX market you need to understand the margin conditions, spreads and reputation of the broker you use.

Anything under say $10k is going to have a wide spread attached to it. Better to open a bigger account but open a small position so your fees are less.




evilwebby said:
Serious ouch today.
Makes the Stock market selloff look like a picnic in comparison.
Click to expand...

Lots of panic as people convert to cash due to the virus. Seemed to find its bottom at $3800.


evilwebby said:
No strategy can guarantee you from losses, but for some time now I've held the view that a balanced multi-asset portfolio is the best way to balance risk and reward.
See something like Ray Dalio's All-weather portfolio or the Permanent Portfolio strategy.
Click to expand...

Multi asset is great but never really going to make real money from it...just to keep funds diversified and 'safe' its decent...

Instead of say 6 boring multi assset products/strategies id rather go in for a few high risk punts...

FX / Crypto or property...the middle ground i dont think is really worth the risk/ reward.
 
Zatara said:
Multi asset is great but never really going to make real money from it...just to keep funds diversified and 'safe' its decent...

Instead of say 6 boring multi assset products/strategies id rather go in for a few high risk punts...

FX / Crypto or property...the middle ground i dont think is really worth the risk/ reward.
Click to expand...

I couldn't disagree more with you TBH.

A portfolio that averages 7% doubles in value every 10 years. Those sort of figures should be your goal for long term investing. The whole thesis of Investing is based on the idea that the world becomes a slight better, richer and more productive place every day.

Crypto is not an investment, it is a speculation, although there is a place for speculation the downside is that risk of permanent capital loss is very high. If you are chasing pie in the sky returns then you are dialing up your risk. A few will win big; the majority will lose their shirt.
 
evilwebby said:
I couldn't disagree more with you TBH.

A portfolio that averages 7% doubles in value every 10 years. Those sort of figures should be your goal for long term investing. The whole thesis of Investing is based on the idea that the world becomes a slight better, richer and more productive place every day.

Crypto is not an investment, it is a speculation, although there is a place for speculation the downside is that risk of permanent capital loss is very high. If you are chasing pie in the sky returns then you are dialing up your risk. A few will win big; the majority will lose their shirt.
Click to expand...

For 7% id just invest in property like i mentioned...

Prices here increase approx 5-10% a year and rental is usually around 7-8% as well before fees/taxes.

Choose the right managers in FX alone and you should be able to customize a portfolio for 7% as long as there is volatility.

As for crypto being speculation -- everything is speculation -- its simply becoming another FX derivative...find the right manager and youre laughing.

Im late in the game on crypto but the guys who went in early (like in FX 15-20 years back) with arbitrage models will be turning over hundreds of percent.
 
Zatara said:
For 7% id just invest in property like i mentioned...

Prices here increase approx 5-10% a year and rental is usually around 7-8% as well before fees/taxes.

Choose the right managers in FX alone and you should be able to customize a portfolio for 7% as long as there is volatility.

As for crypto being speculation -- everything is speculation -- its simply becoming another FX derivative...find the right manager and youre laughing.

Im late in the game on crypto but the guys who went in early (like in FX 15-20 years back) with arbitrage models will be turning over hundreds of percent.
Click to expand...

Crypto has no cashflow, and many would argule no intrinsic value. It is entirely possible for it to become worthless.

Equities and bonds have cashflow. When you buy them you are buying all the future cashflows of that investment discounted to the present.

Property is a legit investment vehicle, but the fees are high, taxes are a big factor and liquidity is an issue. It's most certainly not the cash cow that it once was, and even when you use leverage to increase your return, you are taking on the risk that comes with leverage.
 
Every market has taken a hammering, bitcoin is still up 34% on the year! Iv seen these corrections with bitcoin before and
it will happen again, its the signal to buy more for me!
 
evilwebby said:
Crypto has no cashflow, and many would argule no intrinsic value. It is entirely possible for it to become worthless.

Equities and bonds have cashflow. When you buy them you are buying all the future cashflows of that investment discounted to the present.

Property is a legit investment vehicle, but the fees are high, taxes are a big factor and liquidity is an issue. It's most certainly not the cash cow that it once was, and even when you use leverage to increase your return, you are taking on the risk that comes with leverage.
Click to expand...

If a manager is using arb models across different crypto exchanges with a clearer then it wont really matter about its value as they're going in/out in milliseconds.

nikom court said:
Every market has taken a hammering, bitcoin is still up 34% on the year! Iv seen these corrections with bitcoin before and
it will happen again, its the signal to buy more for me!
Click to expand...

Probably a smart move to wait until sunday US morning to see what happens...generally less liquidity sundays though traders may be taking positions ready for another bloodbath monday :o
 
Zatara said:
If a manager is using arb models across different crypto exchanges with a clearer then it wont really matter about its value as they're going in/out in milliseconds.



Probably a smart move to wait until sunday US morning to see what happens...generally less liquidity sundays though traders may be taking positions ready for another bloodbath monday :o
Click to expand...
The bitcoin market doesn't close mate,it's 24/7 365 no trip switches hand holding or other bull!
 
Status
Not open for further replies.

Welcome

Join the Everton conversation today.
Fewer ads, full access, completely free.

→ Log in 🔑 Register
🛒 Visit Shop

Support Grand Old Team by checking out our latest Everton gear!
Back
Top