Just because prices are high, doesn't mean that is a good investment.

istiak2277

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Quote from: magneto on December 09, 2021, 11:03:56 PM

Shouldn't it actually be the reverse?

If prices are low, then it is more likely that it is going to be a good investment going forward.

People tend to forget that returns is a function of both present and future price. The higher present values are the lower the percentage returns are going to be as well.

Your concern is valid when that project has enough potential utilities. A project with no use case or development won't even survive the market no matter what the price is. Privet investors would dump their tokens to the market at any price they got. Lower percentages of return are also good if they reduce your risk.

Quote from: magneto on December 09, 2021, 11:03:56 PM

The higher present values are the lower the percentage returns are going to be as well.

It's not true if you can hold that project for a long time. The highest BTC price in 2013 was 1100$ and if you were in 2013 you must have thought it became too valuable and won't go higher. But look at the price of BTC right now. The longer you can hold the more you will get profits.

habebe

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Well, the price of bitcoin is high, does that mean you deserve to join an investment into bitcoin? however, it's really that simple that you need to make sure that you can invest little by little just in case or maybe you can hold on to what you can invest first and try to be patient before joining so that you don't regret it later, the investing is like gambling you never know when you will win or lose so you need not immediately trust make sure really if you want to invest.

Wawa2013

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Quote from: Fatunad on December 13, 2021, 02:16:53 PM

Quote from: stadus on December 13, 2021, 07:33:36 AM

That's what some people thought about crypto, they are likely to get more interested if the market is bullish, and I would say it's wrong because they thought the price will continue to rise that they want to exit with a huge profit, their greediness sometimes will put them in a situation that they will be force to sell at a lose as they would not see the dark side, or the reverse of bull run which is the bear run.

There would be always that wrong impression in all of things on which you would really be believing until reality would happen and slap into your face and made you realize that you were wrong.
Learning do always comes in the end whether it is acquired through research or would be acquired with bad experiences.This is where people do make out
decisions basing on what they had done in the past.
Be wise and Be aware on what are things happening because this will really be helpful on your investment journey.

Sometimes we are too late to realize the mistakes we made, that investing during a bullish trend is not always good. But it doesn't matter,
because we will learn from those mistakes. So that in the future we don't repeat the same mistakes, bad experiences when investing can make us
more careful and wise when making decisions. We will become more and more aware of how to invest properly. I admit that being a successful
investor is not easy, we do have to go through a long process to be able to make the right decision. Learn by doing is what everyone has to do
if they want to make a profit when investing. It doesn't matter at first we experience losses, but next we know how to minimize losses and
maximize profits. Never give up if we experience failure, must rise again to achieve success.

Fatunad

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Quote from: stadus on December 13, 2021, 07:33:36 AM

That's what some people thought about crypto, they are likely to get more interested if the market is bullish, and I would say it's wrong because they thought the price will continue to rise that they want to exit with a huge profit, their greediness sometimes will put them in a situation that they will be force to sell at a lose as they would not see the dark side, or the reverse of bull run which is the bear run.

There would be always that wrong impression in all of things on which you would really be believing until reality would happen and slap into your face and made you realize that you were wrong.
Learning do always comes in the end whether it is acquired through research or would be acquired with bad experiences.This is where people do make out
decisions basing on what they had done in the past.
Be wise and Be aware on what are things happening because this will really be helpful on your investment journey.

stadus

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That's what some people thought about crypto, they are likely to get more interested if the market is bullish, and I would say it's wrong because they thought the price will continue to rise that they want to exit with a huge profit, their greediness sometimes will put them in a situation that they will be force to sell at a lose as they would not see the dark side, or the reverse of bull run which is the bear run.

dmamigo

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Obviously not, with the current news in India that a bill might be introduced, people are panic selling nearly every time the market trends go down, and with all these, people who bought BTC or any alts at their highs, their money will be stuck so as said in the topic it is true, moreover very much practical. But personally, I believe at a certain point it will be a profitable buy because I believe the all-time high will also cross, but that is my speculation.

TheGreatPython

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Quote from: Mauser on December 11, 2021, 05:25:54 AM

I fully agree with you that a high price is no indication that it's a good investment. The only thing that a high price tells us is that it was a good investment in the past. All the investors who gave been part of the rally made money. But this is not a guarantee that the price is going to rise higher in the future. There are many factors that determine if a project is a good investment. Also the price could have been manipulated to be high without any fundamental justification. A ponzi scheme also has a very high price, right until the moment the bubble burst, then it becomes worthless. Better not to trust a high price alone.

If it was just a thing about the past then I would understand, but as we can see even in the last 1 year we have seen 2x increase in bitcoin and that should tell you that every single year it is going up like crazy. Sure we had bad years as well and people are not entirely sure about if we will have a bad year or good year, that part is understandable. But to say that bitcoin did all the increase it could and will stop here would be naive to think about.

Bitcoin may drop here and there, it may not be 2x every year, but usually it is, in 2017 we had an amazing year, 2018 was bad, 2019 started with 3.6k and ended with 7k and 2020 started with 7k and ended with 30k and 2021 started with 30k and ending with 50k or so, reached higher but lets forget about that and just say ending with close to 50k. So if you still want to doubt bitcoin, then go ahead and doubt it, but I won't.

Mauser

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I fully agree with you that a high price is no indication that it's a good investment. The only thing that a high price tells us is that it was a good investment in the past. All the investors who gave been part of the rally made money. But this is not a guarantee that the price is going to rise higher in the future. There are many factors that determine if a project is a good investment. Also the price could have been manipulated to be high without any fundamental justification. A ponzi scheme also has a very high price, right until the moment the bubble burst, then it becomes worthless. Better not to trust a high price alone.

andriarto

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Quote from: jostorres on December 11, 2021, 01:02:20 AM

Quote from: MNbag on October 05, 2021, 10:44:31 AM

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

To a certain extent, a high price often means that investors have faith in the fundamentals of the commodity (For example, one of the most expensive shares in the American stock market is Berkshire Hathaway, which has consistently outperformed the S&P 500 since 1965).

Price doesn’t say whether the coin you’re investing in is good or not, unless we are talking about the market cap. I have seen coins/assets with ridiculous prices, but their market caps are nothing to write home about’ lol. While there are assets with a very low price that might even be $0.001, but when you check their market cap you will see that their market cap is really huge.

That’s when you would be prompted to check the price chart to see how the coin has performed over days, weeks, months, and you would see that they have really made a huge percentage, and some of them would go from something like $0.00001 to $0.01. That’s still a low price, but it’s a huge profit from if you calculate it. So it’s not really a matter having an expensive price.

right, a large market capitalization supported by a large and solid community will bring a coin to its glory, on the other hand, with the support of a product or a large plan of a coin will certainly add to its positive value. so a high price, not necessarily a good coin, it is different with bitcoin where it only has a small supply, and because it has trust, the price is even higher, even though ethereum actually has more features than bitcoin

Cindella

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You cannot judge an asset based on its price and invest in it. Through the analysis of the market, understand the price changes and the right timing of investment.

jostorres

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Quote from: MNbag on October 05, 2021, 10:44:31 AM

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

To a certain extent, a high price often means that investors have faith in the fundamentals of the commodity (For example, one of the most expensive shares in the American stock market is Berkshire Hathaway, which has consistently outperformed the S&P 500 since 1965).

Price doesn’t say whether the coin you’re investing in is good or not, unless we are talking about the market cap. I have seen coins/assets with ridiculous prices, but their market caps are nothing to write home about’ lol. While there are assets with a very low price that might even be $0.001, but when you check their market cap you will see that their market cap is really huge.

That’s when you would be prompted to check the price chart to see how the coin has performed over days, weeks, months, and you would see that they have really made a huge percentage, and some of them would go from something like $0.00001 to $0.01. That’s still a low price, but it’s a huge profit from if you calculate it. So it’s not really a matter having an expensive price.

magneto

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Shouldn't it actually be the reverse?

If prices are low, then it is more likely that it is going to be a good investment going forward.

People tend to forget that returns is a function of both present and future price. The higher present values are the lower the percentage returns are going to be as well.

Fredomago

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Quote from: bitzizzix on December 09, 2021, 10:25:31 PM

I don't think it's about price, it's about fundamentals and good analytical knowledge.
If a project is fundamentally strong, the management is good, the business prospects are good going forward and there is no problem to invest even though the price is already high.
and the price only determines how much quantity you can buy and for long term goals because you believe in the future it will give good results.

If the fundamental is good, the chance of success is also good, from that point of view investing is not be wasted. The price can be manipulated but the success always define by continuous development. It's making sense that by choosing project that have solid fundamentals will have a better chance of success in the long run.

Hypes is just another part of this investment that you needed to understand. You can play and make a good profits
if you know when to place your entry and exit point.

bitzizzix

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I don't think it's about price, it's about fundamentals and good analytical knowledge.
If a project is fundamentally strong, the management is good, the business prospects are good going forward and there is no problem to invest even though the price is already high.
and the price only determines how much quantity you can buy and for long term goals because you believe in the future it will give good results.

palle11

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Quote from: Alisha FR on December 07, 2021, 11:52:10 PM

good advice from you to me as a reader, I myself do not count on high or low prices. but how the stock operates and how far it has gone so far. if they just came with a high price i would also think twice with those stocks. but speaking of trading, whatever it is we must be vigilant and always do a good analysis.

What matters is the utility of the project, if it is cheap enough you need good research through social media and there community to see what people are talking and reviews about it. And doing your own analysis about it to take your decision, not just doing blind investment that regret will come.

Alisha FR

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good advice from you to me as a reader, I myself do not count on high or low prices. but how the stock operates and how far it has gone so far. if they just came with a high price i would also think twice with those stocks. but speaking of trading, whatever it is we must be vigilant and always do a good analysis.

carlfebz2

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Quote from: xSkylarx on December 07, 2021, 01:15:29 PM

Quote from: n0ne on November 22, 2021, 05:27:39 PM

Quote from: Issa56 on November 22, 2021, 03:19:52 PM

You investing in a coin because the price have gone up is really a bad idea most of us that have been in Cryptocurrency for a long period of time have different experience about cryptocurrency, I believe we have all seen a situation where the team of a project pump the coin there self just to attract investors and then later dump it on investor so pls don't invest in a coin because the price have gone high.

Yes, there are coins that are highly manipulated by the teams. While choosing an investment of is a must to go with a coin that grows without any external factors. There are pump and dump groups that do this. Just shatter the coin once good investment is attracted towards it. So, many things are to be noted before investing. It is good to invest on well known cryptocurrencies of the top order than unknown coins.

Yes, but there are some teams that will take your money and run. It is extremely difficult to put your trust in anything right now, unless it comes from a well-known source. Also, with regards to the price, I believe that newbie investors primarily base their decisions on the fact that if the price is high, it is a good investment rather than looking for the lowest possible price. It is preferable to look for the cheapest coin that has a promising Whitepaper and make an investment in it.

You couldnt really say that all of those who invested early are newbies or noobs because there are people who do really take risk into those early points

and believing that they could make out enormous profits once the price had increased that much thats why it wont really be that right on generalizing everything.

On every decision you would make specially on investment then you should really be wise on doing that.

xSkylarx

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Quote from: n0ne on November 22, 2021, 05:27:39 PM

Quote from: Issa56 on November 22, 2021, 03:19:52 PM

You investing in a coin because the price have gone up is really a bad idea most of us that have been in Cryptocurrency for a long period of time have different experience about cryptocurrency, I believe we have all seen a situation where the team of a project pump the coin there self just to attract investors and then later dump it on investor so pls don't invest in a coin because the price have gone high.

Yes, there are coins that are highly manipulated by the teams. While choosing an investment of is a must to go with a coin that grows without any external factors. There are pump and dump groups that do this. Just shatter the coin once good investment is attracted towards it. So, many things are to be noted before investing. It is good to invest on well known cryptocurrencies of the top order than unknown coins.

Yes, but there are some teams that will take your money and run. It is extremely difficult to put your trust in anything right now, unless it comes from a well-known source. Also, with regards to the price, I believe that newbie investors primarily base their decisions on the fact that if the price is high, it is a good investment rather than looking for the lowest possible price. It is preferable to look for the cheapest coin that has a promising Whitepaper and make an investment in it.

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Quote from: josephdd1 on November 21, 2021, 11:19:53 AM

It is recommended not to buy on highs as after a rapid growth, it must be a correction, so you may lose. It is better to buy only on dips. Personally I follow such a strategy of buying on drawdowns and then hold. If you buy on highs, you are greedy, so you will not earn. You should sometimes let the bull run go and wait for the correction accumulating stable coins so as to buy when it will be the high time.

the condition for profit in investing in crypto is the timeliness of buying or selling, investing in crypto is not much different from other investments, if buy when the price is high or hype then the chances of making a profit are very small. trying to analyze before buying is important, don't be greedy and be fooled by the hype.

marilynmanson21

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when viewed from finance, ordinary people usually say that, but wise people often invest relying on logic and the purpose for which they invest, bitcoin is expensive but bitcoin has been notarized as digital gold, so people are competing to own it as well as physical gold, it can be concluded that in Fundamentally, financial markets are imperfect.

Topic: Just because prices are high, doesn't mean that is a good investment. (Read 757 times)