One Reason not to be "All Inn" on any Single Investment for Long

pinkflower

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Quote from: talkbitcoin on April 25, 2017, 07:10:32 AM

Quote from: pinkflower on April 25, 2017, 04:37:41 AM

Quote from: NS-Soul on April 24, 2017, 02:10:39 PM

Quote from: pinkflower on April 24, 2017, 06:18:22 AM

Quote from: lienfaye on April 23, 2017, 12:09:51 PM

Quote from: KuromaYoichi on April 21, 2017, 11:07:36 PM

Hmm if you said it like that it sound's true, if you somehow all in in one thing and need money when your investment is down, then preapare to suffer a huge loss. But it's his fault in the first place if he invest all his money. He should left some in the first place for emergency purpose. Putting all your money in one basket is very risky, if it success then you go big, fail and you lose your asset.

Exactly, the risk of losing your money is high if you focus in just one thing. diversifying your investments is really important although you cant take away the risk no matter how diversified your plan but somehow minimize it. its important also to have a cash on hand incase there is a sudden or emergency situation so you wont be empty handed if that happens.

Yeah but most of the forum members who are posting in this thread don have more than BTC1 in their wallets so its better to go all in with one investment. After LTC check the price of ETC. Its now at over BTC.0030. A few weeks ago it was only BTC.001.

That is more suicide move in investment you have no 1btc and then you will go all in .So if you are being scam you will have nothing .a good investor will dont do that move.

Going all in in one good investment is different from investing blindly. Ask all of the posters here who said that diversifying is good what altcoins are good for them. Im sure a good number of them will have scamcoins in their list of investments.

What now is the good in diversifying, if you diversified them on scamcoins?

i don't know about others but if i ever talk about diversifying, then i am talking about diversifying your "money" and that means for example investing in bitcoin and gold and some other stuff like real estate, stocks ,...

and besides the notion of "scam"coin is a bit weird to me! mostly because people have very different definitions of the word. to me all the altcoins are the same. they are there to be pump and dumped and if we are skilled enough, we can make profit from this scheme. but it is not an investment.

You should know what Im talking about because most of the posters here are members of a signature campaign. Like most signature campaigners we dont have enough "money" to invest, much less to diversify. All we have is our small campaign earnings to invest in what? Altcoins.

If your notion of an altcoin is they are there to be pumped and dumped then what does that tell you?

gentlemand

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Welt Am Draht

I don't buy this.

I have a stock market fund that basically sits there and does fuck all while others are furiously buying and selling and throwing customer money away. It has doubled in less than four years with lower fees than others and has beaten almost all of the frenzied funds. I won't be doing anything with it for a long time to come.

Similarly with crypto these days if you wait around long enough you'll get another pump. I think the whole thing is about enter a next level of hugeness so there's no way I'd be chopping and changing. I'll be sitting back and reaping the benefits. I'll qualify that by saying I'd only do it with an alt that I truly believed had a serious future of which there are only a handful. All the other ones are fair game and I'll juggle them with impunity.

talkbitcoin

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All I know is that I know nothing.

Quote from: pinkflower on April 25, 2017, 04:37:41 AM

Quote from: NS-Soul on April 24, 2017, 02:10:39 PM

Quote from: pinkflower on April 24, 2017, 06:18:22 AM

Quote from: lienfaye on April 23, 2017, 12:09:51 PM

Quote from: KuromaYoichi on April 21, 2017, 11:07:36 PM

Hmm if you said it like that it sound's true, if you somehow all in in one thing and need money when your investment is down, then preapare to suffer a huge loss. But it's his fault in the first place if he invest all his money. He should left some in the first place for emergency purpose. Putting all your money in one basket is very risky, if it success then you go big, fail and you lose your asset.

Exactly, the risk of losing your money is high if you focus in just one thing. diversifying your investments is really important although you cant take away the risk no matter how diversified your plan but somehow minimize it. its important also to have a cash on hand incase there is a sudden or emergency situation so you wont be empty handed if that happens.

Yeah but most of the forum members who are posting in this thread don have more than BTC1 in their wallets so its better to go all in with one investment. After LTC check the price of ETC. Its now at over BTC.0030. A few weeks ago it was only BTC.001.

That is more suicide move in investment you have no 1btc and then you will go all in .So if you are being scam you will have nothing .a good investor will dont do that move.

Going all in in one good investment is different from investing blindly. Ask all of the posters here who said that diversifying is good what altcoins are good for them. Im sure a good number of them will have scamcoins in their list of investments.

What now is the good in diversifying, if you diversified them on scamcoins?

i don't know about others but if i ever talk about diversifying, then i am talking about diversifying your "money" and that means for example investing in bitcoin and gold and some other stuff like real estate, stocks ,...

and besides the notion of "scam"coin is a bit weird to me! mostly because people have very different definitions of the word. to me all the altcoins are the same. they are there to be pump and dumped and if we are skilled enough, we can make profit from this scheme. but it is not an investment.

pinkflower

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Merit: 259

Quote from: NS-Soul on April 24, 2017, 02:10:39 PM

Quote from: pinkflower on April 24, 2017, 06:18:22 AM

Quote from: lienfaye on April 23, 2017, 12:09:51 PM

Quote from: KuromaYoichi on April 21, 2017, 11:07:36 PM

Hmm if you said it like that it sound's true, if you somehow all in in one thing and need money when your investment is down, then preapare to suffer a huge loss. But it's his fault in the first place if he invest all his money. He should left some in the first place for emergency purpose. Putting all your money in one basket is very risky, if it success then you go big, fail and you lose your asset.

Exactly, the risk of losing your money is high if you focus in just one thing. diversifying your investments is really important although you cant take away the risk no matter how diversified your plan but somehow minimize it. its important also to have a cash on hand incase there is a sudden or emergency situation so you wont be empty handed if that happens.

Yeah but most of the forum members who are posting in this thread don have more than BTC1 in their wallets so its better to go all in with one investment. After LTC check the price of ETC. Its now at over BTC.0030. A few weeks ago it was only BTC.001.

That is more suicide move in investment you have no 1btc and then you will go all in .So if you are being scam you will have nothing .a good investor will dont do that move.

Going all in in one good investment is different from investing blindly. Ask all of the posters here who said that diversifying is good what altcoins are good for them. Im sure a good number of them will have scamcoins in their list of investments.

What now is the good in diversifying, if you diversified them on scamcoins?

deisik

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Quote from: aTriz on April 24, 2017, 07:15:36 PM

I have talked with many people that has started their investment journeys just too early, they were not prepared and educated well enough.
That has later caused to lose most if not all of their funds because of one simple reason.
They did not secured themselves by using only the part of their funds to get into some particular project, or investment.

This is the golden rule of whole investing mantra, that you should never risk everything on one asset, because it is not worth it considering the risk

I agree with your attitude

In fact, I had fallen victim to this error myself in the past, though I was wise enough to call it a day just in time. But it is not so much about investing all as such as about staying away from investing more when you start losing. In other words, people are not complete idiots to invest all at once generally, but they are still fools enough to continue investing into a losing bargain when they actually have to withdraw their investments as soon as possible while there is still something to withdraw and their losses haven't yet turned catastrophic

Sled

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Bitcoin- in bullish time

Quote from: Weatherby on April 24, 2017, 04:38:59 PM

Quote from: Dmitry.Vastov on April 21, 2017, 10:04:21 PM

I've done this once and not a very clever move to do. Investing your money in only one crypto could lead to loss once it crashed. You should spread your investment. Not only on one but more crypto. Atleast it will cover your losses once one of your alt crashes. It also the depends on the alt you choose. Make sure you choose a good alt. Me i bought XRP, ETH and Dash. So far, it gives me good profit.

It is good to carry the band wagon of diversification in the crypto currency world but before doing that you have to understand everything about the team and have to follow all their updates,you really do not want to have a very long list of diverse coins instead select a couple of good coins and follow their development team and you will get an idea when the price will move.

Yeah, before you follow the hype or band wagon you need to make sure that you are following the right hype or path because sometimes those people that are starting to hype is just want to sell their bags to you so you will be the another bag holder, to avoid that it is necessary for you to do research first about the team and if their coin is worth it for long term and not only for short term.

aTriz

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I have talked with many people that has started their investment journeys just too early, they were not prepared and educated well enough.
That has later caused to lose most if not all of their funds because of one simple reason.
They did not secured themselves by using only the part of their funds to get into some particular project, or investment.

This is the golden rule of whole investing mantra, that you should never risk everything on one asset, because it is not worth it considering the risk.

Weatherby

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Quote from: Dmitry.Vastov on April 21, 2017, 10:04:21 PM

I've done this once and not a very clever move to do. Investing your money in only one crypto could lead to loss once it crashed. You should spread your investment. Not only on one but more crypto. Atleast it will cover your losses once one of your alt crashes. It also the depends on the alt you choose. Make sure you choose a good alt. Me i bought XRP, ETH and Dash. So far, it gives me good profit.

It is good to carry the band wagon of diversification in the crypto currency world but before doing that you have to understand everything about the team and have to follow all their updates,you really do not want to have a very long list of diverse coins instead select a couple of good coins and follow their development team and you will get an idea when the price will move.

CyberKuro

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Quote from: OROBTC on April 12, 2017, 03:15:15 PM

...

I have long written that diversification is a very smart idea. No one can predict the future, etc. But discussed below is another reason not be 100% in ANY investment, at least for long. I ran into this argument at a gold blog.

Imagine that you are 100% invested, "All Inn", in gold. Even if the price of gold were to go way up, there is still a big risk that many don't see. Namely what happens if there is a big price drop JUST when the owner might NEED to sell (eg, an unexpected emergency). If our imaginary friend bought in at $1275 gold (approx. price today), and then price drops to $900 (Martin Armstrong predicts a sharp price drop like this, prior to a big price rise, a "slingshot" price rise after its initial drop).

And then, just at a bad time for the gold owner, he might need money (US dollars) to cover an unexpected $200,000 medical bill. And he if forced to sell his gold at a 25% loss to cover his bills... Ouch! It would hurt even more should gold then go to $2500 per ounce.

So, it is unwise to be All Inn on gold, even if we were to be very sure that $2500 gold is coming.

The above scenario would hold for Bitcoin as well, or anything else to be held long-term.

Some of us gold owners have a saying: "Protect the precious." That means keep some powder dry (CA$H on hand) for the unexpected.

That's why medical assurance is a way to diversify investment so it can't ruin other savings whether in gold or bitcoin.
Cash savings is the most needed to prevent losing from other investments as well.
So yes, we need many asset and commodity as much as we could as backup plan just in case something happen.

SHAWN-MIDWAYS

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Quote from: shadelockme on April 21, 2017, 05:37:35 AM

Putting all our money for just one investment will make our future bleak, many economists advise us to invest in some sort of choice

And its good advice we all need to take to avoid losing our investment by putting everything in one basket. Diversification has been also been prove to be the best way to protect and grow our investments.

buwaytress

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Quote from: lienfaye on April 23, 2017, 12:09:51 PM

Exactly, the risk of losing your money is high if you focus in just one thing. diversifying your investments is really important although you cant take away the risk no matter how diversified your plan but somehow minimize it. its important also to have a cash on hand incase there is a sudden or emergency situation so you wont be empty handed if that happens.

I tend to think of my longer-term savings as investments these days and perhaps I am also beginning to accept that my crypto experiment is a small, small basket of diversification. Some very real life lessons (the sudden 40% loss of value to my local currency, for example) keep repeating themselves to me. Even if you don't "invest" with any attitude to profit, even savings should be diversified into several currencies.

OrangeII

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It is indeed very risky, to put all the money you have for an investment.
It may be very much a profit that you get if it really works, but no one will guarantee if the investment spot turned into a scam. It might make a big loss, rather than make a profit.

NS-Soul

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Quote from: pinkflower on April 24, 2017, 06:18:22 AM

Quote from: lienfaye on April 23, 2017, 12:09:51 PM

Quote from: KuromaYoichi on April 21, 2017, 11:07:36 PM

Hmm if you said it like that it sound's true, if you somehow all in in one thing and need money when your investment is down, then preapare to suffer a huge loss. But it's his fault in the first place if he invest all his money. He should left some in the first place for emergency purpose. Putting all your money in one basket is very risky, if it success then you go big, fail and you lose your asset.

Exactly, the risk of losing your money is high if you focus in just one thing. diversifying your investments is really important although you cant take away the risk no matter how diversified your plan but somehow minimize it. its important also to have a cash on hand incase there is a sudden or emergency situation so you wont be empty handed if that happens.

Yeah but most of the forum members who are posting in this thread don have more than BTC1 in their wallets so its better to go all in with one investment. After LTC check the price of ETC. Its now at over BTC.0030. A few weeks ago it was only BTC.001.

That is more suicide move in investment you have no 1btc and then you will go all in .So if you are being scam you will have nothing .a good investor will dont do that move.

pinkflower

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Activity: 868

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Quote from: lienfaye on April 23, 2017, 12:09:51 PM

Quote from: KuromaYoichi on April 21, 2017, 11:07:36 PM

Hmm if you said it like that it sound's true, if you somehow all in in one thing and need money when your investment is down, then preapare to suffer a huge loss. But it's his fault in the first place if he invest all his money. He should left some in the first place for emergency purpose. Putting all your money in one basket is very risky, if it success then you go big, fail and you lose your asset.

Exactly, the risk of losing your money is high if you focus in just one thing. diversifying your investments is really important although you cant take away the risk no matter how diversified your plan but somehow minimize it. its important also to have a cash on hand incase there is a sudden or emergency situation so you wont be empty handed if that happens.

Yeah but most of the forum members who are posting in this thread don have more than BTC1 in their wallets so its better to go all in with one investment. After LTC check the price of ETC. Its now at over BTC.0030. A few weeks ago it was only BTC.001.

lienfaye

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Quote from: KuromaYoichi on April 21, 2017, 11:07:36 PM

Hmm if you said it like that it sound's true, if you somehow all in in one thing and need money when your investment is down, then preapare to suffer a huge loss. But it's his fault in the first place if he invest all his money. He should left some in the first place for emergency purpose. Putting all your money in one basket is very risky, if it success then you go big, fail and you lose your asset.

Exactly, the risk of losing your money is high if you focus in just one thing. diversifying your investments is really important although you cant take away the risk no matter how diversified your plan but somehow minimize it. its important also to have a cash on hand incase there is a sudden or emergency situation so you wont be empty handed if that happens.

Oilacris

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Quote from: shinratensei_ on April 22, 2017, 08:58:25 AM

Quote from: Kevin77 on April 21, 2017, 05:05:40 PM

Quote from: Oilacris on April 21, 2017, 03:51:29 AM

Quote from: Doms on April 21, 2017, 03:09:13 AM

Diversification is always a good strategy if you are after preserving your assets while at the same time spreading the risks and making your money work in different ways. By putting your assets in different risk-reward ratio of investments, that minimizes the risk of losing everything all at once. More like playing it safe and being wise.

As a wise person you will surely think up on this thing first since you do know already the risk involved on any investment and diversification would really lessen the risk because its been partitioned already which means if one of them fails then recovery wont be too hard compared on putting up on one investment.

Other than recovery, the performances of various investments will be always different hence to make sure that we are not missing out any rapid paying investment opportunity,we must look for more number of opportunities rather than sticking with one as no one could foresee future so that pick the only high performing investment opportunity.

It should be considered as another recover, I mean if another investment gets a loss and other can be covered the loss caused by his profits. Don't put all of the things in a basket.
I was considering that as a play on the safe zone.
The market is unpredictable. So, we need backup by another side.

Having back-up on anything specially on investments is really advisable and yes market is really unpredictable which means it can crash anytime which causes for us to lose money and as you said the earning or profits of other investments will patch up the lose which means you are not totally broke and can recover not like on a single shut down of investment where did you put all your money they it maybe the last investment you would make because you will be afraid to to it again.

pinkflower

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But what if theres an altcoin good enough to go all in on? LTC was looking good to go all in on weeks ago only if you have an amount thats easily replaceable depending on your financial status. If youre a young student making BTC by joining signature campaigns then around BTC0.3 is good enough for you because you can replace it with your signature campaign.

If you invested in LTC weeks ago you might have doubled or tripled it already and more.

Silberman

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Quote from: OROBTC on April 12, 2017, 03:15:15 PM

...

I have long written that diversification is a very smart idea. No one can predict the future, etc. But discussed below is another reason not be 100% in ANY investment, at least for long. I ran into this argument at a gold blog.

Imagine that you are 100% invested, "All Inn", in gold. Even if the price of gold were to go way up, there is still a big risk that many don't see. Namely what happens if there is a big price drop JUST when the owner might NEED to sell (eg, an unexpected emergency). If our imaginary friend bought in at $1275 gold (approx. price today), and then price drops to $900 (Martin Armstrong predicts a sharp price drop like this, prior to a big price rise, a "slingshot" price rise after its initial drop).

And then, just at a bad time for the gold owner, he might need money (US dollars) to cover an unexpected $200,000 medical bill. And he if forced to sell his gold at a 25% loss to cover his bills... Ouch! It would hurt even more should gold then go to $2500 per ounce.

So, it is unwise to be All Inn on gold, even if we were to be very sure that $2500 gold is coming.

The above scenario would hold for Bitcoin as well, or anything else to be held long-term.

Some of us gold owners have a saying: "Protect the precious." That means keep some powder dry (CA$H on hand) for the unexpected.

That is why our money needs to be separated in different categories that way you can have a medical fund to cover some of your expenses if the need arises also that money serves as a buffer even if you need to sell something valuable to you you can take your time and take the best price on the market.

lionheart78

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Quote from: hase0278 on April 21, 2017, 11:02:22 PM

Quote from: Dmitry.Vastov on April 21, 2017, 10:04:21 PM

I've done this once and not a very clever move to do. Investing your money in only one crypto could lead to loss once it crashed. You should spread your investment. Not only on one but more crypto. Atleast it will cover your losses once one of your alt crashes. It also the depends on the alt you choose. Make sure you choose a good alt. Me i bought XRP, ETH and Dash. So far, it gives me good profit.

You should really read the OP more since this thread does not tell that going all in on a single investment is good but rather it states a reason, one good reason to why one should not go all in and having some cash left to spend for our lives while waiting for our investment to profit is a wise choice. I hope I don't offend you buy the way you replied I think you didn't read the OP well.

It is a no brainer to not touch our money for our daily needs, infact if you invest, you make sure that it is a "free" money. Either from accumulated savings or loaned money for that purpose. You will never touch the money that is allocated to your daily, monthly and recreational budget. If you do that you will really get into trouble financially.

deisik

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Quote from: OROBTC on April 21, 2017, 09:28:07 PM

Quote from: deisik on April 21, 2017, 03:11:13 AM

Quote from: pinkflower on April 21, 2017, 02:35:44 AM

I'll ask everyone.

Take the situation of more than 70% of the unique users of this forum, how much of them do you think have more than BTC1 in their wallets? Among those who have less than BTC1 of users in this thread alone which theres a lot, they keep saying that diversifying is good. Thats ridiculous its like managing 1 dollar and hope that it will become a million.

The question. Do you think they should diversify or go invest in 1 altcoin?

I would advise everyone to stay from altcoins altogether

Unless you certainly know what you are doing since "risk comes from not knowing what you are doing". Regarding 1 bitcoin specifically, you may stay with just bitcoins and dollars (if we talk about trading, obviously), but that doesn't mean that diversification ends with moving your funds into different assets. In fact, it only starts here. You should "diversify" your bitcoin to a few reliable exchanges (2-3) since any exchange can be hacked (or scam like what Cryptsy did), and this is the systemic risk which you simply can't get rid of if you intend to trade more or less regularly

Yeah, I would go along with that, unless you really know what you're doing, stay away from alts.

deisik, I would mildly disagree with one of your points in an above post. Even if you are at a fairly high-level at a company that you might work for, they can still perpetrate fraud with very few knowing. Example: Enron. Diversification can be done, actually advisable because of this "single company risk", which still exists even if you think you "know" the company well

I don't know much about Enron

Apart from the part that they doctored their financial reports and accounting. But if you don't work in some backward office at the other side of the world, such things (as rumors) quickly spread between company employees. Indeed, a typical clerk may not be the first to liquidate his portfolio, but he will certainly not be the last. In other words, we don't know anything for certain in this regard. In this case, we can only ask the former staff how it actually felt before the shit hit the fan

Topic: One Reason not to be "All Inn" on any Single Investment for Long (Read 3778 times)