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Topic: One Reason not to be "All Inn" on any Single Investment for Long - page 5. (Read 3778 times)

hero member
Activity: 2128
Merit: 520
Well one thing is for sure that you are afraid of what you are investing in. Can you imagine the opportunity that will be lost if you have diversified your portfolio? Don't get me wrong on this one but if you spread your money to a lot of investment you just lessen the risk but did not maximize your profit also you added a lot of things to be manage by you. I still believe that you can always go " all in" in the investments you are sure will pay you the most. Just my two cents.
you have some point from there mate, if you are really sure regarding to your investment you can do an all in, the thing is how sure are you with that particular investment? that's how things changed up placing your investment, splitting it up to lessen the risk and also to try some stakes we aren't sure what crypto will bring us so we just understand the movements and try to manage everything.
hero member
Activity: 518
Merit: 500
My reason not to be all inn on any single investments for long time strategy is high risk losing money (include on digital coins),
in all of instrument of investments always there are risk must be taken by investors
the good investors always calculate about risk in investments, they don't just think about the profit.
hero member
Activity: 1680
Merit: 655
Well one thing is for sure that you are afraid of what you are investing in. Can you imagine the opportunity that will be lost if you have diversified your portfolio? Don't get me wrong on this one but if you spread your money to a lot of investment you just lessen the risk but did not maximize your profit also you added a lot of things to be manage by you. I still believe that you can always go " all in" in the investments you are sure will pay you the most. Just my two cents.
hero member
Activity: 910
Merit: 501
Nature itself is unpredictable and that applies to business too. It's the reason the expression,"Don't put all your eggs in one basket."  will forever remain the wisest saying in busines for me

I guess there is a lot more than just not putting "all your eggs in one basket"

Just blindly diversifying your investments may not decrease your total risk but actually increase it (read mean more losses). That means that you would be better off if you didn't diversify your investments at all. Just repeating the same mantra again and again will most likely lead you nowhere on its own. You should first understand how assets in your "baskets" are correlated against each other, and how they will behave under economic stress since such diversification seems to be primarily directed at preserving value (for the case when your proverbial basket gets crushed)

I think that would something for professional investors.
For an average person it's asked a little too much to analyse how different investments behave when the market developes into a certain direction.
An average person simply has to split up to keep his risks at a low level

It is like technical analysis

The more intricate and complicated it becomes, the more you expect it from it. But in most cases this complexity doesn't add anything to your profits (though it allows you to use buzz words like Elliot waves and similar nonsense). If you randomly split up your assets, how do you know that your risks did in fact reduce? What if all your assets start collapsing simultaneously, as it often happens?

I think that the investment decision of an average person is random.
So in the end, it ads up to the hope that a lot of random decisions lead to an increase of your fortune, when the superior market is growing. And in general, markets usually grow.
When you pick just one fraction of the market, that fraction alone may decline.

legendary
Activity: 3458
Merit: 1280
English ⬄ Russian Translation Services
Nature itself is unpredictable and that applies to business too. It's the reason the expression,"Don't put all your eggs in one basket."  will forever remain the wisest saying in busines for me

I guess there is a lot more than just not putting "all your eggs in one basket"

Just blindly diversifying your investments may not decrease your total risk but actually increase it (read mean more losses). That means that you would be better off if you didn't diversify your investments at all. Just repeating the same mantra again and again will most likely lead you nowhere on its own. You should first understand how assets in your "baskets" are correlated against each other, and how they will behave under economic stress since such diversification seems to be primarily directed at preserving value (for the case when your proverbial basket gets crushed)

I think that would something for professional investors.
For an average person it's asked a little too much to analyse how different investments behave when the market developes into a certain direction.
An average person simply has to split up to keep his risks at a low level

It is like technical analysis

The more intricate and complicated it becomes, the more you expect it from it. But in most cases this complexity doesn't add anything to your profits (though it allows you to use buzz words like Elliot waves and similar nonsense). If you randomly split up your assets, how do you know that your risks did in fact reduce? What if all your assets start collapsing simultaneously, as it often happens?
sr. member
Activity: 742
Merit: 329
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Yeah the first thing that I learned when bitcoin was first introduce to me was never to put all of your eggs in one basket,
And also invest only what you can afford to lose so I never tried to invest all of my money in just one investment.
hero member
Activity: 910
Merit: 501
Nature itself is unpredictable and that applies to business too. It's the reason the expression,"Don't put all your eggs in one basket."  will forever remain the wisest saying in busines for me

I guess there is a lot more than just not putting "all your eggs in one basket"

Just blindly diversifying your investments may not decrease your total risk but actually increase it (read mean more losses). That means that you would be better off if you didn't diversify your investments at all. Just repeating the same mantra again and again will most likely lead you nowhere on its own. You should first understand how assets in your "baskets" are correlated against each other, and how they will behave under economic stress since such diversification seems to be primarily directed at preserving value (for the case when your proverbial basket gets crushed)

I think that would something for professional investors.
For an average person it's asked a little too much to analyse how different investments behave when the market developes into a certain direction.
An average person simply has to split up to keep his risks at a low level.

legendary
Activity: 3458
Merit: 1280
English ⬄ Russian Translation Services
Nature itself is unpredictable and that applies to business too. It's the reason the expression,"Don't put all your eggs in one basket."  will forever remain the wisest saying in busines for me

I guess there is a lot more than just not putting "all your eggs in one basket"

Just blindly diversifying your investments may not decrease your total risk but actually increase it (read mean more losses). That means that you would be better off if you didn't diversify your investments at all. Just repeating the same mantra again and again will most likely lead you nowhere on its own. You should first understand how assets in your "baskets" are correlated against each other, and how they will behave under economic stress since such diversification seems to be primarily directed at preserving value (for the case when your proverbial basket gets crushed)
legendary
Activity: 2114
Merit: 1292
There is trouble abrewing
but remember that sometimes going all in is what it takes to change your life. i am not suggesting it but that is something to consider. it is a high risk, high reward type of situation. you find some good opportunity and do your research and analyze all the risks. if you find the reward worth the risk, then going all in can change your whole life for the better.

imagine buying 1BTC one year ago at $400 versus buying 100BTC the same time which is investing $400 versus investing $40,000 which is kind of a all in.
the first investment makes you $800 profit and your money is a total of $1,200
but the second investment makes you $80,000 profit your total into $120,000
hero member
Activity: 994
Merit: 544
Well experienced traders know this stuff and there is no need to lecture them about this. But your topic is quite useful to the newbies who are very excited and emotional about trading and investing. Diversification is a good principle in trading since it will lessen your risk but also lesser  income. But for some risk takers diversification is not necessary since even before they placed their capital on such item they already are ready to take the risk and willing to earn big.
hero member
Activity: 1764
Merit: 584
Seems our old folks already had it figured out when they tell us to "don't keep all the eggs in one basket,". Sure, going all in might get you a larger profit if ever, but you could also lose a lot if things go wrong. I agree with OP in that it's possible that you might need the money just at a time when the value is dropping. And this is why we still have fiat. It's just more liquid than precious metals.

I believe this go hand in hand with common sense stuff like having a separate emergency fund as well as a living fund so you don't have to bother touching your other investments. Also, you shouldn't invest money you can't afford to lose anyway. If you're buying gold or bitcoin, I assume you already have some money stored for your regular and unexpected expenses.
sr. member
Activity: 2338
Merit: 338
Going all in in just single investment for a long run is not a good idea because it is very risky because you are not trying to make your money in different investment as flexible as you can because if you are just putting it on one then you can consider yourself in danger because you don't have any back up if the investment will experience bankruptcy.
copper member
Activity: 2828
Merit: 4065
Top Crypto Casino
We can only take a guess and most often than not we make bad business calls. So, it's advisable not to throw in all one's fund into one investment. Diversification is key in business.

There is no place for guessing when it's about investing Smiley. Banks, for exemple, don't make bets about their investments. Thet have drastics studies about markets they plan to invest and make strict due dilligence. But I agree. Diversity is a basic while building any portofolio simply because the financial markets do not evolve in the same way, each sector has its logic of progress and can be influenced by external events independently. Rarely you will see big investors, banks, or investment funds putting all theirs funds in only one plan. So, in my opinion, It allows to limit the risks and the impact of a decline in a sector on the overall portfolio. At the same time, it also allows to increase the performance potential of the portfolio
legendary
Activity: 2716
Merit: 1225
Once a man, twice a child!
Nature itself is unpredictable and that applies to business too. It's the reason the expression,"Don't put all your eggs in one basket."  will forever remain the wisest saying in busines for me.

Yes, sometimes the temptation to go all out on a particular investment because of its juicy nature may be there. But as humans, no one can correctly  predict the future. We can only take a guess and most often than not we make bad business calls. So, it's advisable not to throw in all one's fund into one investment. Diversification is key in business.
legendary
Activity: 3080
Merit: 1353
...

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.

Very well said mate. When I was starting on buying stocks, this is the first thing I've learn. You have to spread your investment around so you will not be caught your pants down when the scenario you mentioned above will happened. This strategy is complex to some, but it is simply about spreading your portfolio across several assets like stocks and bond, mutual funds and others. Diversification can also reduce the risk and volatility in your portfolio, But you also need to remember to also hold cash as well, just in case of certain emergencies.

Diversification: "Place your eggs in different baskets."
legendary
Activity: 1372
Merit: 1032
All I know is that I know nothing.
It depends. If youre a person who doesnt have enough money to make diversifying make sense then going all in in one stock or one altcoin and hope for the best is your only ticket out and create a meaningful amount in your life.
Huh I think that people should have money and then do research and have at least 2 or 3 investments.
If you have only money to invest in one place, I suggest you do not knife it, wait until you have the money to make 2 or more investments.

if you don't have enough money you can not diversify there is no point in that since you are not getting any benefits out of it. so it is best to go "all in" in one thing that you think has the best to offer you in sense of profit and stick to it.

and "waiting around to make more money then invest" is a terrible advice in my opinion. you can use that "wait around" time to double what you already have.
legendary
Activity: 3038
Merit: 1100
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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

You basically confirm what I'm repeatedly telling myself to the public here

Namely, that hoarding gold makes sense only for the rich and by rich I refer here to those who are already rich well beyond the necessity of looking for cash in case of emergency. Gold is not an investment asset in the sense of using it as a means of multiplying your capital, i.e. making more money out of money. Gold is there to preserve wealth when you already have that wealth and don't trouble yourself with questions of procuring money for paying medical bills

I agree. Unfortunately many people do not understand this, they can probably feel offended

It depends. If youre a person who doesnt have enough money to make diversifying make sense then going all in in one stock or one altcoin and hope for the best is your only ticket out and create a meaningful amount in your life.

Huh I think that people should have money and then do research and have at least 2 or 3 investments.

If you have only money to invest in one place, I suggest you do not knife it, wait until you have the money to make 2 or more investments.
sr. member
Activity: 868
Merit: 259
It depends. If youre a person who doesnt have enough money to make diversifying make sense then going all in in one stock or one altcoin and hope for the best is your only ticket out and create a meaningful amount in your life.

Diversifying for the sake of it without thinking of your situation is stupid.
hero member
Activity: 770
Merit: 500
Bazinga!
there is a simple solution for you all in scenario:
invest the money you don't need and can afford to invest.

all of us usually have some funds for emergency that we don't touch. and it is always best to invest some additional money you have which is just lying around and does nothing.

all in, diversify,... are for that money not all your lifesavings. in which case i think your argument doesn't apply. because you invest and you never get to a point where you abosolutely need the money so you can only sell when the time is right.
legendary
Activity: 3458
Merit: 1280
English ⬄ Russian Translation Services
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

You basically confirm what I'm repeatedly telling myself to the public here

Namely, that hoarding gold makes sense only for the rich and by rich I refer here to those who are already rich well beyond the necessity of looking for cash in case of emergency. Gold is not an investment asset in the sense of using it as a means of multiplying your capital, i.e. making more money out of money. Gold is there to preserve wealth when you already have that wealth and don't trouble yourself with questions of procuring money for paying medical bills
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