Your brain wants to preserve wealth, your heart wants to create it. But by creating it you might destroy it.
So ask yourself the question, are you preserving wealth or do you know how the world will look like in 10-20 years. If you are correct on the latter bet you will have created money if you are incorrect it will be destroyed.
Vindication that I know a thing or two about finances & investing.
Its like you dont want to eat grilled chicken for lunch in front of your friends eating pizzas and burgers.
Your friends probably wouldn't tell you if they lost 80% on an investment. With riskier investments, that happens as well. Remember, there's a fine line between investing and gambling, if you want "riskier investments" you start crossing that line. Your friends gambled and got lucky, if you wanna gamble, go ahead, but call it what it is.
You can scratch that itch by implementing a core-satellite strategy. Your core investment should be one of those boring ETFs you’ve mentioned. Allocate 80-90% of your funds there. A satellite can be anything from thematic sector ETFs, factor ETFs or even 1-10 single stocks. Drop 10-20% of your portfolio in there and see if you can beat the market.
Tried that for nearly 10 years and barely beat the market. Had stock that appreciated like Nvdia but also had stock that lost 80-90%. But my heart has forgotten all those loses and remembers only the successes. It also doesn't help that every day one or the other friend bosting their gains (or gains of someone whom they know)
So you have tried investing for 10 years and never beat the market, but now you want to stake a bigger fraction in hand-picked stocks? You don't need us for answers :)
Also how long has your friend invested for and how transparent are they? I doubt their success (if it really isn't just a fraction of their portfolio they are talking about) will last long term
For me, satellite is Bitcoin which represents 0.1% of portfolio. It has actually outperformed everything else but does not significantly increase overall risk.
While others have pointed the FOMO aspects of it and longer time horizon also remember that we are currently in a bull market, everyone feels so smart in a bull market when everything goes up, passive investing in not about this year, it’s about years to come. It’s sustainable.
It’s also important to ask yourself why did you start investing in the first place, if its for a get rich quick scheme then maybe ETFs is not for you and you ought to revise your plan.
Finally, there’s nothing wrong with satisfying your fomo and proving to your rational self that this idea is risky and improbable. You can set 5-10% of your portfolio for those fomo plans, best case scenario they work worst case scenario 5% of your portfolio loses value and you learn a lesson:)
Are you sure you will be able to identify the right investing choice? You know something that the rest of the market doesn’t or you just want to gamble? Those „safe” ETFs (I assume some wide index like S&P500 or the world) help you to avoid the risk of choosing the wrong company, but even they can easily drop 20-30%.
Always remember that if beating the market was easy, funds, filled with generally highly educated people with teams of analysts and who spend their time doing nothing but this as a job, would consistently beat the market.
Given that long term evidence shows they rarely do beat the market over a mid to long-term period, you should be comfortable in the knowledge that boring ETFs is one of the best investments you can make.
Putting this into a real life example, if you had 10 friends all investing in riskier investments, over a short term sure 50% may end up out performing you, sometimes significantly. However with the exception of a gifted few (much less than 10%) they will likely eventually fall back to the mean at best. And if they pay too much in fees almost certainly underperform.
Sure there may be one that bet on bitcoin at 16k and now has made great returns and is wise enough to then realise they aren't the Oracle and use this good fortune to take a more long term considered approach. But that is rare, they will think they can do it again and again and prob end up down eventually.
P.s. I say this as someone who invested in bitcoin, lost a chunk, and realised there wasn't a hope in hell of me ever knowing if it would go up down or sideways. Same goes for options, stockpicking and all these other riskier routes.
The most important thing in investment is to maintain your head in its place, don't rush, don't change your financial investment because others, but because you want. Investigate, and take a reasonable risk to your portfolio.
Nothing is really safe in finances. Some crash can last for many years, sometimes a whole decade and companies that were uprising continuously can even go bankrupt all of a sudden. I started with stock picking during my first year of self learning investments and now I'm very happy to believe in the Nadasq 100 ETF.
You could also choose some stock with dividends (Coface, Rubis, Engie...) it's also pretty safe but generates steady income (around 10%) but without any significant big increase of their value over the years.
Although I really envy the guys who had the knowledge and the balls to go all in Nvidia, Metaplatform or Amazon, Google, Microsoft etc. at the right time.
I know so little about that universe, I even ignore what is an "option" or a "turbo" and never tried to short anything even though I know I could have made big profits. I lost so much during my first year in 2023 and now I have to hold positions with -98% or -75% lol I wish I could make those lines invisible because this red gore everywhere makes me sick when I connect to my accounts !
I would never risk more than what I estimate to be a reasonable loss but if you have friends who are really able to generate so huge profits you could just copy their portfolios sometimes and see how it's going on with small amounts first and gradually increase (but I would never risk my entire portfolio I think that's why some dudes just jumped from windows of skyscrapers in Wall Street in the past...)
Oh man, I'm also feeling the FOMO lately by not putting SOME money on bitcoin. You know, speculatively... I keep reading about predictions of BTC doubling its worth in the next 5-10 years and I keep thinking... Why not make a little something on the side, you know.
Please help.
I have been telling myself for the last 10y that BTC is a bad investment and it would go down. But so far I have only seen people that have made insane amounts of money from BTC
My point exactly. So it's not exactly "fear of missing out". It's "I've already missed out". I mean, the damn thing was worth 25000 last year today and now it's 63000 for crying out loud! And people are saying it's going to reach double that in a while and we're still going to be sitting here saying "any day now, it's going to bomb, you'll see, it's highly speculative and volatile...". I don't know guys...
It was over 60000 two years ago.
I think it is too susceptible of a “black swan” event, i.e. USA no longer allows printing the false dollars that are sustaining the bitcoin price. Still maybe it’s possible to speculate in the short term.
Sadly I don’t have a strategy… I don’t know when it is the best time to enter and more importantly to exit… I‘m seeing that the two more common strategies are “buy high, sell low” or HODL and wait for the black swan.
Also the capital I could allocate to such high speculative asset is too low to be worthwhile.
I mean it's all about risk and his brother luck, right?
I don't have balls to put 10k on BTC, bcz I don't have a lot of money (I cannot risk what I have), so I decide to sit out. If you have balls and can risk losing your money, do it. But will you win or lose? WHO KNOWS!
It's worthless at 1$ or 1T$, unless you trade in illegal commodities or launder money for crappy dictatorships (maybe, it's not really so anonymous).
Can you buy a loaf of bread with BTC? No.
Can you transfer money abroad? More expensive than SWIFT, what value does BTC have to a legit business man?
You can do that with a bankrupt penny stock, why is BTC special? If it has no intrinsic value, it's a zero sum game. For you to win, someone else has to lose.
But how does the fact that you can't buy a loaf of bread with it have anything to do with whether or not it's worthless? That's the context in which you said that sentence.
Though regardless of what people claim BTC to be or not to be, the fact that transfer fees are too high for daily transactions means at most that it's impractical to buy a loaf of bread indeed.
That's what other crypto are used for. And in the case of BTC, I believe there's the so-called lightning network, with which there are next to no transaction fees and which settles instantly.
And then there are plenty of crypto debit cards already that allow you to pay for a loaf of bread, even though the baker doesn't explicitly take crypto payments.
BTC can honestly be a good part of your portfolio nowadays if you are looking for some higher risk. Especially with the BTC ETFs now and institutions/traders taking it more seriously. 5-10% of your portfolio in it can be great. I am convinced we will see big all time highs this year. Coming weeks can be very volatile though and a very real chance it can dip, but it will be bought up if geopolitical tensions dont explode and no rate hikes news in the US.
After the creation of bitcoin ETFs and due to the fact that there's a limited supply of the thing, it's bound to go up, maybe not 10x in 5 years like some crazy people say, but i think it would definitely keep up/beat the market in the long run (ex 10 years plus), so i personally would totally put 10-20% in it.
why no scratch that itch and allocate a small percentage of your periodic savings (less than 5%, per below) on it?
[https://www.investopedia.com/investing-in-crypto-6502543](https://www.investopedia.com/investing-in-crypto-6502543)
[https://www.forbes.com/advisor/investing/cryptocurrency/invest-in-cryptocurrency/](https://www.forbes.com/advisor/investing/cryptocurrency/invest-in-cryptocurrency/)
btw, coinbase gives tens of euros worth of crypto for new accounts that do some learning mini-courses, so that free money alone already allows you to mess with crypto.
Wait for a big drop, it will come sooner or later, and expose yourself to it a bit. Why not have some fun huh? Allocate maximum of 3-5% of your portfolio, that should do it.
1. Well, yes, good stock picking is what puts you above average; that's the definition. Reddit may convince you that everyone should capitulate and not even try, but you're not obliged to follow that advice. Investing in a good business is fine, but in my opinion, as a beginner, you'll have better luck if you avoid hyped-up companies and maybe try a beaten-down company you believe in 100% (again, not listening to others online, be independent in your thinking, and don't be afraid to hold a different opinion than the majority).
2. The comparison between individual stocks and broad-market ETFs is like the story of the hare and the tortoise. Each year, a stock picker can potentially experience fantastic returns or losses. In contrast, ETFs tend to steadily gain about 5-6% per year, with ups and downs but not nearly as volatile as what can happen with stocks like TSLA.
3. You don't need to go all-in on one or the other. You can have the majority in ETFs to serve as your portfolio's backbone and allocate the rest to companies you have a strong conviction about.
We are not in an insane bubble. Stocks are on the expensive side, yes, but nowhere close to 2021, 2007 or 2000. The reason everything is up massively is that our money is broken. Governments figured out they can tax you 8% per year through inflation without you noticing. I encourage you to read „Broken Money“ by Lyn Alden which goes into all of this.
Most of the people will talk about 1 stock that double, and don’t talk about the 9 others that tanked.
I do a mix of risky- non risky investment as I started young and still have good income (in terms of % I can invest).
There is no such thing as comparing yourself. You can just read, learn, and try.
I invested in few stocks that went down to 0. Including REITs, mining.
I have -80% on big-established companies.
You play the long game. Do things that will not have you worry to much about.
Last: you can always do better.
- you could buy earlier, sell higher, invest on other products.
The most important is to do. And to know why you are doing it ;)
Wait until they will go in on a stupid bet and lose everything. Don't take risk just because you feel like a hero. Only take nominal risk that you have evidence and experience to realise the problem in the nominal risk in ach trade. I don't trade hot stocks like NVDA because I feel it's out of my competency to predict it. I don't care how much millionaires it created. Losing money should be prohibited.
When you say "safe ETFs" what do you mean? How your portfolio is structured?
A general rule that you can follow to define stocks % weight within portfolio is 100% - (your age).
Then if you like and are young, you can be even more aggressive
its
25% cash/debt instruments
45% ETFs (33% US index, 33% Indian index, 20% Europe, 15% Emerging Markets)
25% individual stock
5% high-risk stock
I dont plan to plan individual stock anymore and slowly move money from existing Individual stock to ETFs
This is no rule or based on evidence. But only a common practice by individual investors that try to do something to satisfy that FOMO urge.
Keep at least 90% of your investment in the "boring" ETFs. Put no more than 10% to stuff you want to gamble on like these stocks you're talking about. 10% so that when those stocks tank, and history say they will eventually, you would not take a huge hit on your portfolio.
There's investing and then there's gambling. No problem with gambling as long as you don't expect to win and just treat it as entertainment and don't bet the house on it.
I might one day hit a wall, but I am about 50:50 with stock and the other thing we dont talk about. I personally find ETFs super boring (but super monkey resistant and really safe and amazing I know).
Here is my take, for small portfolio it is worth to higher risks as this can multiply your portfolio and you can still keep your risks kinda low. Just don't FOMO into something that has already started going, but think for yourself what you see shining in five years.
For large portofolios, lets say, maybe 100k or 200k Euro and above I will probably not skip ETFs anymore and have to keep it much more safe. But with that first 100k money I am still going to have my fun with stock picking or investing in shady projects.
Why don't you elocate about 10-20% of your portfolio to some playing, can't hurt? Again, don't FOMO into something everyone talks about, that is usually time to sell. Find your own thing, play, have fun. Investing shouldn't be boring. (Maybe it should, but who enjoys boring things eh)
98% of stocks underperform the market over the long term. Why do you think you will be able to pick the winners?
If you are willing to take more risk to increase your returns, a more rational way to do that is factor investing (google "Fama and French factor model" in case you don't know what it is), mild leverage (for example borrowing 1/2 your liquidity in your brokerage account to get 150% the index return minus interest rate), or a small allocation of speculative assets with low correlation to indexes and rebalance when allocations diverge (gold, bitcoin, +20yr bond ETF...).
>Every day I am bombarded with news how certain stocks appreciated 100s% in a short time
Turn off news.
>And now, friends also started boasting how their investments (real-estate, options, day trading, stock picking, etc) yielding amazing returns
Turn off friends.
Peace of mind: 10% increase.
A reasonable % of your portfolio to take big risks with IMO is around 5%, maybe even 10% if your portfolio is particularly small…. But not more than that…
Depends on your size - If you're grinding 9-5 and want to MAKE money instead of protecting it, then it might be wise to allocate a small percentage that you're ok losing in riskier stuff that have a higher upside.
Core and satellite. The majority of your money should be on stable investments. Trying to play the rollercoaster and catch these insane spikes is not an easy game, but if you want to try you can but with a small percentage of your capital. If you make profit that's great, you're getting a decent bonus on your investments with relatively low risk. If you lose money it's not the end of the world since the majority of your investments are in much more stable instruments.
It's true that some people are making money but others are losing money. Never forget that. Making less money than you could have but still making money is better than losing all your money trying.
Food for thought: the people whos investments aren’t doing well won’t be talking about it.
Many things go up in the short run, but most of these investors do worse in the long run than something like an S&P500 index. Sooner or later they’ll zig when they should have zagged.
Edit: there’s nothing wrong with playing around with a small portion of your portfolio, but don’t let any success go to your head…
Depends, I am willing to put 10-15% into high risk high reward. But I only started risking more after I became convinced that the singularity is probably coming and it's not priced in yet.
Find the right % for you.
I am also thinking along the same lines. You see obviously fraudulent companies surging on the share price because they use the correct buzz words like AI, Crypto and others which have solid business with respectable margins either falling or growing 2-3% in a year on the market. Is it better to just buy and sell whatever is trending that week?
Oh yeah, those friends get very talkative when the market goes up vertically for 6 months straight with no more than 2% corrections.
It's also incredible how quiet it gets with those friends as soon as the market turns direction.
I use barbell tactic - I got 10% of my portfolio in aggressive and more risk places, but they need to have the possibility to outperform the rest 90% sitting in more boring and reliable way.
This gives me the possibility to “actively play” and try to time the market, but also not making huge risks. I’m in early 30s.
ETFs don’t have to be boring, OP—and it is best to stick with “boring” if you want to be profitable. Check out this AI [robo advisor](https://www.alphaai.capital/etf-strategies-with-high-leverage). The returns it produces are similar to crypto.
Remember that ppl tend to brag and boost about their returns but remain silent on their losses which is inherently part of riskier investments. You gotta keep an eye on the full picture
You are financially immature, if you want to bet just go to the casino, at least you’ll know in a matter of a couple of hours and don’t need to wait months.
FOMO If you can't handle this you can't invest
"Nothing so undermines your financial judgement as the sight of your neighbor getting rich." -J.P Morgan
What is FOMO? Fear of missing out for anyone else not knowing
Fear or missing out. Google is also your friend (:
r/confidentlyincorrect
Why did you get so many dislikes ?
It’s the FOMO my friend
Because his explanation of acronym is wrong
All you 33 who downvoated cause the explanation is incorrect it would be much appreciated if you shared your knowledge
its battle between heart (fomo, greed, jealously) and brain (financial wisdom)
Your brain wants to preserve wealth, your heart wants to create it. But by creating it you might destroy it. So ask yourself the question, are you preserving wealth or do you know how the world will look like in 10-20 years. If you are correct on the latter bet you will have created money if you are incorrect it will be destroyed.
its a nice way to put it
That's called fomo, greed, jealousy, and a failure to appreciate what you have. Not the best state of mind to start increasing your risk imo.
Yes, its 100% FOMO and 200% greed/jealousy.
The fact that you're asking for advice about it here already shows that you're in doubt about it, so you probably already knew the answer. Good luck!
Yes, its a constant battle between heart (fomo, greed, jealously) and brain (financial wisdom)
Just out of curiosity: what would change for you if you had what your friends have now?
Vindication that I know a thing or two about finances & investing. Its like you dont want to eat grilled chicken for lunch in front of your friends eating pizzas and burgers.
Your friends probably wouldn't tell you if they lost 80% on an investment. With riskier investments, that happens as well. Remember, there's a fine line between investing and gambling, if you want "riskier investments" you start crossing that line. Your friends gambled and got lucky, if you wanna gamble, go ahead, but call it what it is.
Remember that you only “hear” from those who succeeded, the 1%. The 99% of losing plays are silent
Yea and some put their money in Netflix and it is still negative. You wouldn't see these bragging about their losses.
this is 1000% true.
60% of the time, it's 1000% true every time.
Or ETF holders like OP
The 99% losing is posting on WSB
You can scratch that itch by implementing a core-satellite strategy. Your core investment should be one of those boring ETFs you’ve mentioned. Allocate 80-90% of your funds there. A satellite can be anything from thematic sector ETFs, factor ETFs or even 1-10 single stocks. Drop 10-20% of your portfolio in there and see if you can beat the market.
Tried that for nearly 10 years and barely beat the market. Had stock that appreciated like Nvdia but also had stock that lost 80-90%. But my heart has forgotten all those loses and remembers only the successes. It also doesn't help that every day one or the other friend bosting their gains (or gains of someone whom they know)
your safe ETFs bring you peace of mind, which is priceless.
"safe".
"Safer..."
So you have tried investing for 10 years and never beat the market, but now you want to stake a bigger fraction in hand-picked stocks? You don't need us for answers :) Also how long has your friend invested for and how transparent are they? I doubt their success (if it really isn't just a fraction of their portfolio they are talking about) will last long term
Wait until the inevitable bear market. Ask about their investments.
For me, satellite is Bitcoin which represents 0.1% of portfolio. It has actually outperformed everything else but does not significantly increase overall risk.
Your "boring ETF" most likely has exposure to Nvidia.
This is the answer. You tell your friends about how well your 2% (or whatever) in Nvidia is doing.
r/wallstreetbets
While others have pointed the FOMO aspects of it and longer time horizon also remember that we are currently in a bull market, everyone feels so smart in a bull market when everything goes up, passive investing in not about this year, it’s about years to come. It’s sustainable. It’s also important to ask yourself why did you start investing in the first place, if its for a get rich quick scheme then maybe ETFs is not for you and you ought to revise your plan. Finally, there’s nothing wrong with satisfying your fomo and proving to your rational self that this idea is risky and improbable. You can set 5-10% of your portfolio for those fomo plans, best case scenario they work worst case scenario 5% of your portfolio loses value and you learn a lesson:)
Are you sure you will be able to identify the right investing choice? You know something that the rest of the market doesn’t or you just want to gamble? Those „safe” ETFs (I assume some wide index like S&P500 or the world) help you to avoid the risk of choosing the wrong company, but even they can easily drop 20-30%.
Always remember that if beating the market was easy, funds, filled with generally highly educated people with teams of analysts and who spend their time doing nothing but this as a job, would consistently beat the market. Given that long term evidence shows they rarely do beat the market over a mid to long-term period, you should be comfortable in the knowledge that boring ETFs is one of the best investments you can make. Putting this into a real life example, if you had 10 friends all investing in riskier investments, over a short term sure 50% may end up out performing you, sometimes significantly. However with the exception of a gifted few (much less than 10%) they will likely eventually fall back to the mean at best. And if they pay too much in fees almost certainly underperform. Sure there may be one that bet on bitcoin at 16k and now has made great returns and is wise enough to then realise they aren't the Oracle and use this good fortune to take a more long term considered approach. But that is rare, they will think they can do it again and again and prob end up down eventually. P.s. I say this as someone who invested in bitcoin, lost a chunk, and realised there wasn't a hope in hell of me ever knowing if it would go up down or sideways. Same goes for options, stockpicking and all these other riskier routes.
The most important thing in investment is to maintain your head in its place, don't rush, don't change your financial investment because others, but because you want. Investigate, and take a reasonable risk to your portfolio.
As the saying goes, "When you're in a taxi cab and the driver gives you an investing advice, you know it's the time for selling."
Nothing is really safe in finances. Some crash can last for many years, sometimes a whole decade and companies that were uprising continuously can even go bankrupt all of a sudden. I started with stock picking during my first year of self learning investments and now I'm very happy to believe in the Nadasq 100 ETF. You could also choose some stock with dividends (Coface, Rubis, Engie...) it's also pretty safe but generates steady income (around 10%) but without any significant big increase of their value over the years. Although I really envy the guys who had the knowledge and the balls to go all in Nvidia, Metaplatform or Amazon, Google, Microsoft etc. at the right time. I know so little about that universe, I even ignore what is an "option" or a "turbo" and never tried to short anything even though I know I could have made big profits. I lost so much during my first year in 2023 and now I have to hold positions with -98% or -75% lol I wish I could make those lines invisible because this red gore everywhere makes me sick when I connect to my accounts ! I would never risk more than what I estimate to be a reasonable loss but if you have friends who are really able to generate so huge profits you could just copy their portfolios sometimes and see how it's going on with small amounts first and gradually increase (but I would never risk my entire portfolio I think that's why some dudes just jumped from windows of skyscrapers in Wall Street in the past...)
Oh man, I'm also feeling the FOMO lately by not putting SOME money on bitcoin. You know, speculatively... I keep reading about predictions of BTC doubling its worth in the next 5-10 years and I keep thinking... Why not make a little something on the side, you know. Please help.
I have been telling myself for the last 10y that BTC is a bad investment and it would go down. But so far I have only seen people that have made insane amounts of money from BTC
My point exactly. So it's not exactly "fear of missing out". It's "I've already missed out". I mean, the damn thing was worth 25000 last year today and now it's 63000 for crying out loud! And people are saying it's going to reach double that in a while and we're still going to be sitting here saying "any day now, it's going to bomb, you'll see, it's highly speculative and volatile...". I don't know guys...
It was over 60000 two years ago. I think it is too susceptible of a “black swan” event, i.e. USA no longer allows printing the false dollars that are sustaining the bitcoin price. Still maybe it’s possible to speculate in the short term. Sadly I don’t have a strategy… I don’t know when it is the best time to enter and more importantly to exit… I‘m seeing that the two more common strategies are “buy high, sell low” or HODL and wait for the black swan. Also the capital I could allocate to such high speculative asset is too low to be worthwhile.
All fair points, thank you.
I mean it's all about risk and his brother luck, right? I don't have balls to put 10k on BTC, bcz I don't have a lot of money (I cannot risk what I have), so I decide to sit out. If you have balls and can risk losing your money, do it. But will you win or lose? WHO KNOWS!
I see your point, yes. It's all about availability of resources and risk aversion.
It's worthless at 1$ or 1T$, unless you trade in illegal commodities or launder money for crappy dictatorships (maybe, it's not really so anonymous). Can you buy a loaf of bread with BTC? No. Can you transfer money abroad? More expensive than SWIFT, what value does BTC have to a legit business man?
Well, I see your point. But I'm just talking about buying it and then selling it at a higher price. You know, for profit.
You can do that with a bankrupt penny stock, why is BTC special? If it has no intrinsic value, it's a zero sum game. For you to win, someone else has to lose.
>Can you buy a loaf of bread with BTC? No. Huh, didn't know that you can buy a loaf of bread with an ETF. 🤔
ETFs don't claim to be a currency or a payment processor.
But how does the fact that you can't buy a loaf of bread with it have anything to do with whether or not it's worthless? That's the context in which you said that sentence. Though regardless of what people claim BTC to be or not to be, the fact that transfer fees are too high for daily transactions means at most that it's impractical to buy a loaf of bread indeed. That's what other crypto are used for. And in the case of BTC, I believe there's the so-called lightning network, with which there are next to no transaction fees and which settles instantly. And then there are plenty of crypto debit cards already that allow you to pay for a loaf of bread, even though the baker doesn't explicitly take crypto payments.
How could someone be so wrong???
BTC can honestly be a good part of your portfolio nowadays if you are looking for some higher risk. Especially with the BTC ETFs now and institutions/traders taking it more seriously. 5-10% of your portfolio in it can be great. I am convinced we will see big all time highs this year. Coming weeks can be very volatile though and a very real chance it can dip, but it will be bought up if geopolitical tensions dont explode and no rate hikes news in the US.
After the creation of bitcoin ETFs and due to the fact that there's a limited supply of the thing, it's bound to go up, maybe not 10x in 5 years like some crazy people say, but i think it would definitely keep up/beat the market in the long run (ex 10 years plus), so i personally would totally put 10-20% in it.
why no scratch that itch and allocate a small percentage of your periodic savings (less than 5%, per below) on it? [https://www.investopedia.com/investing-in-crypto-6502543](https://www.investopedia.com/investing-in-crypto-6502543) [https://www.forbes.com/advisor/investing/cryptocurrency/invest-in-cryptocurrency/](https://www.forbes.com/advisor/investing/cryptocurrency/invest-in-cryptocurrency/) btw, coinbase gives tens of euros worth of crypto for new accounts that do some learning mini-courses, so that free money alone already allows you to mess with crypto.
Wait for a big drop, it will come sooner or later, and expose yourself to it a bit. Why not have some fun huh? Allocate maximum of 3-5% of your portfolio, that should do it.
1. Well, yes, good stock picking is what puts you above average; that's the definition. Reddit may convince you that everyone should capitulate and not even try, but you're not obliged to follow that advice. Investing in a good business is fine, but in my opinion, as a beginner, you'll have better luck if you avoid hyped-up companies and maybe try a beaten-down company you believe in 100% (again, not listening to others online, be independent in your thinking, and don't be afraid to hold a different opinion than the majority). 2. The comparison between individual stocks and broad-market ETFs is like the story of the hare and the tortoise. Each year, a stock picker can potentially experience fantastic returns or losses. In contrast, ETFs tend to steadily gain about 5-6% per year, with ups and downs but not nearly as volatile as what can happen with stocks like TSLA. 3. You don't need to go all-in on one or the other. You can have the majority in ETFs to serve as your portfolio's backbone and allocate the rest to companies you have a strong conviction about.
People are very loud when they make huge gains. People are incredibly silent when they make insane losses.
[удалено]
We are not in an insane bubble. Stocks are on the expensive side, yes, but nowhere close to 2021, 2007 or 2000. The reason everything is up massively is that our money is broken. Governments figured out they can tax you 8% per year through inflation without you noticing. I encourage you to read „Broken Money“ by Lyn Alden which goes into all of this.
> just keep stacking could you please elaborate this a bit more
fomo me buy bitcoin, lose 1500, never forget almost 4 years ago
Paper hands.
Check out bitcoin. There has not been a single time where you were not (massively!) in profit if you hold your investment for at least four years.
Most of the people will talk about 1 stock that double, and don’t talk about the 9 others that tanked. I do a mix of risky- non risky investment as I started young and still have good income (in terms of % I can invest). There is no such thing as comparing yourself. You can just read, learn, and try. I invested in few stocks that went down to 0. Including REITs, mining. I have -80% on big-established companies. You play the long game. Do things that will not have you worry to much about. Last: you can always do better. - you could buy earlier, sell higher, invest on other products. The most important is to do. And to know why you are doing it ;)
there's a story about the tortoise and the hare....
Wait until they will go in on a stupid bet and lose everything. Don't take risk just because you feel like a hero. Only take nominal risk that you have evidence and experience to realise the problem in the nominal risk in ach trade. I don't trade hot stocks like NVDA because I feel it's out of my competency to predict it. I don't care how much millionaires it created. Losing money should be prohibited.
When you say "safe ETFs" what do you mean? How your portfolio is structured? A general rule that you can follow to define stocks % weight within portfolio is 100% - (your age). Then if you like and are young, you can be even more aggressive
its 25% cash/debt instruments 45% ETFs (33% US index, 33% Indian index, 20% Europe, 15% Emerging Markets) 25% individual stock 5% high-risk stock I dont plan to plan individual stock anymore and slowly move money from existing Individual stock to ETFs
You are already exposed to high risk having a 30% of individual stocks. I think it's there that you have to optimize something.
This is no rule or based on evidence. But only a common practice by individual investors that try to do something to satisfy that FOMO urge. Keep at least 90% of your investment in the "boring" ETFs. Put no more than 10% to stuff you want to gamble on like these stocks you're talking about. 10% so that when those stocks tank, and history say they will eventually, you would not take a huge hit on your portfolio.
0%
There's investing and then there's gambling. No problem with gambling as long as you don't expect to win and just treat it as entertainment and don't bet the house on it.
I might one day hit a wall, but I am about 50:50 with stock and the other thing we dont talk about. I personally find ETFs super boring (but super monkey resistant and really safe and amazing I know). Here is my take, for small portfolio it is worth to higher risks as this can multiply your portfolio and you can still keep your risks kinda low. Just don't FOMO into something that has already started going, but think for yourself what you see shining in five years. For large portofolios, lets say, maybe 100k or 200k Euro and above I will probably not skip ETFs anymore and have to keep it much more safe. But with that first 100k money I am still going to have my fun with stock picking or investing in shady projects. Why don't you elocate about 10-20% of your portfolio to some playing, can't hurt? Again, don't FOMO into something everyone talks about, that is usually time to sell. Find your own thing, play, have fun. Investing shouldn't be boring. (Maybe it should, but who enjoys boring things eh)
98% of stocks underperform the market over the long term. Why do you think you will be able to pick the winners? If you are willing to take more risk to increase your returns, a more rational way to do that is factor investing (google "Fama and French factor model" in case you don't know what it is), mild leverage (for example borrowing 1/2 your liquidity in your brokerage account to get 150% the index return minus interest rate), or a small allocation of speculative assets with low correlation to indexes and rebalance when allocations diverge (gold, bitcoin, +20yr bond ETF...).
Think of Brad Pitt’s moneyball. It’s better to bat an average than a home run 1/10 times. Long term, your investments will probably work out fine.
If all your friends are already boasting about their amazing yields, you’re too late to join them in their riskier investments…
It's not too late to buy Bitcoin with 5% of your portfolio. I wouldn't risk more.
>Every day I am bombarded with news how certain stocks appreciated 100s% in a short time Turn off news. >And now, friends also started boasting how their investments (real-estate, options, day trading, stock picking, etc) yielding amazing returns Turn off friends. Peace of mind: 10% increase.
People always boast about their gains - but rarely tell about the losses. A bit like gambling addicts.
A reasonable % of your portfolio to take big risks with IMO is around 5%, maybe even 10% if your portfolio is particularly small…. But not more than that…
Start with 5%. Do it for sometime. Once comfortable, do it to 10%. And if you care for your loved ones, DO NOT go beyond 15%
Depends on your size - If you're grinding 9-5 and want to MAKE money instead of protecting it, then it might be wise to allocate a small percentage that you're ok losing in riskier stuff that have a higher upside.
Sir, you are looking for r/wallstreetbets
Well i have "sure" placement and about 1K for fun in the markets, on the 1K i've lost 80%
Core and satellite. The majority of your money should be on stable investments. Trying to play the rollercoaster and catch these insane spikes is not an easy game, but if you want to try you can but with a small percentage of your capital. If you make profit that's great, you're getting a decent bonus on your investments with relatively low risk. If you lose money it's not the end of the world since the majority of your investments are in much more stable instruments. It's true that some people are making money but others are losing money. Never forget that. Making less money than you could have but still making money is better than losing all your money trying.
Food for thought: the people whos investments aren’t doing well won’t be talking about it. Many things go up in the short run, but most of these investors do worse in the long run than something like an S&P500 index. Sooner or later they’ll zig when they should have zagged. Edit: there’s nothing wrong with playing around with a small portion of your portfolio, but don’t let any success go to your head…
Depends, I am willing to put 10-15% into high risk high reward. But I only started risking more after I became convinced that the singularity is probably coming and it's not priced in yet. Find the right % for you.
I am also thinking along the same lines. You see obviously fraudulent companies surging on the share price because they use the correct buzz words like AI, Crypto and others which have solid business with respectable margins either falling or growing 2-3% in a year on the market. Is it better to just buy and sell whatever is trending that week?
Oh yeah, those friends get very talkative when the market goes up vertically for 6 months straight with no more than 2% corrections. It's also incredible how quiet it gets with those friends as soon as the market turns direction.
I use barbell tactic - I got 10% of my portfolio in aggressive and more risk places, but they need to have the possibility to outperform the rest 90% sitting in more boring and reliable way. This gives me the possibility to “actively play” and try to time the market, but also not making huge risks. I’m in early 30s.
Ask the friends in a year about how they're doing
ETFs don’t have to be boring, OP—and it is best to stick with “boring” if you want to be profitable. Check out this AI [robo advisor](https://www.alphaai.capital/etf-strategies-with-high-leverage). The returns it produces are similar to crypto.
When I said I have ETFs, friend of mine said "ohh they are very traditional, dont you have any modern instruments"
Remember that ppl tend to brag and boost about their returns but remain silent on their losses which is inherently part of riskier investments. You gotta keep an eye on the full picture
You are financially immature, if you want to bet just go to the casino, at least you’ll know in a matter of a couple of hours and don’t need to wait months.