AMA about finance, investing, stocks, and derivatives

[Litodude]

Before you ask me basic questions, look at this:



I can get into theory, mathematical analysis, fundamental analysis, intrinsic risk, leverage, volatility, hedging, macroeconomic concepts, etc.

AMA

[Rebirth0]

Explain to me why when I purchased VALE at $20 per share, it dropped to $12 in a couple months and has not even started to show an upward trend. I lost 40% in that


Nah its ok I made money off COP and HPQ so I've made a profit this year.

I can probably contribute to this thread as well if needed

[L.B.D.D]

what can i do to increase my chances of being born into a wealthy family

[Litodude]

"Vale S.A. is a Brazilian multinational diversified metals and mining corporation-"

Bad investment. Great gamble.

[Zapmeister]

if i hold my bitcoins for the next 5-10 years or so and then sell them will i be able to live the rest of my life in luxurious retirement? if not, how early should i sell them?

[Rebirth0]

How many bitcoins are we talking about?

Obviously I wouldn't expect that comment to be serious as I don't think you have $1,000,000+ worth of bitcoins right now.

But there are starting to be methods where people can start using bitcoins to pay for things in person just like you would with paypal, google wallet, or in the near future like a debit card. As this becomes more of a public currency, there may start to be attempts to regulate the currency, which could drive down the exchange rate. I think this is a couple years away though, and in the short term, the bitcoin should gain in value.

[Buta-san]

Originally Posted by L.B.D.D

what can i do to increase my chances of being born into a wealthy family

Unfortunately you have no chance, but you can marry a rich person and have your kids be born by a rich family. Don't pity yourself, be the one to start the generation.

[choof]

BTCs are still very speculative - they've only been in existence for less than 5 years. If you haven't seen what happened back in 2013, there was a huge run-up (1BTC = 1.3k USD), and it crashed soon after. The top sticky post in the /r/bitcoin subreddit was a suicide hotline.
With that said, I don't suggest investing in BTC, but I do agree with a minority of people that say cryptocurrency is the future. I can talk more in depth about how I believe current global economic fragility promotes BTC in general, but the gist of the reason why I will be buying BTC is to hedge the rest of my portfolio. To hedge is to limit risk of exposure, and in this particular scenario, it's backward of conventional wisdom but I have a good reasoning for it.
BTC is (fluctuating) 15% of my portfolio, and will not be adding any more funds to that currency.

from ya boi ritoduDe

[Zapmeister]

yup the last time i asked you (litodude) about btc that was when they had just broken $300 and you suggested against buying them just before they skyrocketed to $1200.

i really love the idea behind cryptocurrencies as an anonymised alternative to fiat and would like them to be more widespread, but is merchant adoption really a good thing for bitcoin though, at least in the short-medium term? i mean if a business accepts bitcoin then they'll probably just dump the coins that they received on the market which could be a factor in why this is happening:



p.s. scotland didn't declare independence this morning causing the £/$ exchange rate to go up. i'm tempted to sell my btc for £ and buy back when £/$ = 1.7 or something, but seeing as bitcoins are being enormous dickheads right now, this move isn't so clear-cut. should i do it?

[Litodude]

You forget to mention the fact of BTC dropping 80% in value in a span of a month. 400% gain in your money means nothing if you're losing 360% of your starting. One anecdotal miscalculation of datum quite honestly means shit all to me; I expressed my opinion on it and gave justification.

Buy and sell on news as much as you like, I don't really care what you do, it's your money.

[Litodude]

I initiated a position in BTC using ANXBTC (https://anxbtc.com) last week:

10.44 BTC @ $356.515 USD. This is my hedge against current dominant currencies. I have 1.1k liquid in the account for surprise dips should they occur, and gives me a little bit of flexibility should I wish to buy or sell.

Why ANX? Well, 1) Located in HK, 2) HSBC, 3) Secure, uses 2-FA 4) Moving funds was a breeze. They also have an 'advanced' feature which redirects you to their ANXPro website which shows more detail in price movement.

[Zapmeister]

Originally Posted by Litodude

I initiated a position in BTC using ANXBTC (https://anxbtc.com) last week:

ok uh

is it just me or are the prices there insanely low enough for arbitrage to be a thing

am i seriously missing something

[Litodude]

you're missing commission fees, transfer times, and wire transfer fees