Post
Topic
Board Altcoin Discussion
Re: Ryan Pumper: Pumpers Picks (Updated Daily)
by
Dr. Coin
on 18/12/2014, 21:04:06 UTC
Hi Santa,
Let me explain my thoughts.

Unlike stocks/forex, cryptos have no true, real-world demand. So, based off of news is no way to really invest in a crypto with any true certainty, are your news sources twitter? lol So, using technical analysis to see if a coin is over-sold, is just keeping a status on what the big boys are doing, but its manipulation its not a true market, so the technical analysis, only goes so far.

Given this, why invest 100% of your portfolio in some coin that can very easily go down 80% or go up 50%...

Hedging is a very basic strategy that should be used in trading. Off-set risk by investing in another coin. Ideally, the best way to hedge is to find coins that have inverse relationships...since there is no true demand even this is impossible to find. Derivatives in coins are not legit yet either.

So, what if you invest 100% in a coin that goes down 40%...that loss is huge...but even if you had gone 50/50, one goes down one goes up, then you off-set your risk a little, and in this scenario, which is very common, the hedging paid off.

If you want to try to make big bucks (triple your portfolio) overnight, sure try investing 100% of your portfolio see how that goes.

Or..you can really learn how to trade and triple you money in 6 weeks in this market with much less risk, while avoiding major downfalls that will set you back months.