Traders and Investors

[FHII]

Yes, in fact I was hoodwinked about six months ago with a certain cryptocurrency investment. I was told its value would increase exponentially coming up, and it was being promoted as the next Ethereum. Half a year has passed, and this crypto coin lost half the value I bought it as earlier, but it’s recouped a bit. Fortunately I only invested $400 in it, so I didn’t lose much.

I’m thinking I fell for a pump-and-dump scheme. Watch out for these. It’s best to stick to index funds and reliable mutual funds, in my opinion.

The thing I dislike about cryptocurrency is that despite my research I have no idea exactly what it is I am investing in.

When I buy a oil, I know. Gold, I know... Target, Walmart, Amazon... They are retail and that I know... Some others here like copper, lithium and construction companies... Again, I know what it is and what they do to make money. Even Berkshire Hathaway and JP Morgan (while being very diversified and pretty complicated), I can figure out what they are doing to make money. My favorite is bonds and ETFs. Those can be complicated but you can read their plan and understand how they intend to make money. Bonds are loans... ETFs are packaged "variety packs" with a lot of different companies which you can see in the report.

But crypto... I've never been able to understand it. Granted, I am new and even as a newbie I am probably behind average investing intelligence, but I am not going to invest in something I can't comprehend.

Except The Lord. I don't comprehend everything about him, but I understand him enough to trust him. If he tells me to invest in crypto, I'll do it... But until then...

 

[Moonstone Eterni]

The thing I dislike about cryptocurrency is that despite my research I have no idea exactly what it is I am investing in. When I buy a oil, I know. Gold, I know... Target, Walmart, Amazon... They are retail and that I know... Some others here like copper, lithium and construction companies... Again, I know what it is and what they do to make money. Even Berkshire Hathaway and JP Morgan (while being very diversified and pretty

You make an excellent point: Cryptocurrency is so volatile that investing in it is every bit as “wise” as investing tens of thousands of dollars in a roulette wheel spin. It could land on the color you selected, and you instantly made a ton of money—or it could land on the other color, and you lose everything just as quick.

My opinion is that index funds are the best investment. Their portfolios track indexes like the S&P 500 or Nasdaq, all of which are safe, stable investments with high returns (like a steady 10% or 11% a year). You won’t get incredibly rich with them, but you can still make good money with enough invested.

 

[FHII]

You make an excellent point: Cryptocurrency is so volatile that investing in it is every bit as “wise” as investing tens of thousands of dollars in a roulette wheel spin. It could land on the color you selected, and you instantly made a ton of money—or it could land on the other color, and you lose everything just as quick.

My opinion is that index funds are the best investment. Their portfolios track indexes like the S&P 500 or Nasdaq, all of which are safe, stable investments with high returns (like a steady 10% or 11% a year). You won’t get incredibly rich with them, but you can still make good money with enough invested.

Yeah, well results may very on that 10-11%. I got some ETFs that are at 4% over the last year and some as high as 29%. Yet, I haven't profitted because I haven't followed the rule: "time in, not timing". That needs to stop!

Good post!

 

[Moonstone Eterni]

Yeah, well results may very on that 10-11%. I got some ETFs that are at 4% over the last year and some as high as 29%. Yet, I haven't profitted because I haven't followed the rule: "time in, not timing". That needs to stop!

Good post!

Check out this one and let me know your opinion: FXAIX - Fidelity ® 500 Index Fund | Fidelity Investments

The graph shows a $10,000 investment in this index fund would be worth nearly $40,000 over the last ten years.

I’m young and don’t really have much money to invest. But once I’ve succeeded well in life and have plenty of cash for the future, I’m opening an account with Fidelity and will invest in most of their stock index funds (but not the international ones, which seem more volatile with sub-standard returns). You can see at all of their index funds here: Fidelity Funds - Mutual Funds from Fidelity Investments (Click where it says “index”)

 

[Josho]

Yes, in fact I was hoodwinked about six months ago with a certain cryptocurrency investment. I was told its value would increase exponentially coming up, and it was being promoted as the next Ethereum. Half a year has passed, and this crypto coin lost half the value I bought it as earlier, but it’s recouped a bit. Fortunately I only invested $400 in it, so I didn’t lose much.

I’m thinking I fell for a pump-and-dump scheme. Watch out for these. It’s best to stick to index funds and reliable mutual funds, in my opinion.

Don't know if you saw the pump and dump on silver start of last year, but wow, silver stocks went up heaps for one day and then got dumped back the next and value went crashing back down.

Also a nickel-cobalt stock exploring land in Europe was pumped last year, IPO was something like 20c, it opened at like 80c on the first day, rocketed to $3.60 on the same day, currently around $1.44, but it did bottom out at 66.5c a couple of weeks ago.

Regular people definitely do get hurt by these pump and dumps though.

 

[Moonstone Eterni]

Don't know if you saw the pump and dump on silver start of last year, but wow, silver stocks went up heaps for one day and then got dumped back the next and value went crashing back down.

Also a nickel-cobalt stock exploring land in Europe was pumped last year, IPO was something like 20c, it opened at like 80c on the first day, rocketed to $3.60 on the same day, currently around $1.44, but it did bottom out at 66.5c a couple of weeks ago.

Regular people definitely do get hurt by these pump and dumps though.

I hear you. My experience listening to those cryptocurrency “experts” on TV and the internet showed me their real expertise is misleading people into bad investments and getting rich in the process. Maybe they will get investigated, but it seems like there are so many of these fake investment experts out there that it is unlikely any punishment will happen.

 

[Josho]

I hear you. My experience listening to those cryptocurrency “experts” on TV and the internet showed me their real expertise is misleading people into bad investments and getting rich in the process. Maybe they will get investigated, but it seems like there are so many of these fake investment experts out there that it seems unlikely any punishment will happen.

Some of these "experts" also got lucky and were in early, and then tell everyone once they have made over 1000%, by then it's usually too late.

 

[FHII]

Check out this one and let me know your opinion: FXAIX - Fidelity ® 500 Index Fund | Fidelity Investments

The graph shows a $10,000 investment in this index fund would be worth nearly $40,000 over the last ten years.

I’m young and don’t really have much money to invest. But once I’ve succeeded well in life and have plenty of cash for the future, I’m opening an account with Fidelity and will invest in most of their stock index funds (but not the international ones, which seem more volatile with sub-standard returns). You can see at all of their index funds here: Fidelity Funds - Mutual Funds from Fidelity Investments (Click where it says “index”)

Sounds good. I looked at the website briefly... Year to date they are down 5%, but that shouldn't scare you as everything is. We are only in March and its been rough.

You are young... Pick a plan after researching it and stick with it. You will do well. The one thing I would advise a young investor other than that is not to get into debt. I am not talking about borrowing for a car or house.... We need to unless you have the cash to buy them outright. But don't run up the credit cards and furniture loans! If you make 10% on the market but pay 24% in loans... You are losing!

 

[Moonstone Eterni]

Sounds good. I looked at the website briefly... Year to date they are down 5%, but that shouldn't scare you as everything is. We are only in March and its been rough.

You are young... Pick a plan after researching it and stick with it. You will do well. The one thing I would advise a young investor other than that is not to get into debt. I am not talking about borrowing for a car or house.... We need to unless you have the cash to buy them outright. But don't run up the credit cards and furniture loans! If you make 10% on the market but pay 24% in loans... You are losing!

Yeah, I struggled to pay off $1,800 in debt from a credit card. I wanted a new top-of-the-line gaming PC but didn’t have the money to pay for it at the time, so I stupidly and ignorantly signed up for a credit card. Biggest financial mistake ever! Those cards feel like loansharking except it’s all legal.

 

[Josho]

Twitter has gone up since Musk has gotten involved, now he has done a $44b USD takeover deal, should be interesting to see how this plays out.

https://www.google.com/amp/s/www.bbc.com/news/business-61222470.amp

 

[FHII]

Haven't checked, but if so its about the only thing that has gone up recently..

Got a feeling things won't be drastically changing soon.

 

[JohnDB]

You know, that's so true – Musk has a knack for picking things that end up blowing up. Everyone was criticizing his moves with Twitter at first, but now it looks like something big is brewing there. And the growth of Tesla's stock TSLA Insider Trading Activity | Tesla, Inc. Insider Buys and Sells over the past year is just insane, like a rocket. Feels like he always finds a way to tur n things into success. Wonder what he's going to come up with next?

Currently,
An index fund is a smart move.
We have a changing political structure....meaning that single stock investments are going to be very risky.

We also have high inflation.
Meaning the only thing to do is asset protection. Value stocks and commodities are going to do well. Stocks with low P/E ratios. Commodity based stocks like gold, copper and silver ETFs.
Commodities like coffee and other softs are still a FOREX/weather play. Energy stocks are going to still be boom or bust but stocks like Energy Transfer (pipeline and storage)are going to be good "buy and hold" with the DRIP option turned on for dividends. Not outrageous returns but a solid 8-15% return annually. You won't get filthy rich but you will beat inflation.

However....a simple S&P 500 index fund with low fees is a great way to make money too.