GME was just done for laughs. A hedgefund lost 53% of its investment in the process. That's the reward you got when you bought GME.
If you want to earn money then you should never trade, and always invest. That means putting in your money with the expectation that a specific company or a specific portion of the market is growing. Think of stocks like Apple and Amazon or ETFs that mirror the S&P 500 index.
Bitcoin has established itself and has staying power so don't be shy to put some (not all money) in there.
Also, never trust random internet people (including me) when it comes to investment advice.
But and hold has been corrupted into HODL, and cryptocoins enthusiasts / meme stonks will wreck people because of it.
Buy a stock so that you keep holding it for 10 years is good advice, but not in the context of today's mania. It's advice that is supposed to mean 'buy safe things', not 'buy that thing with exponential growth that might be worth 1000x it's current value in 10 years.
I do think that blogs / advice like what this post does is overall a good idea and good advice. But I find it difficult to discuss in practice due to the HODL corruption.
First crucial advice: don’t take financial advice off the internet from a group mostly made up of people who have never had a million dollars or more to invest. Ask people who can show you they’ve got millions more than you and have had them for years through ups and downs..
Second: there are a gazillion factors that goes into making solid investing advice; what’s your current living situation, what’s your 5 year outlook, 10 year outlook, ambitions in life (wanna retire soon or you’re planning to work and just have this as a long term nest egg), what’s your appetite for risk, do you need the money in the next 10 years (at all!), if you invested in something and markets suddenly crashes and your invest was suddenly worth 500k, what would you do, hang on and ride it out or sell? .. and on and on.
What matters is simple long term low cost investments, and then not touching shit no matter what happens. Hell, just buy cheapest sp500 index etf (vanguard or ishares or similar) and hang on for 20 years and you’ll be in extremely good shape.
You should be prepared to lose all your money in any investment.
This PSA is a pretty lame scare tactic. Sure, BTC seems riskier than say AAPL stock, but both can go to zero. So, a PSA like this one seems like propaganda more than level-headed investment protips.
I’d rather this be “stop saying that XYZ will go to the moon, guaranteed money” not discouraging actually good advice “don’t invest more you can lose”. The real grift is all the false hope masked as certainty…and I say this as someone is is pro Bitcoin
I’d even rather it be “don’t invest more than your willing to put down and hood for 5yrs in case of a sudden downturn”
Don't worry about the weirdo investors! They're still alive, they were not harmed in any way, they'll be fine. They aren't even investing their own money! All investors have a broad strategy, and they have anticipated that not all their investments will work out.
Also, you should be celebrating the risk you took to build something great. There's absolutely no shame in that. Feel proud of everything you learned, these lessons will remain with you for the rest of your life.
This is wrong: "If you don't understand something inside out don't directly invest in it - it's that simple."
It's a great thing to say when you want to be, as you say, a smug cunt. But it's not how investment works.
Risk and reward are strongly correlated. Some of the best investments ever have been in things that nobody understands very well.
I think there are great lessons that people can draw from this. And as somebody who hasn't put any money into BTC, I can certainly suggest a few. But "wait for perfect understanding" is not one of them. For the smart, that means, "wait forever". The less smart will just wait until they've run out of known unknowns. But there are always unknown unknowns waiting in the weeds to ambush you. Life is risk.
I'm a long-term investor. I got in back in March, way before the split or much of the stuff that has come to pass. I documented what I was doing back then, and I think my bets have held up pretty darn well!
When you see evidence that you've missed something, don't double down with your head in the sand...
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