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/biz/ - Business & Finance

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266008 No.266008[DELETED]  [Reply] [Original]

"Diversify" they said
"You'll do great" they said

>> No.266010

Diversifying is good at lowering risk, but then you went and used leverage to raise it back up.

>> No.266011

had you bought all the company's in S&P 500 you would be guaranteed a profit. you didn't diversify enough!

diversification is a bet on your countries economy

>> No.266020

In what sectors did you invest?

>> No.266022

>buying on margin

>> No.266023

Hasn't worked out well for inner city schools either.

>> No.266038

>>266008
You moron, buying an assload of correlated stocks isn't diversification. You need to purchase a large number of reasonably uncorrellated assets in a risk-proportional manner (i.e. inverse beta weighting, inverse variance weighting, minimum volatility, maximum diversification ratio, etc) before you apply 5:1 leverage and hope for a win.

>> No.266048

>>266023
lol

>> No.266051
File: 104 KB, 501x585, jew.jpg [View same] [iqdb] [saucenao] [google]
266051

>>266008

>Goy thinks he can beat the algorithms

>> No.266054

>>266051
our of curiosity, is it possible for the average computer guy to get his hands on these algorithms?

>> No.266055

>>266054

Bribe the mathematicians and physicists who work on wall street.

>> No.266060

>>266011
>putting all your stocks in one countries economy
>diversified

>> No.266073
File: 13 KB, 270x187, images.jpg [View same] [iqdb] [saucenao] [google]
266073

>>266051
the antisemite thinks an algorithm can beat me

>> No.266079

>implying 20 is diversified
>implying you have sector diversification
>implying today isn't a down day

>> No.266077
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266077

pleb

>> No.266093

Stocks... majority of traders lose money. . Public still believers it's a good investment

>> No.266098

>>266093

A lot of day traders lose money. People who make long-term investments tend to do well since the market tends to grow.

>> No.266102

do you have to do anything special for the brokerage to allow 5 to 1 leverage?

>> No.266104

>>266093
warren buffet isn't the majority of traders, majority of businesses fail, majority of bands fail, majority of athletes fail, majority of pick up lines fail, majority of marriages fail, majority of people fail, majority of what you have just written failed.

>> No.266110

>>266055

>implying an autist day trader could afford my prices.

>> No.266164
File: 62 KB, 326x308, Congratulations-1.gif [View same] [iqdb] [saucenao] [google]
266164

OH SHIT WE HAVE A WINNER

OF THE DAY

>BORROWING 80 GS TO TRADE

>Congrats !
>Yay !
>Trophy

>> No.266167

>>266104
this fucking blew my mind. Holy shit anon you're a scholar.

>> No.266183

>>266104
>majority of pick up lines fail

well here you go anon... my buddy and i charted this one in the clubs around scottsdale az.

>hey i got a question to ask you
>promise you wont get mad
>promise you wont get mad
>have you ever fucked a total stranger before?

works 33% of the time

>> No.266186

>>266110
300k a year right?

>> No.266188

>>266110
>implying you're not NEET

>> No.266190

>>266183
>works 33% of the time
So the majority of times you ask it fails?

>> No.266197

>>266190
still get laid at least once..

then you have to account for the times i fuck the chick after the night that i used the pick up line...

pick line to sex ratio would be better

>> No.266199

>>266038

As in some ETF? Some mutual? Some bonds? All are uncorrelated? If you buy/diversify in the same index they're all correlated then.

>> No.266208

>>266190
Risk/reward analysis. 2/3rds of the time, you get that slight pang of rejection. 1/3 of the time you get laid. 9:1 payout on 1:3 odds is still pretty good. Depends on how much you value your feelings versus anonymous sex.

>> No.266216

>>266038

what this mofo said. Does anybody at least know a little bit of modern portfolio theory before they throw their money at their brokers

>> No.266218

>>266199
As in across assets. Try something like total stock market (VTI), total corporate bonds (LQD), total treasury bonds (IEF), gold (GLD), market neutral funds (MERFX for merger arb, VMNIX for long short, etc), and then figure out some kind of weighting scheme that lowest risk as much as possible. Even just an equal weight portfolio matches the S&P 500 over the past decade with a third of the volatility and a 17% max drawdown, so it should be plausible to come up with a 3:1 or 4:1 leveraged strategy with a 25% expected return and 20% annual vol.

>> No.266223

>>266218
is the borrowing not more costly than the profits from his investments?

>> No.266234

>>266223

I mean, maybe? Depends on the source of funds. Anybody who can get 5:1 leverage is probably trading out of a prop shop or a place like IB, which has margin rates of around 1.5%. Since the portfolio I'm looking at has expected returns of around 6%, that hould't be a problem, but if you're borrowing from babby's first brokerage at 9%, the you're fucked.

>> No.266242

>>266234
are you knowledgeable about finance and investing in companies?

>> No.266281

>>266208
>Hitting on skanky club sluts
>Valuing feelings
Top lel.

>> No.266287
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266287

>>266008
Diversifying is for saps. If you want to "diversify" you might as well buy an index fund. If you want to beat the market, you shouldn't have over 10 stocks. Preferably 4-6. That said, you likely lost money because of that and the stocks you bought were completely overvalued. The number one rule to making gains is you have to buy undervalued stocks (or fairly valued stocks if the company is really great).

>> No.266292

>>266287
>you shouldn't have over 10 stocks
why?
>inb4 some irrational banter

>> No.266295

>>266287
>Don't buy overvalued stocks
>buy an index fund
Oh boy, we're overvalued as hell here. I appreciate your sentiment, though.

>> No.266304
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266304

>>266008
>Not picking a overbought stock and shorting the fuck out of it well in advance

>> No.266308
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266308

>>266287
>>266292
The overwhelming majority of great investors have never had more than that. Warren Buffett usually only has 75% of his portfolio in five or six stocks. Claude Shannon beat the shit out of the market with only three stocks for like 30 years. Diversifying, in theory, protects you from risk, but really sets you back with gains, and essentially limits you to being an index fund.

>>266295
This. Index funds are overvalued right now as well, as is nearly every stock. I meant in general. Wait until after a correction or crash in the next year or two.

>> No.266323

>>266304
I was under the impression that you couldn't short stocks, only ETFs? (I guess getting a put option is technically "shorting" a stock, but you still own it?)

Does this game have graphs for the stocks and so on, so that you can put stops/limit orders out and whatnot?

>> No.266347

>>266308
if there is a crash i will be rich!

>> No.266352

>>266008
It doesn't look like your diversified though. You need diversification in 3 days

Asset class (owning stocks and bonds)
Securities (owning thousands of stocks and bonds)
Region (owning thousands of stocks and bonds over multiple countries)

Only then are you diversified. You can get Vanguard all-in-one funds that do all of this for you (and re-balance). Check out the LifeStrategy funds.

That's what true diversification is.

>> No.266370

>>266352
*3 ways

>> No.267986

>>266055
Yeah, Bribe the highest paid people in the world. Good luck with that.

>> No.268263

Well you still have to know what you're doing and not just buy random crap