[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 10 KB, 179x206, 1612493294610.jpg [View same] [iqdb] [saucenao] [google]
29274260 No.29274260 [Reply] [Original]

>have $200 to invest
>put $50 into four coins
>all increase 50%
>increase of $25×4=$100 profit
>or instead, go all in on one coin
>it increases 50%
>still $100 profit
please explain to me then how "overdiversifying" is a thing

>> No.29274341

what happens if one of your coins goes up 100 percent but the other goes down 150 percent? It’s not rocket science...

>> No.29274386

>>29274260
because most of this coins are dogshit anon

>> No.29274466

usually your best's gains will be offset by your worst's underperformance at least to some degree so the idea is to pick your best as its tough to pick four winners at once especially when you are starting out probably in the middle of a bull run

>> No.29274499

>>29274260
you are assuming that they all will grow by the same amount (50%) which is extremely unlikely in the real world

the more you diversify the less likely you are to have big gains or big losses

>> No.29274573
File: 473 KB, 500x361, Retard Alert.gif [View same] [iqdb] [saucenao] [google]
29274573

>>29274341
>goes down 150 percent

>> No.29274577

>>29274260
>please explain to me then how "overdiversifying" is a thing
Yeah, it's that "ALL increase by 50%" bit.