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/biz/ - Business & Finance

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9008084 No.9008084 [Reply] [Original]

>2 years ago, see /biz/ joke about diversification being stupid in the same way it currently jokes about locking in BTC's price
>Over time, retard newfags unironically started to believe diversification is a meme.

You retards do understand that increasing risk doesn't necessarily mean increasing reward, right? Right?

>> No.9008142
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9008142

>>9008084
Am I diversified enough?

>> No.9008190

>>9008142
Decrease TRX, distribute it into XRP, QTUM, EOS.

>> No.9008242

Lower risk = lower reward (your diversified blockfolio will change +/- 0.1x)

Higher risk = higher reward (your single coin will change +/- 100x)

>> No.9008279

>>9008242
That's such bullshit. Higher risk does not automatically mean higher profits. If you pick projects that all have the same odds of going 100x, your reward profile is still the same with drastically smaller risk. Jesus Christ moron, read the original post:

>You retards do understand that increasing risk doesn't necessarily mean increasing reward, right? Right?

>> No.9008483

>>9008190
Thanks for the insight. I was considering selling a portion of TRX shortly before the main net run up ends, I anticipate it going up a bit leading up to May 31st.

>> No.9008526

>>9008084
>split your money into 10 things
>1 doubles
>you cry
vs
>put your money into 1 thing
>it doubles
>you raff

>> No.9008551

>>9008084
diversification within the same hypercorrelated sector of worthless tokens is barely diversification at all

>> No.9008589

>>9008551
>what is idiosyncratic risk

Diversification doesn't make market risk disappear retard. But in a space where developers have almost total free reign to do stupid shit, mitigating idiosyncratic risk is necessary.

>>9008526
You people keep focusing on the upside as if that's the only possibility. Here's a more likely scenario:

>split your money into 10 things
>5 double
>you're pretty happy
vs
>put your money into 1 thing
>it doesn't double
>you cry

>> No.9008602

>>9008142
What's that app?

>> No.9008632

>>9008483
Yes. Another piece of advice: get out before the big sell off. You might think that your strategy is to wait until the bubble pops and sell on the way down, but selling on the way down is incredibly difficult in practice. You can decide when you think the sell off will be

>> No.9008637

>>9008602
Look for bitrift on the playstore

>> No.9008732

>>9008632
Yeah I'm anticipating it will dump pretty hard on/around release so was thinking of a few day buffer at least.

>> No.9008776

>>9008589
Or just do some basic DD and don't throw money at abject shitcoins. Funny to watch diversification fags get blown the fuck out during downtrends when the correlations of their "diversified" shitcoin "assets" all move to 1.

>> No.9008822

>>9008776
Since when does diversify mean buy every little shitcoin, dipshit? And when does it mean just turn your brain off and not consider the causality of future correlations (please don't tell me you're using a lagging indicator to do your trades you fucking idiot). God you monkeys are insufferable.

>> No.9008846

>>9008776
Oh wait, you're the retard that doesn't know what idiosyncratic risk is. Just ignore my comment. You deserve to stay poor.

>> No.9008867

>>9008084
diversification is good if you’re already rich
people here have 10k max they are better off going all in and praying

>> No.9008895

>>9008867
You fucking idiot, if someone finds 10 projects with similar odds of increasing in value, they're better off holding all 10 than picking just one. Doesn't matter if I'm investing $100,000 or $1,000. "Going all in and praying" is just classic newfag retarded advice that old /biz/ would laugh at.

>> No.9008922

>>9008084
The problem with diversification is that it makes it hard to keep up with news and follow the charts. Price alerts is impossible of you're keeping track of 10 coins. If that's not something you do, fine, then just hodl whatever.

>> No.9009102

>>9008895
>im le old biz
kys please

>> No.9009106
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9009106

>>9008846
Please keep lecturing me on first year undergraduate finance concepts, you're amusing me.

>> No.9009156
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9009156

>>9009106
You're right, my years of education from a top 10 b-school is just no comparison to whatever backwoods hick college you went to that gives unironic A plusses. Lmao.

>> No.9009252

>>9008895
dont try to help the newfags they never listen. this is their board now

>> No.9009273

>>9009156
lol imagine being as pathetic as this guy

>> No.9009327

>>9009273
You're right. Just go all in on LINK like a good little retard and keep those fingers crossed.

>> No.9009357

>>9008084
It's trading one kind of risk for another and in some cases it can have a lower profile. Going all in is dumb but at some point your worst idea isn't worth it.

>> No.9009364

>>9009327
please post another one of your report cards you seem really smart
did mommy and daddy give you big boy points and allowance for those grades

>> No.9009377

>>9009364
You're confusing me with this hick >>9009106

>> No.9009425

>>9009357
The only case where it has a lower profile is if you're adding a riskier and correlated asset. All assets in crypto are moderately to highly correlated (ignore what these retards say), so really, you're just looking to mitigate idiosyncratic risk. The risk that Vitalik gets hit by a bus, or that Larimer is convicted, or that BCH is exposed to be unsafe. Shit that's apart from the general market. It's literally basic finance as even a brainlet hick pointed out.

>> No.9009443
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9009443

>>9008084
that justified lesbian jooish bitch isnt even funny. God how she has been pushed to be relevant by the media. Her eyes are so narrow and shrewish and im sure her teeth are not real.

>> No.9009460

>>9008084
In financial markets systematic risk actually does mean higher reward. Might wanna google risk premium.

>> No.9009500

>>9009460
God, you're dense.

>> No.9009559

>>9009500
CAPM, brainlet. Expected return = risk-free rate of return + beta * market risk premium
Doubt you went to school at all if you don't understand this.

>> No.9009570

>>9009425
I only have 4 coins. I don't understand the rest so I haven't found a reason to want them.

>> No.9009610

>>9009559
Re-read the first post, retard. I'll help your slow ass out:

You retards do understand that increasing risk doesn't necessarily mean increasing reward, right? Right?

Note: zero mention of specifically systematic risk. Why the fuck would I be talking about systematic risk in a post about diversification. Also, it's painfully obvious that you're a first year finance geek if you're still leaning on the CAPM as your go to explanation.

>> No.9009651

Having a lot of assets, is essentialy like betting on horses in a race competition.
Invest in things that you have an actual understanding and have done proper research.

>> No.9009672

>>9009559
all the financial wizards and all the degrees and all the assets on earth and they still couldnt beat wau coin LOLOLOLOLOLO you should kill your professor for teaching you bullshit

>> No.9009683

>>9008084
nah dumbass diversification within the same asset class isnt really diversification. throwing a bunch of darts at a board hoping one sticks isnt being a smart investor

>> No.9009798

>>9009610
Yea, I actually didn't see the part of your first post about diversification. I agree with you. Sorry about that.

I don't agree about CAPM being a bad way to explain risk in asset pricing. I studied BM, not finance fwiw.