VladKinder
Well-known member
People lose money in all assets due to inexperience and poor behaviour.
In real life if you go to your favourite store and everything has gone up 30% you buy less (or buy none).
If everything is on sale you buy more.
New people in investing do the opposite. They buy what is going up (FOMO), and they sell what is going down (Panic Selling).
Their time frames are far too short (you should invest as if you are going to live forever and only make changes when needed).
And basically they are clueless people trying to get rich quick by investing into something they know nothing about.
Someone who buys a total market index fund (or S&P 500) with a lump sum and doesn't look or touch it for 20 years will
outperform at least 85% of all other investors (other retail investors, day traders, professional fund managers......Ben Felix on YT has all these stats).
I personally do:
85% index funds.
This is my set and forget part of my portfolio.
15% "Hot sauce". Assets that I feel will outperform my index funds over the very long term but that will be more volatile.
But as they are only 15% of my overall portfolio the volatility isn't an issue.
For me this is mainly Bitcoin and Microstrategy (MSTR) stock.
Then of course keep costs as low as possible and act as passively as possibly.
I only act when something as gone parabolic (then I trim it back, not never sell all).
Or if a good asset has crashed and has become a smaller % of my portfolio I buy more (short term crashes = bigger longer term returns).
In real life if you go to your favourite store and everything has gone up 30% you buy less (or buy none).
If everything is on sale you buy more.
New people in investing do the opposite. They buy what is going up (FOMO), and they sell what is going down (Panic Selling).
Their time frames are far too short (you should invest as if you are going to live forever and only make changes when needed).
And basically they are clueless people trying to get rich quick by investing into something they know nothing about.
Someone who buys a total market index fund (or S&P 500) with a lump sum and doesn't look or touch it for 20 years will
outperform at least 85% of all other investors (other retail investors, day traders, professional fund managers......Ben Felix on YT has all these stats).
I personally do:
85% index funds.
This is my set and forget part of my portfolio.
15% "Hot sauce". Assets that I feel will outperform my index funds over the very long term but that will be more volatile.
But as they are only 15% of my overall portfolio the volatility isn't an issue.
For me this is mainly Bitcoin and Microstrategy (MSTR) stock.
Then of course keep costs as low as possible and act as passively as possibly.
I only act when something as gone parabolic (then I trim it back, not never sell all).
Or if a good asset has crashed and has become a smaller % of my portfolio I buy more (short term crashes = bigger longer term returns).
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