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You can say the same about options traders who got wiped during the tech stock decimation last year or plain old gamblers. Ultimately they are making a predicti

by _8j50 4y ago

You can say the same about options traders who got wiped during the tech stock decimation last year or plain old gamblers. Ultimately they are making a prediction and many have gotten rich over crypto but just like stocks you buy in a downturn like now not when it is all hyped up. Even a dollar would have lost use ~20% loss over the past few years just sitting in a bank. The best place to store wealth is in assets not currency. People who stored their wealth in crypto are as silly as people who put savings in a bank except with more volatility like this. Crypto isn't a fad that has gone away, there is still demand for it except now all the exchange crashes will introduce regulation that will make it a safer bet than before. Trial by fire and all I guess. You shouldn't bet or risk money either in stocks or crypto that you aren't prepared to lose. That's like the first-ish rule of investment isn't it?

Eisenstein 4y ago
And retail traders should not trade options. It is a terribly stupid thing to do and is almost guaranteed to lose them money. If a sophisticated financial actor wants to trade in options or crypto, then I don't think it is terribly productive but that is their business. There are also people who fly airplanes and cliff dive, but if my acquaintance Joe the whitecollar sales associate who lives two houses down from me starts telling me he is going to go solo flying or cliff diving for the first time with no experience, I will warn him off it in no uncertain terms. As well, if he is talking about how much he is making on the side doing options trading, do you think I wouldn't tell him that it is a bad idea and he is going to end up most likely losing a great deal of money? People who make these comparisons like you have are acting as if crypto is being marketed to wall street and not people like Joe.
- _8j50 4y ago
  It all depends on how much they are spending. If joe has $1k disposable income he can play the lottery,crypto,options whatever. I personally only ever bought a few hundred dollars at a time only to sell at 5-10% profit. Even right now you can make a few bucks on the normal turbulence. You seem to have overlooked my statement about rule #1 it has to be money you can afford to lose and of course people will tell you the risk is tol high, you have to learn the hard way if you think you know better.
  - Eisenstein 4y ago
    You seem to overlook the fact that you are comparing sophisticated financial instruments to 'investments' marketed at moms & pops sometimes as de facto bank accounts with FDIC markings on the marketing materials. Did I know people who made out well playing the crypto market? One. Did I tell him to not do it? Nope, because he knows what he is doing. The flipside of this is the 5 or so people in my direct personal sphere and hundreds if not thousands (if you count the lurkers who followed conversations I was having with individuals) online who have advocated for or expressed direct involvement or interesting in playing in crypto markets that I have advised against doing so, with a rare few heeding my warning but the overwhelming majority using circular logic, fallacies, personal attacks, and 'not-even-wrong' economic theories to justify putting a large portion of their income (sometimes even taking out loans) on it. Please understand that the perspective I am trying to show the readers of my comments is my own.

by _8j50 4y ago

Eisenstein 4y ago

And retail traders should not trade options. It is a terribly stupid thing to do and is almost guaranteed to lose them money. If a sophisticated financial actor wants to trade in options or crypto, then I don't think it is terribly productive but that is their business. There are also people who fly airplanes and cliff dive, but if my acquaintance Joe the whitecollar sales associate who lives two houses down from me starts telling me he is going to go solo flying or cliff diving for the first time with no experience, I will warn him off it in no uncertain terms. As well, if he is talking about how much he is making on the side doing options trading, do you think I wouldn't tell him that it is a bad idea and he is going to end up most likely losing a great deal of money? People who make these comparisons like you have are acting as if crypto is being marketed to wall street and not people like Joe.

_8j50 4y ago
It all depends on how much they are spending. If joe has $1k disposable income he can play the lottery,crypto,options whatever. I personally only ever bought a few hundred dollars at a time only to sell at 5-10% profit. Even right now you can make a few bucks on the normal turbulence. You seem to have overlooked my statement about rule #1 it has to be money you can afford to lose and of course people will tell you the risk is tol high, you have to learn the hard way if you think you know better.
- Eisenstein 4y ago
  You seem to overlook the fact that you are comparing sophisticated financial instruments to 'investments' marketed at moms & pops sometimes as de facto bank accounts with FDIC markings on the marketing materials. Did I know people who made out well playing the crypto market? One. Did I tell him to not do it? Nope, because he knows what he is doing. The flipside of this is the 5 or so people in my direct personal sphere and hundreds if not thousands (if you count the lurkers who followed conversations I was having with individuals) online who have advocated for or expressed direct involvement or interesting in playing in crypto markets that I have advised against doing so, with a rare few heeding my warning but the overwhelming majority using circular logic, fallacies, personal attacks, and 'not-even-wrong' economic theories to justify putting a large portion of their income (sometimes even taking out loans) on it. Please understand that the perspective I am trying to show the readers of my comments is my own.