Dumb Money Lesson - What To Do About All That Filthy Luchre
Good News! Last night we hit a new high water mark. We have started to increase our exposure by buying some more cryptocurrencies. It has been 10 days since the last high water mark. From that point the fund had a 10% drawdown from the highwater mark. Exposure was reduced to 50%.
Not only increasing exposure but we are transferring risk out of BTC. It has been range trading for a bit and I feel the need for a little more volatility. The increased exposure is going to go into Ethereum. There are several reasons for this. One, I can keep it in Coinbase and trade in GDAX's liquid markets. The second, is to be able to transfer to dollars quickly.
The wife and myself decided to shut the fund down at the end of January. We are going to start it up again in February with a smaller base of capital.
What to do about the gains that we have had over the last 6 months, has been the question for the last two weeks. At first we talked about redoing the master bathroom and the guest bathroom. Also replacing the front door to the house with smoky glass to let in sunlight. In the last two days we changed our decision to doing a remodel of the kitchen. When we first moved in, we talked about redoing the kitchen, but had decided that it would have to wait awhile, because of cost. Well we are going to reduce the working capital in our trading so that we can get some use, from a new layout on the kitchen, for the next few years. This means I'm going to have to grow my capital with much smaller absolute returns. And maybe come up with some side hustles to feed my trading.
Trading Derivatives?
Crypto Forex Trading
OpenLedger Referrer
I've been thinking about my own portfolio optimization and trying to figure out how to rebalance my crypto. Out of curiosity, why not Litecoin vs. Ethereum? Some folks are more bullish on the long term hockey stick potential of Litecoin, especially if you're going to reduce your working capital. (Truthfully, I myself have moved some WC into non-U.S. equities as a means to hedge my overall portfolio)
LTC for me is a one trick pony (0.5% capital exposure). It is very similar to BTC - Transaction Processor. Now, ETH is a mutilfunction blockchain. That is why I'm partial to EOS. I also have my eye on BNT and MIOTA. Multi-function and hyper-specialized blockchains is where to look for value to increase. So you could say I'm a macro-trend following trader using some momentum rules. I am very bullish on non-correlated assets to US equities. Also I'm very bearish on the Euro. But, that trade hasn't panned out so well. I've already lost $2000.00 on that trade.
Start bloggin' my man. BTW, I'm a Patriot Fan! Go PATS!
Interesting - hard to argue with that, although I admittedly am also struggling with trying to value cryptos at their "true" value vs. where momentum is carrying them. Definitely looking to start blogging - would love to get some deeper conversations going on some investment strategies for crypto and portfolio optmization, etc.
And as much as it kills me, need your boys to put up some numbers for me for daily fantasy (e.g., the final 1% of my portfolio).
The best part must be deciding on what you are going to do with all your gains. Redoing the master bathroom seems like it would be really nice
Seems like a great plan @gutzofter. I'm new to cryptocurrencies and would like to invest. What do you suggest @gutzofter?.
@adedoyinwealth
I'm sorry but your question is very open-ended. I couldn't even begin to give you advice on what to invest in. I followed you. Why don't you post this very same question and add some things about your goals for investing. Another positive about posting something like this would be that you could get lots of opinions and ideas and decide for yourself. If I was to tell you what to invest in, then it would be a lot like you playing a lottery. Many play and lose and few win.
Okay then. Thanks @gutzofter. I'd sure do that soon.
come back here and let me know when you've posted so i can go and check it out.
Okay, thanks @gutzofter. Would get back to you soon.
Great share!
Very interesting read! Thanks for sharing.[