Cryptocurrency and Intelligent Investing

[Anonymous No.10795855]

Hey anons, I'm new to stocks and investing. I'm reading Benjamin Graham's "The Intelligent Investor" and am wondering how is "investing" in Crypto not speculative? How do you determine the value of a cryptocurrency so you know what price you're willing to pay for it?

[Anonymous No.10795906]

>>10795855

Stop reading that fucking garbage book

[Anonymous No.10795931]

>>10795906
Why?

Graham is an alumni of my uni :D

[Anonymous No.10796063]

>>10795855
There are a lot of different ways you can invest, the method outlined in that book is dated due to advancements in technology. Not to say you won't make some money with that method but simply speculating what the future will look like will have a much higher return.

[Anonymous No.10796172]

>>10796063
>simply speculating what the future will look like will have a much higher return
Isn't this only in the short run and never works in long run? Can you BTFO Graham's points against speculating?

Also, how are the methods dated? People were saying they were dated when the Dot com bubble happened and then everything crashed and Graham came out on top again

[Anonymous No.10796281]

>>10795855
Investing in stock that doesn't pay dividends and isn't a new issue is also speculative. You aren't funding any capital expenditures and are just hoping that someone will take the equity off your hands eventually at a higher price.

[Anonymous No.10796331]

>>10796281
>just hoping that someone will take the equity off your hands eventually at a higher price.
That's if you're speculating. Graham says that if you thoroughly research the company's financials and find it undervalued at what price it should be going for, then eventually the price will reflect what it should be properly evaluated at. That's not speculating

[Anonymous No.10796366]

8/8

[Anonymous No.10796378]

How about answering OPs initial question. How to forecast good entry points for crypto? What is the trick? Is it as simple as buy when down, sell when it's going up? Where does technical analysis come into play for crypto? I've used graham's method generally to great return. Dividends are awesome and I can generally value companies and determine valuations and acceptable entry prices. How does one do this in crypto? What are some basic principles we can all utilize?

[Anonymous No.10796548]

>>10795855
Its completely speculative. This is an entire board of NEETs in denial.

[Anonymous No.10796637]

Crypto is definitely one of the most speculative assets to own, its not a hedge against inflation, and we have not sen it perform under a real market crash.

Anyone with background in finance can understand that you cannot pin a solid valuation on something that produces no cashflow.

So yeah, buying bitcoin is not investing as much as it is gambling, which is why im willing to put 5% of my net worth without losing sleep if it drops 50% over night.

Most of the people on here are retards:
>Im either going to make it or kill myself

well, with that mentality while gambling- you will kill yourself and probably should.

[Anonymous No.10796809]

>>10795855
It is speculation. New research suggests that the function of the mind isn't only inputting data, but also to use that data to perform the forbidden art of divination. Trying to create accurate models about the future.

https://horizon-magazine.eu/article/theory-predictive-brain-important-evolution-prof-lars-muckli_en.html

One day I'll use my brain, I can't even wait until I can backtest it. But for now I'll be here gambling and speculating. Traditionally, most people don't buy currencies with the expectation of selling them higher we reserve that right for the guys with the printing machine. But rubes have to make do with old fashioned alchemy like equivalent exchange (minus fees). The idea of saving and turning a profit without exploiting someone is such an alien concept people have turned into an e-brand.

[Anonymous No.10797143]

crypto is not investment. Its not even speculation. Its pure gamble. Actually its just marketing people scamming retards and nothing else.

[Anonymous No.10797344]

>>10795855
All that book teaches you is that value investing is largely useless in todays world and you should just get in low cost etfs and index funds if youre going to follow that book

[Anonymous No.10797454]

>>10797344
>value investing is largely useless in todays world
Why are you saying this? He only really advises that if you're going to be a defensive investor. if you're an enterprising investor, you have to put in the time and energy to find undervalued companies. Surely there are some undervalued companies now?

[Anonymous No.10797504]

>>10795906
Kek this. It's a meme tier book desu right up there with How to Win Faggots and Influence Normies. Here's some actual good books to read, from someone who is using the lessons contained within them to live off passive income.
>4HWW by Tim Ferris
>Anything You Want by Derek Sivers
>Millionaire Fastlane (optional)

These 3 books have made it possible for me to be 30 and have never held a job in my life.

[Anonymous No.10797514]

>>10797344
Dude. Value investing and fundamental analysis are the basis of firm valuation. If you were going to purchase a business outright, you would analyse it with a technique akin to value investing. Times have changed, but fundamentals in valuing a business remain the same

[Anonymous No.10797551]

[Anonymous No.10797647]

>>10797514
Stock market isnt about valuation, its about whether you can valuate better than the 1000000 other analysts reading into a company

I dont believe in efficient market theory, but mostly due to timing issues rather than people not properly collecting and digesting information

[Anonymous No.10797958]

>>10797647
It's totally about independent valuation. I typically don't follow stocks that have market caps above 2 billion. If a stock is over analyzed, it tends to be subject to higher trade volume and speculation. I don't attend in that crap if I can help it. Graham suggests finding small, under analysed, undervalued companies that pay dividends. Thats exactly what I do. And it works. If you can't value a company fundamentally, you cannot determine a good entry price that has a margin of safety. If you want to be a day trader or speculative investor, more power to you, but you should at least understand the difference between what you do, and what value minded investors do. We seek cash flow from dividends, and long term equity gain with a margin of safety. It works. Wannabe investors just wanna make themselves feel better.

[Anonymous No.10798018]

>>10797958
Why do people day trade when it's pretty well proven that it's not as profitable in the long run as value investing? Ego?

[Anonymous No.10798163]

>>10798018
I have a friend that day trades. He had very exacting standards and never leaves his money tied up at a market close. He's in and out really quickly. But he was already a millionaire when he started day trading. He will invest 20 to 100k at a time in one stock, and when it blips half a percent or more, he'll sell. It could be fifteen minutes or an hour and he's out. He's pretty disciplined. But even he has bad days. I'd say most people wouldn't know where to start with day trading, and mentors and professionals are few and far between. Most probably break even or lose money, as with anything else. It might be ego, but it might be stupidity and inexperience.

[Anonymous No.10798224]

>>10795855
Nobody says investing in crypto isn't speculation.

[Anonymous No.10798307]

>>10795855
It's more than speculation it's straight gambling

[Anonymous No.10799234]

>>10797504
>These 3 books have made it possible for me to be 30 and have never held a job in my life.
jeez, that's impressive and also kinda off-putting in the same way... not because I am jealous (because I am doing well myself) but because of how disconnected you probably are from the average person's ordeals... congrats ya weirdo

[Anonymous No.10799299]

>>10795855
It's entirely speculative. Unless you're trading physically backed tokens

[Anonymous No.10799314]

>>10799234
Caring about the average at all.
Just be your own person idiot.

[Anonymous No.10799332]

>>10799234
>how disconnected you probably are from the average person's ordeals... congrats ya weirdo

100% projection, obviously. Besides my gf is a normie and I have normies in my social circle, so I understand the plight.

[Anonymous No.10799402]

>>10799314
*tips fedora*

>>10799332
you should work a little bit at least unless you are truly a conceited idiot or just quite lazy
It is good to know what normal people really, actually do even if you only do it for a year or two out of your whole life.
It will give you a good feel for that kind of work and new experiences of that sort are always good; in fact, it'll literally make your life seem longer for you by the way the brain processes new information and environments slower

[Anonymous No.10799426]

>>10799402
I've considered it and I might.

[Anonymous No.10799539]

>>10796378
Its simple. Manipulate the market and harvest dumb money. Otherwise youre gambling.

[Anonymous No.10799909]

>>10799539
How do you manipulate the market?

[Anonymous No.10800167]

>>10799909
be a big whale