Invest during crisis. Here’s why.Let's take Adidas shares as an example.
To date, since the company's IPO in April 1998 the CAGR is 4.4%.
At the IPO, the market price was 39.68 euros. 1.5 years later, in February 2000 – 70% less, 14.06 euros. CAGR would almost double: 9.6–9.8%.
Similarly, for example, all subsequent highs and lows: 6.1% vs. 11.1%, 3.1% vs. 8.7%.
Unfortunately, the probability of buying at the very bottom is small. But we have to try.
What about now?
THIS IS NOT INVESTMENT ADVICE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
Long-term
Investing is the ability to say "no" so that you can say "yes"Have a wonderful day, my dear friends!
Let's get acquainted. My name is Capy. Someday I will tell you my stunning life story, and how fate has tied me to investing. I can't quite believe it myself sometimes... But that's not what today is about.
Today I'm starting a series of posts to introduce you to my vision and strategy in the very multifaceted and insanely interesting topic of stock investing.
Let's start by figuring out why you should be an investor?
Many people think that investors are some kind of Wall Street wolves who trade stocks of companies and make unimaginable amounts of money on it. I'm sure there are those too. But, in fact, investing has long ceased to be the monopoly of the employees of banks, brokerage companies or big businessmen.
Investing is available to absolutely everyone who plans their wealth and has the basic knowledge obtained at university. Or aspires to learn this indomitable beast. This is the reason I started this blog: to help everyone who wants to understand and share my ready-made strategy that you can apply in the process of investing.
It's worth saying that every one of us has done the act of investing at least once in our lives, perhaps without even realizing it. For example, when placing money on a bank deposit (the well-known bank deposit), renting out real estate, opening a business or just learning. All these actions have one common formula: you give something away now in order to get it back in the future and, in addition, to make a profit.
When you rent out an apartment, you cannot live in it because you have given it to other people to use. But when the lease expires, you'll get your apartment back, plus a profit in the form of the rent you've been receiving all that time.
When you start a business, you put money into it so you can pay it back later through the proceeds. And, of course, you expect the returns to exceed the costs invested.
When you invest in education, you plan to use what you have learned to achieve something, whether it's getting a job or enriching your inner world.
It is the expectation of profit that is the main motivating factor for the investor and the main purpose of the investment.
If you give someone an apple and they give it back to you after a while, that's not an investment. And if you give someone an apple, and after some time you get two apples back - you are already an investor, because you made a profit in the form of an additional apple.
The upcoming series of posts will focus on one of the investment options - namely, investing in stocks of companies. I plan to teach you how to approach each trade wisely and in a measured way to keep you from engaging in short-term speculation that looks like a casino game.
Going back to our formula, a stock investment is a transfer of your money to a particular company in exchange for a stake in its business. The purpose of these actions is to make a profit in the future from the sale of the shares (in the case of buying cheaper and selling higher), or the second option - to receive dividends. Dividends are when the company shares with you a portion of the profits in proportion to your share in the business. But we will focus on the first option to make a profit, that is "buy cheaper - sell more expensive". And the dividends to consider as a nice bonus to this strategy.
I will publish a new post soon. Let's talk about approaches that will allow you to find funds for investment.
CRYPTO TOTAL MARKET CAP - $7T by 2025Bitcoin is a classic liquidity measure.
Prices have changed.
But the fundamental need for crypto hasn’t. Nor has the core technology, which is only growing stronger .
Would like to see Inflation Topping out ,
Short rates to drop, Bond yields drop,
Stock Market Bottom Formation and commodities to lose strength before Pulling the Trigger .
BTC 23.11.2022I think that the current prices of BTC are not suitable for trading . For spot purchases, the $13300 and especially the $10000 price level are ideal places to buy BTC.
Also, I think the $19000-19200 range is the maximum that BTC can go through in a possible mini-rally . According to my expectations, BTC will continue to fall without exceeding 19200$ levels and will accumulate between 13000$-15000$ levels for a long time. Afterward, it will come to the levels that are the bottom of the rising trend and make the last liquidity cleaning and the new bull will start. This is, of course, a process that will take months.
What I write here serves as a note to myself. Does not include investment advice.
KEI FOR MOMENTUM INVESTING Here we expect the upward trajectory in KEI to stay in this parallel channel. We predict the price would stay in this channel for maybe 6 months. In case if it breaks it we also have our risk defined. Betting on wires and cables industry. I can say KEI is the must have.
FOR EDUCATIONAL PURPOSES ONLY CONSULT YOUR FINANCIAL ADVISOR BEFORE INVESTING.
the trend is strong with this ICE: a simple long term approachWas not planning to do any deep dive research for this one, but the long term trend of ICE is too obvious to ignore.
Despite the choppy daily chart with now and then a small jump, it did grind higher and higher, decades-long.
When dealing with such a long time frame, it's important to adjust the pr-ICE to splits, dividends, and rights offerings.
And let the logarithmic trend be your friend.
A drop deep into the lower channel, without breaking it, provides a once in a decade opportunity,
So one simple strategy for long term investors, assuming you did your homework and will keep following the development of the company:
Buy when under the middle line, hold or buy less when above; keep the first tranche light and periodically add a small sl-ICE.
Chainlink looking for a bullish run of $13 by late October Bottom reached possibly on the weekly chart. May see a retest of $6.40 in the next few days. Futures look promising for chainlink if all goes well we should see $12.80-$13 by late September or Mid October. no technicals here just pattern observations. Good luck and happy trading!
LINK LONGWatch out for Bitcoins direction....
The market is shaky and waiting for a big move. Everyone is waiting for 6-10K Bitcoin - I'm not so sure. I believe in Link in the long run. Looking at Bitcoin's direction, break to the upside and I go long LINK. Disclaimer - LINK is one of the coins I like to DCA into. So I will hold it even if Bitcoin start dumping.
SOLUSD LONG TERM IDEABINANCE:SOLUSDT
SOL was one of the best performing coin in 2021. After Topping 250+ SOL dropped almost 90% to it's original ATH price.
if we look closely SOL is forming descending broadening wedge pattern. Which is bullish pattern.
if we take a look at weekly RSI and MACD both of them are quite bullish. VPVR indicator also showing strong support near 38-40$ area. that doesn't mean we can't go below this level. this is just technical analyses so we will just ignore the fundamentals for now.
SL: $37
TP: $70
if we break the wedge we will see further upward movement to 90$ - $115.
Disclaimer: this is not financial advice
Always stick to your opinions.After 2 months of price action, I am here again to update my chart.
If you read my previous ( Log Fractal ) analysis, there are many proof how strict I stick to my targets.
You can always find reason to buy everywhere...
To be more clear, BTC is about 15% to hit it. I also think, it would fall much lower. There are some chances to fall into green trend line ( Return to the mean).
However, I am gonna buy Bitcoin at first, altcoins on the way lower due to my high-risk management.
At first, you have to find out who you are when it comes to chart. Are you trader ?
I am not any trader.
I'd rather not buy at all, than buy weak position. Patience is clue.
Took years to be so calm.
I even do not consider DCA strategy as good.
Rather save money and wait, when we are witness of the worst world-wide economy situation.
Never hold you money at any exchanges ;- )
Charted some fractal bars but that means nothing if you can't predict time frames.
Yours Emvo.
*This is not any financial advice.
$SPLK Lets get a LONG and Cash inLooks Like an Amazing Long
I will let it hit the $70s again, because
than i can see if it's still a HIGHER LOW before I get in LONG
WHERE IS THE BITCOIN BOTTOM?? IS IT ALREADY IN??So the FTX mess really destroyed the potential that crypto had to rally. The DXY broke down as we predicted hitting our third target on Friday, letting the stocks and currencies rally against the dollar.
However, crypto was left out of this rally because of the FTX mess. So where is the next opportunity??
After not holding 19600 and breaking the 18500 support that we held for over a month, BTC looks to head lower and is in the middle of nowhere.
- As long as we're below 18500- 19600 we are bearish until we reach 12200- 13000. THERE IS NOTHING IN BETWEEN, any long from here would be pure gambling and not a profitable strategy in the long run. \
WHAT TO DO?
- Hold on to your money until a trade opportunity arises, which will either be a bullish edge at around 12k or a bearish edge between 18500-19600.
Moreover,
- We have massive support as shown around 12k. We also have the PCZ of a massive bullish sark around 11.2k, where we could wick to should we head to 12k.
reversal in long trend is incoming 🔥hello my friend's I hope you all doing grate.
in the BTC chart 📊 I see that big money is now collect the liquidity that its seeking for and whenever is that happening usually ends up with changes with shift in market structure in long term trend.
so if u don't have any Bitcoin now I the time to buy otherwise u might end up with regret.
cheers 🥂 to all traders around the world
An easy way to lower the risk profile of your stock portfolioThe correlation between Visa and Mastercard creates an interesting investment trick.
I began this analysis not even looking for the correlation between these two companies' stock prices. But rather I was looking for some chart patterns using a stock screener. At the top of the list, these two companies emerged. As usual, I was going to go through the stock charts of all the companies in the list briefly to determine if they hold any chart pattern merit.
However, as I scanned over Visa, and then Mastercard, I noticed they looked extremely similar. Weird. I then opened up Tradingview and put these stocks in. Side by side they look the same.
These two companies have very similar price movements. No surprise, they are very similar companies. They are direct competitors. They are both big players in the global credit services market. Transacting trillions of dollars in total payments volumes per year. They’re both tech companies that connect the consumer and the merchant digitally for transactions. They have been seen as rivals for over a decade now. Neither Visa nor Mastercard are involved in extending credit or issuing cards. They work in a co-branded relationship with the card provider. That's why you will see their logos on your credit card but won’t see a full absolute Mastercard/Visa credit card.
Visa is generally larger in terms of the transaction, purchase volume and cards in circulation. However, Mastercard growth has been picking up and may see a catch-up.
Now let’s get back to the price movement analysis. I have split this up into three time periods and then done a Pearson Correlation Test. The first period is the matched IPO date to the current date. The next is the last 5 years and then the last 2 years.
The reason for the three time periods is simple. I want to do a full IPO to current date analysis to get the full picture and long-term perspective. A 5-year analysis because if you look at the charts above, that’s when the volatility in the stocks picks up. The last 2 years, because if you look again at the charts above, some crazy price movements have been occurring in the last two years that do not follow the past 14-year trend.
The closer to +1, the closer the correlation.
March 2008 - Nov 2022: 0.83
Nov 2017 - Nov 2022: 0.92
Nov 2020 - Nov 2022: 0.90
As you can see from the above stats both of these stocks have a close relationship with each other. A higher correlation in recent years. Of course, correlation doesn’t mean causation. However, the fact that these two companies are very similar and direct competitors means that one could form a reasonable conclusion. Not that one stock is affecting the other price. But rather than investors see these two companies as very similar. Such that when they exit one, they exit the other. Unless there is a big reason not to. But as you can see from the stats above. The stocks have a close correlation over the last 14 years such that even if one says that, let, for example, Visa is going to grow faster than Mastercard, the chances are - Mastercard wouldn’t be far behind.
Henceforth, this leads to an interesting investment tip:
Let’s say you want to diversify your portfolio by gaining some exposure to the credit services industry. Since Visa and Mastercard are the two leading companies, you chose them. However, you only have enough money to invest in one. But you also want to lower the risk profile of your portfolio. Is there a way both can be done?
The answer is yes, since Visa and Mastercard have such a close correlation and are very big established companies they will most likely follow each other in price movement. Also, since they are two different companies, you will be diversifying your investment and will be lowering your risk. So, you divide that last portion of your portfolio into two smaller portions and buy Visa and Mastercard 50:50. This will mean you get the exposure you are after, the returns as well since they have a close correlation, and the risk is lowered since they are two separate companies. Quite a cool trick is not it?
I created three different portfolios. Each beginning with $10,000. I invested the full out in two of them into Visa and Mastercard. The last portfolio had a 50:50 split. I then calculated the standard daily deviation and the annualized standard deviation. Here are the results:
Visa 100%:
Start value: $10,000
End value: $137,295.57
Annualized STD: 29.60%
Mastercard 100%:
Start value: $10,000
End value: $151,466.00
Annualized STD: 32.30%
Visa 50% Mastercard 50%:
Start value: $10,000
End value: $144,380.79
Annualized STD: 29.50%
As you can see from the above stats, once the two stocks have been combined the standard deviation drops by 8.67% and the standard deviation is lower than the two stocks individually. This means the risk is lower. However, yes, the final value isn’t as high as the Mastercard 100% the returns are higher than the sole Visa 100% portfolio by 5.10%. So, in other words, the risk has been lowered than if you had individual portfolios and the returns are higher as well. Of course, the returns aren’t as high as they are in the Mastercard 100% portfolio, but the risk is lower while still ensuring higher returns. This means the Visa 50% Mastercard 50% portfolio provides an effective way to reduce risk while increasing returns.
However, one thing to note is the maximum drawdown was the lowest in the Mastercard 100% portfolio. The second lowest is Visa 50% Mastercard 50%. Highest in Visa 50%. So, ensure that if you are going to follow this strategy, there is more research to be done and it is best worked in a long-term investment strategy possibly combined with dollar cost averaging.
To conclude, if you want to see a higher return while lowering the risk profile of your portfolio. It pays to diversify with similar correlating assets.