I've been trading for 10 years
And I don't hold any long-term stocks/cryptos
Here's why:🧵
Looking to invest in cash-flow generating businesses
The main reason I don't hold stock is because of the opportunity cost
I'm relatively young and I am not looking to get rich in 30 years
I could set up a portfolio and get 20-30% a year with my knowledge on cryptos/stocks passively trading it
However, there's a lot more that I could do with my money that just makes more sense
One of them is real estate
A typical real estate can net you a 10% per year ROI
ON TOP of having 100% equity in a home 30 years from when I purchase
There's also the opportunity of Airbnbs.
I know some people who have made 90% of their initial investment the first year with Airbnbs.
That's rare, but there is still a good chance of making more than 30% per year (if you know what you're doing) with Airbnbs.
Aside from real estate, there are tons of small businesses that I could run.
Car washes, laundromats, vending machines, ATMs, etc.
All businesses that can produce way more than 10% a year and don't take up a lot of time
Plus they produce CASH FLOW
Startups
Startups have the opportunity to bring in much higher ROI then stocks
I'm building one right now and am expecting it to do much better then if I had just put the money in stocks
You could use the money to invest in other companies and potentially get a 100x return
I'm not saying investing in stocks is bad.
If you want to get rich in 30 years, put money in stocks every year and you'll do it
I'd just rather take a more aggressive approach and try and get rich earlier on in my life
I am in no way a financial advisor so please do your due diligence before trying anything mentioned in this thread
Trading vs Investing
For those investing in cryptos, how annoying that is to be 10X at your net worth ATH and then only be 2X or barely breakeven when the whole ecosystem drops by 90%+
I think holding is dumb and the worst choice possible
Even without a trading system, we know cryptos always fall 80%+ once every 4 years and we'll get a the candles ranging near the bottom for 1 year or 2.
Plus, if you buy after a mega dip and hold for more than 1 year, you'll pay less taxes on your capital gains - 15% for long-term capital gains vs 30% for short-term capital gains
Reminder that you don't invest because you want to see those startups building a better world.
You invest because you want to make more money and making YOUR world better
95% of startups fail and that number is even high with cryptos startups
Cheap vs Expensive
I'm an intraday trader mostly and I have no clue whether prices will go up or down weeks/months/years from now
But what I know is if an asset is cheap or expensive
WTI/USOIL was cheap below $30 and is expensive above $80 based on an inflation-adjusted chart
Bitcoin, Ethereum, Netflix, Zoom, .... certainly are interesting after a 80% dip
I'll hold cheap assets until they'll reach my EXPENSIVE zone
They will maybe go higher after I'll sell but I'll sell when they're expensive in the hope to buy them back later when they'll inevitably dip in the CHEAP zone