Practicing diversification is an admission of ignorance. Before

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Anonymous
2017-09-13 08:28:53 Post No. 3462466
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Anonymous 2017-09-13 08:28:53 Post No. 3462466 [Report]

Practicing diversification is an admission of ignorance. Before I raise your eyebrows too high let me explain.
Consider all the coins that are included in the top 50 on coinmarketcap - in the next year one of those coins, and only one, will have the highest return of all. This one coin would beat every well-diversified portfolio.

If we can achieve higher wealth through a one-coin investment, then why has portfolio theory been so widely accepted? The answer goes back to our assumptions about our own clairvoyance or knowledge; if we feel truly ignorant, then broad diversification makes sense. If we are confident about our ability to forecast then we will select a less-diversified portfolio.

Anonymous 2017-09-13 08:29:49 Post No.3462473
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Anonymous 2017-09-13 08:29:49 Post No.3462473 [Report]

>>3462466
The monkey at the desk is me.

Anonymous 2017-09-13 08:29:56 Post No.3462474
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Anonymous 2017-09-13 08:29:56 Post No.3462474 [Report]

>>3462466
OMG right?

Anonymous 2017-09-13 08:31:53 Post No.3462503
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Anonymous 2017-09-13 08:31:53 Post No.3462503 [Report]

>>3462466
Also
>pick wrong coin
>stay poor

>diversify
>still gain money from your small investment in that one coin

For all the dummies out there who don't understand.

Anonymous 2017-09-13 08:33:29 Post No.3462525
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Anonymous 2017-09-13 08:33:29 Post No.3462525 [Report]

>>3462503
Right but that assumes you can't tell that pretty much all the alt coins are shit.

Since I CAN tell that, I'm not going to waste money on shit like WTC and 0x.

All in OMG since that's the only alt coin I can actually see giving life changing returns

Anonymous 2017-09-13 08:37:57 Post No.3462568
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Anonymous 2017-09-13 08:37:57 Post No.3462568 [Report]

>>3462525
why don't you, instead, daytrade like 50 different coins, recycling the profits back into one another?

Anonymous 2017-09-13 08:46:16 Post No.3462670
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Anonymous 2017-09-13 08:46:16 Post No.3462670 [Report]

>>3462525
First of all you can't choose the perfect 1/50 coin with a decent rate of success, so you will be loser because of mathematics.

Second, even if you do choose a "great coin", a shitcoin can still create a frenzy, pump and deliver even better gains. The markets are far from reasonable.

Anonymous 2017-09-13 08:50:25 Post No.3462707
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Anonymous 2017-09-13 08:50:25 Post No.3462707 [Report]

>>3462525
Same with me. Literally the only coin with an actual company combined with incredibly intelligent advisors and competent marketing/managment.

Anonymous 2017-09-13 08:59:39 Post No.3462795
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Anonymous 2017-09-13 08:59:39 Post No.3462795 [Report]

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>>3462525
>0x
>shit

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I'm aware that Imgur.com will stop allowing adult images since 15th of May. I'm taking actions to backup as much data as possible.
Read more on this topic here - https://archived.moe/talk/thread/1694/