- Written by OptionDave
As I sit here reading the latest headlines, I just have to shake my head and wonder how it is we got ourselves back to this place again. Years back, the Real Estate Market was booming. It was a No Lose Investment... and EVERYONE was jumping onboard. And then the inevitable happened, it collapsed. While we could sit here and dissect why this happened, how it could have been prevented, etc., I feel it is more important to ask ourselves "how can we avoid this happening to us in the future". Well, the answer is actually quite simple.
Don't Be Greedy!
The top 3 items in the news today are Bitcoin, Marijuana and WhatsApp. What do these all have in common? Really? They are ALL way overpriced and overhyped, are they not? Now, some of you are immediately going into defense mode right about now. You are coming up with excuse after excuse as to why these are all great investments, and how they are all worth the money. But are they?
Anytime you have the potential to make the kind of return we could from such investments as Bitcoin, you have to understand there is tremendous risk. People are learning that today as one of the largest Bitcoin Brokers just shut their doors and took their client's money. Bitcoin's rate plummeted 30% in value. So, was it worth it? Was it a great investment?
Whenever I talk to the average person about investments, inevitably one of these topics will come up. No one would be happy with making 39% YTD as we have at ETNtrade trading companies like Home Depot, Macys, Target, etc. No, they all want the next great home run. Well, Home Run Hitters don't always hit home runs do they? They strike out quite a few times. They also pop out all the time. The same applies here. Why always look for the next "big hype" when we can trade conservatively, trade solid, proven companies, and at the same time get results that would rival the promised return from many of these high flyers.
Everyone take a deep breath as settle down. Don't get caught up in the hype. I promise that for every one Google, there are 99+ companies you never heard of because they went to 0. Don't be the person kicking yourself 5 years from now wondering why you invested in yet another overhyped, overvalued investment. Be smart, be conservative, make money! If you don't know how, let us help... Just ask!