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Author Topic: There is no certainty in trading  (Read 1482 times)
JooBra
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February 08, 2021, 11:41:17 AM
 #141

I also think that this applies to stocks as well or in investing in general as we rely on probabilities. If there is any absolute guarantee on the results of something, then most probably, all of us would have been rich at this point.

Trading cryptocurrencies rely heavily on its volatility on the market. With its supply and demand, its price may change without any notice. I remember, I have an acquaintance who traded bitcoin as his primary job. Although he earns big amounts of return, he also losses big since the amount he wagers is around 10-20 btc per transaction.
For stock market it is not the same, because at the end of the day in stock market you end up with a company and a stock based on that company, so it is not just "probabilities" there. Of course the market could crash out of nowhere for no reason at all, or we could have a horrible day for a company where there is a big fire in the building and it sets the business back for a while, etc etc those type of things are quite possible and definitely valid in many places.

However most of the time there is a company, that company does a business, it grows big and big, and the stock price goes bigger and bigger and that is about it, that is the end of the story. Sometimes there are crashes, sometimes there are companies that bankrupts and so forth, but they are rarely unpredictable, it is almost always predictable and thats why I think it is not like crypto.
I think crypto will move in that direction. Me personally invest in projects that have use and something behind them and with that in mind I can expect what the project will offer in future. Now the scale of it now is a lot smaller than big companies with stocks but also bigger potential to grow. In crypto if you are lucky you can get x100 or more return. At the end it's new market and it can bring you more but most of times loose more.
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February 08, 2021, 12:24:03 PM
 #142

We have to agree to the reality in crypto trading. There are no astronomical guaranteed returns in cryptocurrency trading, and that’s a fact! No matter how skilled you are in trading from beginner to expert, there are no certainties in terms of price movement because anything could happen in an unexpected way, especially when the price goes down.

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