Re:310 Bitcoin challenge has been solved
by Retric on Thursday October 11, 2018 @09:44PM
(#18198483)
Some of this is bound by the size of the investment. Sub 10,000$ returns are not going to change your life, but when you can start cashing in the equivalent of your annual salary not taking money off the table gets risky.
At that point think of it as a math problem.
Suppose you own a stock that’s never going to issue a dividend, but will do buybacks until eventually the company fails. In such situations you can expect 0-X doublings and a final price of zero.
Now, what strategy works best depends on X, buy and hold is clearly a losing strategy in all situations. Further you don’t know X but you can come up with a reasonable bounds as nothing is going to be worth say 10^30$.
Another approach is to simply constantly sell a fixed percentage each month. That’s very useful if you only have one large investment that does not nessisarily fail, just stop growing exponentially.
At that point think of it as a math problem.
Suppose you own a stock that’s never going to issue a dividend, but will do buybacks until eventually the company fails. In such situations you can expect 0-X doublings and a final price of zero.
Now, what strategy works best depends on X, buy and hold is clearly a losing strategy in all situations. Further you don’t know X but you can come up with a reasonable bounds as nothing is going to be worth say 10^30$.
Another approach is to simply constantly sell a fixed percentage each month. That’s very useful if you only have one large investment that does not nessisarily fail, just stop growing exponentially.