Anyone have any thoughts on COIN for a longer term hold? I am having a hard time pulling the trigger, and so far that has paid off, but wondering if today is going to be a rough low, or further down they go?
I ended up taking 1000shs 258.43 avg not long after typing on what looked like another push. Since I am not over all comfortable I took off 900 shs at 263. So after taxes I have more room if I go into pain with the last 100shs. I'll probably sell calls against the last 100shs as time goes by. I debated holding the whole position, but saw a quick profit which locked in a win and freed up cash for other long term holds I am looking at.
Not trading stocks anymore but I think COIN is a good long term hold. They currently custodian 11% of all crypto. It's a commission generating machine. I've been buying FTT the native token of https://ftx.com/ Some as a swing till their Superbowl ad comes out and some for a long term hold. I also own KCS, WRX, BNB, GT, MX wich are all crypto exchange tokens. Riding the picks, shovels and gold pans play. By my eyes, COIN is at a good level to start averaging into a position for a longer term play. Obviously it's price is highly dependent on Bitcoin.
What is the advantage of a long term hold? Why would you hold a stock that is moving against you? I personally have a rule that I don't hold any losers in my portfolio.
I have a point of pain where I'll get out, but depending on what is going on in the overall market and the stock I may hold or add if I plan on being in for awhile and think we are in a temporary setback for whatever reason. For example NVDA I had picked up pre split at 125, and added more at 225, it pulled back into the 170-180 area after a run to the 300 area, but I saw no reason to get out as the company was on fire, but the markets were in worry mode. It was a definite pay off, and still holding after taking a small partial recently. PYPL is another I have been in for a longer time, but in this case I took a partial after the news about them trying to buy ETSY, I think it was ETSY, then decided to drop the rest when it popped back up. Now I am out, but debating picking a smaller position to get back with it after this last wipe out. Still a solid company to me.
Crypto is 'one of the biggest bubbles ever': Strategist Ines Ferré ·Markets Reporter Mon, December 6, 2021, 10:53 PM When it comes to cryptocurrency, financial adviser Ryan Payne agreed with billionaire Charlie Munger when he said, "This era is even crazier than the dot-com era." "This whole Bitcoin (BTC-USD) thing — this whole cryptocurrency — is one of the biggest bubbles ever," Payne, president of Payne Capital Management, told Yahoo Finance live on Friday. "I do think that bubble is eventually going to burst. It's going to be ugly," he added. The global crypto market "is somewhere over $2 trillion. When the dot-com bubble burst, those dot-com stocks where worth like half a billion dollars. Inflation adjusted that's like $1 trillion in today's dollars. Most of those stocks became worthless," said Payne. ____________________________________________________________ nothing will ever scare cryptocurrency investors.
I don't discount Munger and his knowledge, but he and Warren have been far from always correct. I do agree with the idea the crypto currency fad may take a huge hit at some point, and not recover to whatever the peak level is before that hit, but the idea is ride a fad with the knowledge to bail when the tipping point hits, and have enough profits in the bank going into it that you aren't losing anything but some of the profits. I can see countries turning their own currencies into a crypto format, but making it trackable to the government of course. People won't like that aspect, but it makes it more viable as a business tool than the current crypto. The blockchain concepts will start to find more uses, but the phony(my words) currencies probably fade. Munger and Buffet could easily see the benefits of tech and how it was being adopted in their own businesses, yet because it wasn't something they understood they didn't start investing strongly in it until later, but profitably. Think if these guys had listened to the people in their firm who were most likley pitching investing in AAPL, AMZN, etc long before they finally did. The wealth of their funds would be astronmical, not that they aren't now, but even more so. Stubborness prevented them seeing the huge opportunity. My 2 cents, and wishing I had kept that other 900shares of COIN today. Uggg
The main problem with COIN is it just shadows the performance of BTC and the other is that it makes huge margins right now because of commission trades but why won't the commissions go to zero like everything else has? Its already cheaper to trade the cryptos that Robinhood sells -- of course they don't have the full range of products like Coinbase. I guess if COIN becomes like the CME or ICE it would do well.