{"id":217997,"date":"2022-05-18T13:14:35","date_gmt":"2022-05-18T12:14:35","guid":{"rendered":"https:\/\/www.forexmentorpro.com\/blog\/?p=217997"},"modified":"2022-05-19T14:27:51","modified_gmt":"2022-05-19T13:27:51","slug":"some-perspective-crypto-stocks-metals","status":"publish","type":"post","link":"https:\/\/www.forexmentorpro.com\/blog\/some-perspective-crypto-stocks-metals\/","title":{"rendered":"Some Perspective & Crypto, Stocks & Metals"},"content":{"rendered":"

Hi, clearly being an investor in anything right now is very challenging, to say the very least. We are truly living through an extra-ordinary period. Crypto currencies & blockchain technology revolutionising the financial world and the way business is conducted in the future.<\/p>\n

The major changes to the internet that the metaverse will bring. Whilst at the same time a 2 year global pandemic, followed by a war in Europe and the knock on effects that is going to have on fuel commodities & worldwide food inflation.<\/p>\n

Hopefully, nothing else comes along at the moment.<\/p>\n

In today’s video I explain my take on the current situation.<\/p>\n

In the first segment,<\/strong> I look at perspective.<\/strong> We often hear the story of “if you had only invested $1000 in Amazon at its IPO in 1997 and held them<\/strong> (that’s the crucial part of the sentence) you would now be a multi-millionaire.”<\/p>\n

The statement is correct. However, unlike the arrow in the diagram below, the price did NOT go up in a straight line. In fact, it was a VERY bumpy ride.<\/p>\n

\"\"<\/p>\n

In the early years price dropped from an initial high of around $110 per share, right back down to just over $5. <\/strong><\/em><\/p>\n

So a 95% drop a few years after its launch. How many investors would have been willing to stomach that kind of drop?<\/p>\n

There were then numerous +50% drops in the following 20 years.<\/p>\n

The most recent drop of -45% of one of the most successful companies on the planet (which may have further to fall) is further testimony to the fact that crypto is not alone.<\/p>\n

\"\"<\/p>\n

Gold:<\/strong> I experienced a similar journey with gold.<\/p>\n

I invested $10,000 in 2001 when it was at $380.<\/p>\n

I then watched it drop 15% and take over a year to get back to my initial buying price.<\/p>\n

After the 2008\/2009 crash, it peaked at a $1000.<\/p>\n

Had I stayed in all the way? No. There were many pullbacks along the way- see the video.<\/p>\n

Bitcoin<\/strong> is following a similar pattern- watch the video to see how close it is following Amazon’s trajectory in the early years!<\/strong><\/em><\/p>\n

Similarly, successful investors, especially those who put money into a revolutionary technology need strong stomachs. This is why since the beginning of this crypto journey I have stressed the importance of only risking money you can afford to lose & take profits periodically.<\/p>\n

In times of crisis, gold has always been the ultimate safe haven. At the moment that does not appear to be the case, but if things get worse economically I feel it’s a good place to have some cash allocated.<\/p>\n

This year I have also been converting \u20acuros & Gbp into $USD as a hedge.<\/p>\n

I have been longing the $ via forex trades.<\/p>\n

This is the first part of a video update that I posted for members of my crypto website.<\/p>\n

The rest of the content is only for them. It would not be fair to share it here, but I went on to discuss how I was investing in gold and other metals (mainly via mining stocks). Which conventional stocks I have taken small positions in, like Amazon I bought a few late last week (at a price I pointed out at FMP in a live session 6 months ago).<\/p>\n

DO I think stocks have hit a bottom yet? Probably not! But by taking small bites at each drop I hope to cost average in. Stocks are not a big part of my portfolio and the ones I do buy are generally with a multi year timeframe in mind.<\/p>\n

As I show in video and the notes above, its imperative to only risk money you can afford to lose and have a strong stomach and be able to not stress in the down periods.<\/p>\n

Finally to reinforce my stance. I NEVER use leverage on anything apart from forex.<\/p>\n

Best wishes<\/p>\n

Marc<\/p>\n