Earlier quoted context omitted.
Do you want him to lose every dollar? Most penny stocks are garbage. Generally low volume, occasional pump-and-dump scams, fake news from paid stock promoters, etc.
So you’re saying it great practice! Do a study on the survival rate of the average AngelList offer. I didn’t say penny stocks. You can try names you know and like: SMAR, SSTI, PS, etc
Ask HN: Getting Started Investing
41–50 of 100 posts
Re: Ask HN: Getting Started Investing
#42Earlier quoted context omitted.
So you’re saying it great practice! Do a study on the survival rate of the average AngelList offer. I didn’t say penny stocks. You can try names you know and like: SMAR, SSTI, PS, etc
You did say micro cap though. The ones you list are really small caps...
Re: Ask HN: Getting Started Investing
#43Do you really want to invest in early stage, high risk ventures that have a low probability of return? Open a Vanguard or Fidelity account. Buy index funds. Invest regularly. In 10 - 15 years you'll have a small fortune.
More specifically, if you invest $150k per year for 15 years and get a 7% return, you'll end up with right around $4 million.
Re: Ask HN: Getting Started Investing
#44Do you want to invest, or to gamble? At your level of available funds, investing in startups is gambling, because you can’t spread your bets widely enough to hedge them and increase the likelihood that gains on one will make up for the losses or break-even on the rest. If you want to invest , I recommend index funds.
What does hedging mean in startup investing? I'm used to the meaning in securities where you take an inverse position to limit losses.
Re: Ask HN: Getting Started Investing
#45Do you want to invest, or to gamble? At your level of available funds, investing in startups is gambling, because you can’t spread your bets widely enough to hedge them and increase the likelihood that gains on one will make up for the losses or break-even on the rest. If you want to invest , I recommend index funds.
> you can’t spread your bets widely enough to hedge them What does hedging mean in startup investing? I'm used to the meaning in securities where you take an inverse position to limit losses.
Re: Ask HN: Getting Started Investing
#46Earlier quoted context omitted.
Contrary to the stock market, Bitcoin _is_ a zero sum game.
Could you expand on that please?
Re: Ask HN: Getting Started Investing
#47Earlier quoted context omitted.
Sounds like it's just a problem of identifying arbitrage opportunities then. I.e. the problem isn't actually that there isn't enough places to put money. The problem is identifying systemic biases in the investor landscape (e.g. a bias against diversity, as just one potential example).
This might be related but I think the bigger arb opportunity is looking outside of SF/NYC. There are some PE funds operating in the Midwest and doing great, but I think it’s still pretty difficult to find early/growth equity funding.
Re: Ask HN: Getting Started Investing
#48Do you really want to invest in early stage, high risk ventures that have a low probability of return? Open a Vanguard or Fidelity account. Buy index funds. Invest regularly. In 10 - 15 years you'll have a small fortune.
Re: Ask HN: Getting Started Investing
#49Eventually you will find the other angel investors in your area, and collaborate with them.
$100k is probably enough to build a small software product, especially if you can find a tech co-founder who is putting in sweat equity. The process of doing this will teach you a lot even if you never make back the $100k.
Re: Ask HN: Getting Started Investing
#50Do you really want to invest in early stage, high risk ventures that have a low probability of return? Open a Vanguard or Fidelity account. Buy index funds. Invest regularly. In 10 - 15 years you'll have a small fortune.
> In 10 - 15 years you'll have a small fortune. More specifically, if you invest $150k per year for 15 years and get a 7% return, you'll end up with right around $4 million.