It’s impossible to know where Ethereum will go but it is currently right at its 200 day moving average. The last two times it did this it bounced off it and continued higher. I don’t know if it will go higher or lower but I think the odds are in favor of it being a good buying opportunity.
I was introduced to Robert Kiyosaki’s material as a child, and it did inspire me in some ways. Like most people he is neither all good or all bad. However, over the years I am less and less impressed with him.
A reddit user recently uploaded a tweet of his from June 2022 where he says quote
Best INVESTMENT: Cans of Tuna Fish. Inflation about to take off. Best Investments are cans of tuna & baked beans. You can’t eat gold, silver, or Bitcoin. You can eat cans of tuna and baked beans. Food most important. Starvation next problem. Invest in the solution. Take care.
Robert Kiyosaki on Twitter Jun 12, 2022
If you have already checked the answer key he was either way wrong or way too early. I’m not opposed to the idea the apocalypse is coming – I’m just opposed to the idea that someone can predict it if it is. As I like to say a broken clock is right twice a day so if an apocalypse does happen it will have been “predicted” since there are always people calling for one.
Just to document how wrong he was take a look at the image below.
I want to be very clear, it is okay to be wrong about the market but your delivery matters.
Saying “I think inflation is likely to go higher because of x, y, and z” is not the same as saying “inflation is about to take off!”
Sometimes I run into futures traders that act as though futures leverage is “free.” Aside from the risk of using leverage there is no free lunch and it isn’t ever free. Below I have taken the relationship between the front and second month E-Mini futures and converted it to an annual interest rate. The data source is a bit sporadic, but you can quickly see it follows the pattern of the fed funds interest rate. There is likely a similar relationship with spot and the front contract but because of the data feed, the second and front are much easier to graph.
Leveraged ETFs, my friend, are like roller coasters for your portfolio—only the highs are higher, and the lows might give you a wedgie. If you’ve got the risk tolerance of a daredevil and a time horizon that stretches longer than an ‘80s rock ballad, then these bad boys might just be your cup of adrenaline-infused tea. But, fair warning, buckle up and hold on tight because we’re about to dive into the wild world of leveraged ETFs, where rewards and risks collide like two clumsy synchronized swimmers.
Now, picture this: You’re sitting at your trading desk, your cape of bravado billowing behind you. You want more than just average returns; you want to make those profits scream “Whee!” as they fly sky-high. Leveraged ETFs can make that happen. With their fancy financial magic tricks and leverage powers, they aim to deliver double or even triple the daily performance of their underlying index. That means if the market goes your way, your returns will be dancing like nobody’s watching.
For the adventurers among us, leveraged ETFs can be the Holy Grail of portfolio performance. They’re like turbo boosters strapped to your investments, propelling them towards the moon. So, if you believe that certain sectors or indexes are destined for greatness, these funds can be your secret weapon to harness those gains and pump up your portfolio like a ’90s workout video.
But, hey, remember the rule of thumb: the greater the rewards, the higher the risks. And leveraged ETFs are no exception. They’re like that one friend who always takes things a bit too far—sure, they might bring excitement to the party, but they can also make your stomach churn like a tilt-a-whirl gone rogue.
One risk you gotta watch out for is amplified losses. Just as leveraged ETFs can multiply your gains, they can do the same for your losses. A prolonged downturn in the market could eat away at your investment like a pack of seagulls at a beachside picnic. So, it’s important to keep an eye on these funds like you’re guarding the last slice of pizza at a party—you don’t want to lose it!
Oh, and let’s not forget about tracking errors. These sneaky buggers can throw a wrench in your plans. Sometimes leveraged ETFs don’t quite track the intended multiple of the underlying index, resulting in surprises that are about as welcome as a mosquito at a summer barbecue. It’s like trying to follow a GPS that keeps taking you to the wrong destinations—frustrating, right?
Lastly, brace yourself for the volatility roller coaster. Leveraged ETFs are known for their wild price swings, making your heart race faster than a caffeine-infused cheetah. If you’re not prepared for these ups and downs, you might find yourself on a wild ride of emotions, shouting, “I regret everything!” faster than you can say “sell, sell, sell!”
So, my fearless friend, if you’re considering leveraged ETFs, remember to approach them with caution. Understand their mechanics, actively manage your positions, and keep an eye on your stomach as you navigate the twists and turns. And if you’re feeling overwhelmed, don’t hesitate to seek guidance from a financial advisor—they’re like the seatbelt to your investment roller coaster, keeping you secure and helping you enjoy the ride.
But hey, in the end, investing should be a mix of excitement and prudence, like trying to eat a hot dog without getting ketchup on your white shirt. So, embrace the risks, enjoy the potential rewards, and remember, even in the world of leveraged ETFs, a little laughter and a good sense of humor can go a long way.
This is not investment advice for you. This website is designed to talk about investments but it is not designed to give you personalized investment advice. This site contains generic information that does not have the capability of taking your personal risk tolerance, goals, assets, or other factors into account. Therefore, this site and all of its related content is for entertainment, informational, and educational purposes only.
The owner of PatienceToInvest.com is also a trade leader on Collective2.com. We may receive compensation by promoting some collective2 strategies over others. Should you decide to make or avoid any investments or use any service due to the information on this site or related information you assume full responsibility and risks and will not hold howiinvest.com it’s associated sites or its owners responsible. You also acknowledge investing is risky and can result in the loss of all your capital and even more than your original capital in some cases.
This post was written with the assistance of ChatGPT.
Today I checked to see whether it was better to use Rocketpool or Uniswap to get rETH. I had to get way down in the decimals to see that Uniswap seemed slightly better. I got about 0.22% more rETH per ETH sent to Uniswap vs Rocketpool. This is a pretty minor difference, but certainly worth taking advantage of in the future.
The best way to reduce costs when converting from ETH to rETH seems to be waiting for network fees to be low. I did the transactions when the gas market was at about 32 gwei (cost of transactions). As can be seen in the ultrasound.money chart below. That was close to the low of the last 1 day and nearly 1/4 of what it would have been to do yesterday at a different time. Another key to consider is trying to minimize taxes. Perhaps the most effective thing to do is try and convert the ETH I have with the highest cost basis to reduce realized capital gains in the conversion. The other item to consider is reducing transactions by doing larger batches when possible.
This is not investment advice for you. This website is designed to talk about investments but it is not designed to give you personalized investment advice. This site contains generic information that does not have the capability of taking your personal risk tolerance, goals, assets, or other factors into account. Therefore, this site and all of its related content is for entertainment, informational, and educational purposes only.
The owner of PatienceToInvest.com is also a trade leader on Collective2.com. We may receive compensation by promoting some collective2 strategies over others. Should you decide to make or avoid any investments or use any service due to the information on this site or related information you assume full responsibility and risks and will not hold howiinvest.com it’s associated sites or its owners responsible. You also acknowledge investing is risky and can result in the loss of all your capital and even more than your original capital in some cases.
Staking crypto is something I haven’t really dabbled in much before now. However, I have some ETH (Ethereum) that I plan to hold for a long period of time. Admittedly, I don’t know where ETH will go in terms of dollars. However, I like that ETH is a very green crypto since it has reduced its carbon emissions by 99.5%. I don’t know where crypto will go. I think a big part of how well it does will depend on government regulations, etc. However, even if things stayed as they are, I believe the long-term inflation rate for the USD may be around 2%. That seems reasonable since the Fed keeps stating that as their goal. Additionally, ETH will have an estimated burn rate (deflation) of 1.8% per year. Plus, if I allocate my ETH to a staking pool, such as the ones listed here, I may be able to earn about 3% (as of now) in additional ETH control.
Obviously, if ETH does terribly in the future due to some problem with quantum computing or being replaced by some other crypto, these yields won’t help much. However, I think the odds are not too bad for ETH to have moderate to large success over the next 10 years.
As far as purchasing the ETH, I already have it. I don’t have enough or the expertise to run my own node/validator at this time. So, I have been looking at Lido and Rocketpool. From my analysis, it seems Rocketpool is a better choice, better for the ETH community, and has a tax structure that will prevent me from having to realize yield income each year for taxes. Essentially, I can exchange my ETH for rETH, which has a dynamic conversion factor to ETH. At this time, the ETH I plan to use is not in a large unrealized profit position. Therefore, I won’t have to realize a large amount of taxable income to convert to rETH. Then, when I eventually have funds I want to spend, I can set the rETH for ETH under long-term capital gains rates.
I love that with BTC, ETH, and rETH it is possible to take full custody of them and not have exposure to an exchange like FTX or Coinbase. I have been in crypto since about 2017. I have seen massive runs up and down. I have done pretty well overall, but I think it may be time to carve out a section of my portfolio that is primarily a buy and hold venture.
I will likely try and see if I can get lower fees to convert to rETH either by using Uniswap or going directly to rocketpool. I will also be checking to see if I can get lower fees by waiting for a weekend or low demand time period. So I likely won’t make any swaps yet. I am still in the research phase, but I will likely start to get a crypto position that I intend to keep in crypto whether that is BTC, ETH, stablecoins etc. I like the idea of having a part of my net worth in an permissionless access vehicle that also isn’t stored in my home.
| RocketPool (estimated Prices now) | Uniswap (estimated prices now) | |
| ETH | 1 | 1 |
| rETH | 0.93684 | 0.93646 |
| Transaction Cost | 0.02360 ETH | 0.00813017 ETH |
| Transaction Cost a few hours later (after original post) | 0.01640 ETH | 0.00433 ETH |
This is not investment advice for you. This website is designed to talk about investments but it is not designed to give you personalized investment advice. This site contains generic information that does not have the capability of taking your personal risk tolerance, goals, assets, or other factors into account. Therefore, this site and all of its related content is for entertainment, informational, and educational purposes only.
The owner of PatienceToInvest.com is also a trade leader on Collective2.com. We may receive compensation by promoting some collective2 strategies over others. Should you decide to make or avoid any investments or use any service due to the information on this site or related information you assume full responsibility and risks and will not hold howiinvest.com it’s associated sites or its owners responsible. You also acknowledge investing is risky and can result in the loss of all your capital and even more than your original capital in some cases.
If you want to avoid losing your money in a crash like the one Ark 1 experienced in the image below you should consider the following steps.
Some strategies on collective2 are built purely on hypothetical data. Others are built on actual trade data compiled from the trade leader’s account and/or subscribers. It may seem like simulated data is enough. In some cases it is. However, there are some significant difference. If you don’t know how to tell if simulated data is reliable, then I would disregard all trades that don’t have AutoTrade history as demonstrated in the images below.
It has become very easy to check for leverage use on collective2. I am very happy about that. Per the screenshot below you want to be checking that there are not massive spikes in leverage use and that the overall leverage use isn’t excessive.
This is not investment advice for you. This website is designed to talk about investments but it is not designed to give you personalized investment advice. This site contains generic information that does not have the capability of taking your personal risk tolerance, goals, assets, or other factors into account. Therefore, this site and all of its related content is for entertainment, informational, and educational purposes only.
The owner of PatienceToInvest.com is also a trade leader on Collective2.com. We may receive compensation by promoting some collective2 strategies over others. Should you decide to make or avoid any investments or use any service due to the information on this site or related information you assume full responsibility and risks and will not hold howiinvest.com it’s associated sites or its owners responsible. You also acknowledge investing is risky and can result in the loss of all your capital and even more than your original capital in some cases.
How can you know with a high level of certainty that a C2 strategy will explode. Since C2 is semi-anonymous it is hard to know exactly when a bad trader has just recreated a strategy. Well the first think you need to know is that previous performance doesn’t mean much. For example back in March 2022 I came across this strategy that had fantastic returns, but I warned it would likely crash. It took about 8 months for my prediction to come true. When Ark 1 apparently took a nose dive in the fall of 2022 you could have avoided that by following a few simple rules that I hold to when investing. If you want to know more about those rules check out my next post.
This is not investment advice for you. This website is designed to talk about investments but it is not designed to give you personalized investment advice. This site contains generic information that does not have the capability of taking your personal risk tolerance, goals, assets, or other factors into account. Therefore, this site and all of its related content is for entertainment, informational, and educational purposes only.
The owner of PatienceToInvest.com is also a trade leader on Collective2.com. We may receive compensation by promoting some collective2 strategies over others. Should you decide to make or avoid any investments or use any service due to the information on this site or related information you assume full responsibility and risks and will not hold howiinvest.com it’s associated sites or its owners responsible. You also acknowledge investing is risky and can result in the loss of all your capital and even more than your original capital in some cases.
Truthis is the strategy of the week for collective2.com. This strategy is likely not one I would personally be willing to copy with my own money.
As I have previously said, when strategies have huge spikes in leverage I typically don’t think they make good long-term strategies. This is because by taking such large amounts of risk it can easily cause a 100% or near 100% drop in the account value. I expect that this strategy will likely experience a very large drop causing most to abandon it or to reduce the leverage use and use the early gains as good marketing. At this time the strategy is currently a part of the C2 start system which essentially means it hasn’t exceeded certain drawdown amounts. I find it hard to believe this could last with this level of leverage.
All that said I will be watching to see how the user fairs in making Truthis succeed. Who knows? Anything could happen, but the odds are not good in my opinion.
The chart below will provide live updates of the strategy going forward.
This is not investment advice for you. This website is designed to talk about investments but it is not designed to give you personalized investment advice. This site contains generic information that does not have the capability of taking your personal risk tolerance, goals, assets, or other factors into account. Therefore, this site and all of its related content is for entertainment, informational, and educational purposes only.
The owner of PatienceToInvest.com is also a trade leader on Collective2.com. We may receive compensation by promoting some collective2 strategies over others. Should you decide to make or avoid any investments or use any service due to the information on this site or related information you assume full responsibility and risks and will not hold howiinvest.com it’s associated sites or its owners responsible. You also acknowledge investing is risky and can result in the loss of all your capital and even more than your original capital in some cases.
When in doubt, zoom out. This compiles the data from SPX and SP500 dividend yield from two different sources to show the growth of a simple buy, hold, reinvest strategy.
SPX Data was from Tradingview. SP500 Dividend Yield was from Tradingview/Quandl
This is not investment advice for you. This website is designed to talk about investments but it is not designed to give you personalized investment advice. This site contains generic information that does not have the capability of taking your personal risk tolerance, goals, assets, or other factors into account. Therefore, this site and all of its related content is for entertainment, informational, and educational purposes only.
The owner of PatienceToInvest.com is also a trade leader on Collective2.com. We may receive compensation by promoting some collective2 strategies over others. Should you decide to make or avoid any investments or use any service due to the information on this site or related information you assume full responsibility and risks and will not hold howiinvest.com it’s associated sites or its owners responsible. You also acknowledge investing is risky and can result in the loss of all your capital and even more than your original capital in some cases.
How I Invest 