Investopedia stock simulator, new business idea, and what licenses and or certifications would I need?

[Fruitbat]

You are assuming that the rates for depositing one asset to borrow another are the same. Bad assumption.

so there’s a collateral asset?

That isn’t “getting paid to to have a mortgage”

that’s a swap. It’s not different to depositing borrowed money into stock portfolio, and using the returns to pay interest.

Quite a bit of sophistry going on here.

I see Biden has just ruled crypto is getting regulated.

 

[BackInTheGame78]

so there’s a collateral asset?

That isn’t “getting paid to to have a mortgage”

that’s a swap. It’s not different to depositing borrowed money into stock portfolio, and using the returns to pay interest.

Quite a bit of sophistry going on here.

I see Biden has just ruled crypto is getting regulated.

The difference is the APR is stable because it's a stable coin not a variable APR like the stock market.

By the time anything happens in the US it will be at least a year if not longer. Congress will likely step in as there are some very big crypto components there that do not want to see any innovation hampered and see it as a massive opportunity for a huge win over China

 

[Fruitbat]

The difference is the APR is stable because it's a stable coin not a variable APR like the stock market.

By the time anything happens in the US it will be at least a year if not longer. Congress will likely step in as there are some very big crypto components there that do not want to see any innovation hampered and see it as a massive opportunity for a huge win over China

An APR of 10% can’t currently be achieved without risk. It would be a disaster if this was possible.

Assets broadly get priced by:

Er = RF + B (Rm - Rf)

what this means in English is that assets need to beat the risk free rate. The risk free rate is what you’re describing above with stable coins - interest payments essentially without volatility.

If this is possible, this means that 95% of businesses can’t match this ROE or ROCE, as why would you invest in businesses that carry risk if you can make 10% interest in crypto.

To get to that 10% rate there must be significant risk. If there isn’t, if it’s genuinely risk free 10%(which is only really possible from a government with an army who can issue bonds and taxes) then the entire system of commerce grinds to a halt.

So, the crypto advocates will say, yes! Stocks and bonds are dead. Crypto is the way. Ok, so stocks are essentially discounted income streams to present value -ie they make and produce value over and above the purchase price. So what is this world that replaces it?

Tokens. Tokens of nominal value.

Blockchain will take over the administration of assets in the same way SETSQ and CREST took over settlement of trades, but the idea that this digital system of tokens could replace real assets just isn’t possible. It’s more the case that centralised administration will become decentralised.

 

[BackInTheGame78]

An APR of 10% can’t currently be achieved without risk. It would be a disaster if this was possible.

Assets broadly get priced by:

Er = RF + B (Rm - Rf)

what this means in English is that assets need to beat the risk free rate. The risk free rate is what you’re describing above with stable coins - interest payments essentially without volatility.

If this is possible, this means that 95% of businesses can’t match this ROE or ROCE, as why would you invest in businesses that carry risk if you can make 10% interest in crypto.

To get to that 10% rate there must be significant risk. If there isn’t, if it’s genuinely risk free 10%(which is only really possible from a government with an army who can issue bonds and taxes) then the entire system of commerce grinds to a halt.

So, the crypto advocates will say, yes! Stocks and bonds are dead. Crypto is the way. Ok, so stocks are essentially discounted income streams to present value -ie they make and produce value over and above the purchase price. So what is this world that replaces it?

Tokens. Tokens of nominal value.

Blockchain will take over the administration of assets in the same way SETSQ and CREST took over settlement of trades, but the idea that this digital system of tokens could replace real assets just isn’t possible. It’s more the case that centralised administration will become decentralised.

You will be on the wrong side of history. Crypto doesn't care about your theories.

 

[Fruitbat]

You will be on the wrong side of history. Crypto doesn't care about your theories.

interesting. 2 slogans.

Well, I’m convinced.

Facts aren’t theories, and slogans are no substitutes for facts.

 

[BackInTheGame78]

interesting. 2 slogans.

Well, I’m convinced.

Facts aren’t theories, and slogans are no substitutes for facts.

Cool. You do whatever, I'm permanently retiring in 6 months. Guess we will see who is right soon enough. Based on what I've done in the past 5 months even having made so many mistakes, I probably wouldn't bet against me.

 

[Fruitbat]

Cool. You do whatever, I'm permanently retiring in 6 months. Guess we will see who is right soon enough. Based on what I've done in the past 5 months even having made so many mistakes, I probably wouldn't bet against me.

Im not really sure what you mean as to “who is right”, I’ve openly said I think assets will digitalise.

You have a tough call to make as regards to retiring, as you’ll either have to stay in crypto or convert to fiat (which will kind of defeat the faith of your argument)

My penis is 12 inches by the way.

why not retire now? Is it based off the £230k BTC prediction or the £100k by the end of the year prediction?

 

[BackInTheGame78]

Im not really sure what you mean as to “who is right”, I’ve openly said I think assets will digitalise.

You have a tough call to make as regards to retiring, as you’ll either have to stay in crypto or convert to fiat (which will kind of defeat the faith of your argument)

My penis is 12 inches by the way.

why not retire now? Is it based off the £230k BTC prediction or the £100k by the end of the year prediction?

In a bear market I plan on putting my money in ArbiSmart which pretty much works in any market condition using arbitrage trades to generate big profits. At the amount I would be putting in, it would guarantee me a 40-45% APR, which I would then use to buy up assets on the cheap once it bottoms out and ride up the bull market again.

As to why I don't retire yet, it's because I make quite a bit of money as a software engineer and I have certain goals in mind that I haven't hit yet in regards to when it would make sense to retire. Plus the more money I have to continue putting into the market, the quicker that will be without having to take money out for expenses.

But I fully expect to get there within the next 6 months. I have some private sales I am invested in that I am expecting to go 100-150x based on previous similar projects

 

[Josh Davidson]

Update: I am currently in the top 4% of all players on investopedia's stock simulator. I think I want to do trading/financial/investment advisor work as a career. Where should I start: SIE exam, Series 3, or Series 63? I live in the United States.

 

[RickTheToad]

I am currently making 29.65% annual gains on my investopedia stock simulator account (fake money). I have a bachelor's degree in business economics which included several finances courses (1 course away from a minor in finance). I believe I could guarantee investors a 1.00% annual return on investment if they leave their money with me for a minimum of 1 year with no minimum or maximum on the amount of their investment (since I would be making a little over 28% ROI for myself).
What certificates and or licenses would I need to do this? I want to go into business for my self.
I have been on the simulator since September 22nd only 1 day did the S&P 500 outperform me!
If this seems like a good idea except that I am guaranteeing investors too small a percentage guarantee, what percent should I guarantee?
I want to do this all legally.

Series 6/63 possibly 65 and certainly a series 7 with a sponsoring broker. It's a long and difficult journey in being a licensed FINRA broker. In addition, no one will invest with you unless you have a proven track record with several years of experience.

 

[RickTheToad]

In a bear market I plan on putting my money in ArbiSmart which pretty much works in any market condition using arbitrage trades to generate big profits. At the amount I would be putting in, it would guarantee me a 40-45% APR, which I would then use to buy up assets on the cheap once it bottoms out and ride up the bull market again.

As to why I don't retire yet, it's because I make quite a bit of money as a software engineer and I have certain goals in mind that I haven't hit yet in regards to when it would make sense to retire. Plus the more money I have to continue putting into the market, the quicker that will be without having to take money out for expenses.

But I fully expect to get there within the next 6 months. I have some private sales I am invested in that I am expecting to go 100-150x based on previous similar projects

You can also lose your shirt in leverage. You want a rush? trade the 3x bulls and 3x bears ETFs in highly volatile days.

Leveraged 3X ETF List

Click to see more information on Leveraged 3X ETFs including historical performance, dividends, holdings, expense ratios, technicals and more.

etfdb.com

 

[BackInTheGame78]

You can also lose your shirt in leverage. You want a rush? trade the 3x bulls and 3x bears ETFs in highly volatile days.

Leveraged 3X ETF List

Click to see more information on Leveraged 3X ETFs including historical performance, dividends, holdings, expense ratios, technicals and more.

etfdb.com

I don't use leverage.

 

[Josh Davidson]

Crypto is so fast paced! It is traded 24/7. Even a well diversified portfolio of $10,000 could be lost in a little over 6 days in real life if one has misfortune.
One can be good at the stock market and bad at crypto trading and vice versa, or good/bad at both!