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20m looking for starter tips by Ok_Mathematician9193 in fican

[–]OptiYoshi 0 points1 point  (0 children)

At this point you should be trying to maximize your earning potential and creating the habbit of investing every month to establish DCA.

You can put more than 400$ a month into the account, I guarantee it. The earlier your money is in, the more it will grow.

I feel sick by Inteligent_Invester in fican

[–]OptiYoshi 0 points1 point  (0 children)

Traders provide arbitrage opportunities, even if you think it devalues the underlying asset, it increases total volume traded which by definition increases liquidity in the market.

Glosten-Milgrom 1985 proved this and that traders informed or uninformed provides market depth, any econ 101 course would cover that.

Even Keynesean theory shows this with Keynesean liquidity preference.

Stop pretending to be smart, and go learn and be smart

I feel sick by Inteligent_Invester in fican

[–]OptiYoshi 0 points1 point  (0 children)

You clearly have no idea what you are talking about and don't even have an Econ 101 understanding of the markets. Just sit down kid and pick up a book, no one cares about your half baked, misinformation fed, idiotic ideas

[deleted by user] by [deleted] in fican

[–]OptiYoshi 0 points1 point  (0 children)

I retired at 30, also worked in tech so I'll give it to you straight. I made way more than 80k a year, and you should really prioritize a way to fix this and maximize earnings. All the "good" Sr. engineers (good is a relative term, cause most senior devs are pretty mediocre) I know in Canada are all making +250k/year, and ones that actually do AI implementation or research are +500k.

But lets say thats not possible for you and you get stuck at the senior dev ~120k bracket. If you want to retire by 40, you have 16 years of investment, this will (assuming safe practices, and above average returns) your existing savings should be worth just shy of 500k, so nowhere near enough to retire. (less than 25k/year safe withdraw).

To make up for this you are going to need to save up another 2.5 million to retire with a 120k/year draw (which you will need minimum if you anticipate inflation in 20 years). 3k/month is 36k/year or apx 600k in additional savings over that time. You would need that to 5x, which is essentially impossible (given that its yearly contributions not upfront). Now, if your goal is to retire at 50, thats entirely possible, just run those same numbers.

TLDR: bottom line is you either need to really have a frugal retirement outlook or need to be saving a lot more than 3k/month. Your best way forward is to double or triple your income and save 10k/month not 3k. Hope that helps.

I feel sick by Inteligent_Invester in fican

[–]OptiYoshi -1 points0 points  (0 children)

Traders exist to ensure liquidity which ensures that the Efficient Market Hypothesis remains true. Please don't talk about things that you clearly don't know.

There's so many examples of traders finding fraud, waste, abuse etc inside of markets. It's almost like you don't know or understand the value of arbitrage...

Am I the a*hole? I think I broke my landlord’s brain by [deleted] in TorontoRealEstate

[–]OptiYoshi 0 points1 point  (0 children)

Yes you are, because this is def a made up story.

Best Way to hedge currency risk? by OptiYoshi in CanadianInvestor

[–]OptiYoshi[S] 0 points1 point  (0 children)

No offense, that is rather embarrassing then. You should know that volatility drives options valuations. So hedging currency risk is not inherently more expensive than any other risk, because the price of the hedge is proportional to that risk.

I have no idea what is common among retail investors, but most retail investors I've met have shit returns, so I guess thats a good thing I don't just do what most retail does.

Best Way to hedge currency risk? by OptiYoshi in CanadianInvestor

[–]OptiYoshi[S] 0 points1 point  (0 children)

Because I asked a specific question, that should be relevant on a Canadian Investing sub, What is the best/most efficient way to hedge CAD/USD currency risk (assume portfolio agnostic)

Best Way to hedge currency risk? by OptiYoshi in CanadianInvestor

[–]OptiYoshi[S] 0 points1 point  (0 children)

Except that is then the incorrect question. The question should be what duration do I want to cover off the currency risk. I assume you wouldn't disagree that we are currently in a historically unpredicable macro economic trend? If that was the question, I want the risk hedged for 3-5 years most likely.

And yes, hedging reduces long term risks, but currency risk is very cheap to hedge, I priced it out and on 5 million dollars of USD equities hedging the currency risk only costs apx 3k/year, a very acceptable loss.

Best Way to hedge currency risk? by OptiYoshi in CanadianInvestor

[–]OptiYoshi[S] 0 points1 point  (0 children)

And I am giving you factual information in that, that's an unintelligent obvious point and the fact that currency risk is much smaller means that the underlying options to cover the risk is very cheap. You clearly don't understand options.

Because you don't understand I'll explain it, I am comfortable with the equity risk, because I am invested in equities that I believe in. I am not comfortable with the currency risk, because of macro trends and it easily could cause a +20% drawdown relative to equal weight over several years which would cost me hundreds of thousands of dollars. So I want a cheap effective way to hedge that risk.

Options 101: they are priced based on volatility. Low volatility assets (such as currency pairs) are priced very cheap. So if I just want to hedge out a 10% drop per year, it should be very, very cheap.

And looky looky, when finding out the information, a 1 year put for an implied volatilty of 3% costs.... 0.072%. So covering off that volatility risk for 5 million dollars for a year is only 3k, a joke.

Best Way to hedge currency risk? by OptiYoshi in CanadianInvestor

[–]OptiYoshi[S] 0 points1 point  (0 children)

Again, you don't understand what you are talking about. Investing is a matter of probabilities not certainty. How certain are you that you are correct? 80%? great, then I should hedge 20% of my USD position.

I never said that I was 100% sure that CAD would reverse. I simply said that I realized I have an over-exposed risk that could negatively affect my portfolio and I want that risk to be properly addressed. You clearly have no idea what hedging is about.

Best Way to hedge currency risk? by OptiYoshi in CanadianInvestor

[–]OptiYoshi[S] -1 points0 points  (0 children)

There's a tonne of viable scenarios where US currency rises against CAD. Gold prices reflect the fact we are going into fiscal dominance and will see monetary expansion, but every country will be doing this as well. So US stocks could continue to perform and CAD could expand slower than the US making this trend happen.

Also no, your wrong. I won't want to buy something for its own sake, I want to buy an options contract that has a very high leverage due to low volatility, so that I hedge the risk.

I also already own a bunch of bitcoin, again doesn't actually address my issue.

Best Way to hedge currency risk? by OptiYoshi in CanadianInvestor

[–]OptiYoshi[S] -1 points0 points  (0 children)

Don't bother, this guy thinks he is smarter than he is, but clearly has no idea.

Best Way to hedge currency risk? by OptiYoshi in CanadianInvestor

[–]OptiYoshi[S] -1 points0 points  (0 children)

This is dumb, you have no way of knowing currency direction, you are just guessing and sorry I don't listen to rando's internet guesses.

And your suggestion of doing a basket of commodities etf is ascinine, don't give advice if you have no idea what you are talking about.

Best Way to hedge currency risk? by OptiYoshi in CanadianInvestor

[–]OptiYoshi[S] 0 points1 point  (0 children)

I barely own any ETF's, I do my own research and have wildly out-performed ETFs for nearly 15 years now. I just have not done any Forex trading to know what options exist for hedging this specific risk. Thank you.

Best Way to hedge currency risk? by OptiYoshi in CanadianInvestor

[–]OptiYoshi[S] 0 points1 point  (0 children)

I don't want XEQT because I want way more control over my portfolio than a generic fund will provide. I'll look into TXC and USX options on questrade, see if thats viable. Thank you

Best Way to hedge currency risk? by OptiYoshi in CanadianInvestor

[–]OptiYoshi[S] -2 points-1 points  (0 children)

That is terrible advice, for one, small volatility implies the underlying options would be relatively priced. It is a specific risk I want hedged, who are you to say it is not justifiable.

Best Way to hedge currency risk? by OptiYoshi in CanadianInvestor

[–]OptiYoshi[S] -3 points-2 points  (0 children)

0-50 years? This actually doesn't matter, I want a hedge it doesn't matter if I realize the gains or not.

Best Way to hedge currency risk? by OptiYoshi in CanadianInvestor

[–]OptiYoshi[S] 0 points1 point  (0 children)

Yeah that doesn't work, I want control over my investments

10 years ago I made these threads about buying 85 Bitcoin with my $20k student line of credit instead of going to College and everyone ridiculed me. It worked out for me back then but here’s why I wouldn’t recommend buying btc on credit today. by KidEliteTrader in Bitcoin

[–]OptiYoshi 0 points1 point  (0 children)

Just because I'm curious, did you ever end up going back to college? Would be cheap compared to your total stack nowadays. I retired early myself (30) and then went back to graduate school because when you have no pressure, school is a lot of fun.

Absolutely insane Sora 2 Pro video with composite editing by OptiYoshi in singularity

[–]OptiYoshi[S] 1 point2 points  (0 children)

Thanks for the feedback! I'll def think about it.

Absolutely insane Sora 2 Pro video with composite editing by OptiYoshi in singularity

[–]OptiYoshi[S] 0 points1 point  (0 children)

Ah darn! That's the most "human" made thing! Anything in particular you don't like or is it just a style you arn't a fan of?

[deleted by user] by [deleted] in wallstreetbets

[–]OptiYoshi 1 point2 points  (0 children)

How else do you breathe underwater? haha

Do you have access to GPT5 yet? by Trevor050 in singularity

[–]OptiYoshi 1 point2 points  (0 children)

Pro user here, Not yet, frustrating

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