>>7477026>>7476951Make this shit a copypasta if you want:
MPP matters, and I'll explain it to you like you are six, so it might be a little hard for you, but try to follow:
Since the only two values in this game are Holocoin (fluctuates) and Dollar (1$ is 1$), everything is measured in the fixed value of the two. Every trade Holocoin for Dollars has a specific Price, the purchase price, measured in Dollar. Because Holocoin does not decay, stacks infinitely, and always represents one share of that Holo, it does not matter for which price you really bought it, you now own X holo and you paid Y price. BUT, since the price of Holocoin fluctuates with every single trade and even more at adjustments, you can basically determine the "quality" of your coin measured in Dollar. This is because a coin purchased at $2k and a coin purchased at $8k can both sometimes be sold at $12k, but the profit from that trade amounts to $10k and $4k each. Basically, the lower the purchase price, the more desirable the trade, which in turn means, the lower the purchase price, the higher the "quality".
By the rules of NASFAQ, you can only make one purchase every 10 minutes. By the rules of the trade, high quality goods are usually highly in demand, and the same goes for low price, in this case both properties basically mean the same even. So you are not the only one buying a "good quality deal", many people are. This means, the price will rise according to demand and some magic, don't worry about it, it goes UP. If you buy 10 of any Holocoin, you will need 100 minutes, and in normal circumstances pay more and more for every single coin. Since the price rises, the "quality" of the trades sinks with time, because you pay more for the same coin. That means, the very first coin will be of the best quality in the batch, and sell for the most profit.
You now do this over many days, many opportunities.
MPP is nothing else than the average QUALITY of your Stash. The lower MPP you have, the more profit you made selling it all at once at ANY price. Very bad quality stacks can lead to selling for LESS than you paid, which actually means your dumb ass LOST money trading.
If you made it until here, you have known all of this or are a six-year old able to read and never put in words what your gut hopefully knew.
Now what does anon mean when he says MPP DOESN'T MATTER, and this is important. Dunning Kruger is in full fucking force. There is three types of anons claiming this:
- The troglodyte: "I get the same 200k dividends regardless of MPP"
- The daytrader: "I still make money from it, what do I care" and "I've bought and sold at so many price points, it means nothing"
- The Bruteforce-Dividend-Richfag: "All I need is an edge against my opponents, what matters is coin volume"
The troglodyte will stay poor - MPP matters because it shows you how much you paid for your stash, which in return tells you how many weeks you would need to hold to get your money's worth of ROI (Return on Investment). If you paid less, this amount is shorter, and you can also hold other coins to gain an edge.
The Daytrader will make money, but could optimize - just because he needs his dopamine or is fucking poor doesn't mean he decides how to see a truly "good" trade, he just ignores the fact that one should go into Friday with carefully planned, good quality trades to get the most out of dividends and just buys low, sells high, rides the waves and has in the worst case tens to hundreds LESS COIN to show for his endeavor because his neurons sprung over. MPP going up means your trades get worse and worse, in turn making your profits smaller.
- The Bruteforce-Dividend-Richfag is what YOU. ARE. NOT. - They play the game long-term enough that all that matters is raw stacks and their performance, but they also understand how to evaluate MPP to the current market situation and thus TRULY know the value of their stash.
Now there's people who buy low and sell high daily and keep some. Their MPP will rise. Even that MPP matters. If you know you make X profit off a sale, usually around pre-adjustment price if you hit it, your coin will inflate MPP relative to the market. It will go down if there is frequent dips going comparatively lower, and up if there's dips who get bought but the price is still higher than the day before. So if your MPP goes UP if you trade a coin daily, that means you are riding an inflation wave/long-term bubble. Interpret that shit.
Quickfacts: Why does MPP matter with divvies? It tells you if you wasted money. Why do people want to lower MPP? That means they want to add high quality coin to their stash. Why can people play around MPP? Because the general rules of this market permit it. Why do people show their MPP if it doesn't matter? BECAUSE IT DOES AND YOU ARE FUCKING RETARDED IF YOU QUESTION IT, STAY POOR.
