Don't Lose your Money in the name of Investment
I know we all are investing to gain wealth and no one wants to lose the money but the market is brutal it cannot always give you gains sometimes we have to take losses too. Now the thing is getting a loss in a trade or investment is fine until and unless you are just holding onto it and get rigged. Means losing 10% is far better than losing everything.
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Do Not Lose Money
So the thing with investment is that do not lose 10% of your investment. Now we know when it's a bear market losing our capital is not in our hands and there can be instances where we could have lost 50%, this is where portfolio balancing comes into the picture. First of all, there is no need to invest everything into equity or volatile coins, it's better to keep some in StableCoins too just to reap that great profit. Do you know you get 20% Interest in Holding HBD in your Savings?
Invest in StableCoins
If you talk with any crypto enthusiasts they will say that they have invested hugely in so and so coins and when they ask about the Stable Coins, they do not know about it which is nothing but a basic concept in Crypto World. If you go to any financial planner, he will ask for your goal and your risk appetite. Now based on your risk appetite he will suggest the portfolio and that portfolio will have Debt Funds in it as well as a Fixed Deposit even though these are not money-making machines, only because he wants you to not lose your money in the name of investment.
Go for Quality than Quantity
Now the thing does not invest at each end of every coin that comes out, because that is pure over-diversification as well as do not keep everything into one coin which is nothing but keeping all your investment into one basket. These are some of the full-proof ways of losing your money. The problem with over-diversification is that you do not get a chance to do a depth study on all the coins you are investing and thus it's better to invest in some and have knowledge about the same. It's not about quantity which can make you rich, it's always about the quality. Bitcoin is not of an unlimited supply and because of that, it has a high price.
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Whether you do trading or investment, I think there should be an exit strategy. There is no point in holding something until you see you already lost 98%. Manage your risk and save your capital. I agree with you, don't lose your hard-earned money in the name of investment.
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Yeah, the exit strategy should be in place and you should make sure that you do not do the same mistake twice.
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You ruined everything. I was about to go to the store, but I read your post...now what should I do lol?
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You should do and do not lose much :)
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I'll try to combine business with pleasure)
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