Only Invest What You Can Afford To Lose They Said
This is the most used phrase in the investment world, but I keep asking myself, do people actually invest what they can actually afford to lose? How many of us can afford to lose what’s in our investment portfolio. So I have come to the conclusion and realization that it’s almost impossible to only invest what you can afford to lose.
Life generally is a risk, not making an effort towards achieving a goal is a risk, making an effort is also a risk. When you don’t make an effort you have risked the chances of actually becoming successful and making it big in life. But when you make an effort you have also risked the chances of failing and losing everything you have.
Nobody takes an investment decision with the idea of losing or not being successful. Most people that took investment decisions took a risk and they were very optimistic. I’m very sure that every youth involved in cryptocurrency investment put in 90% or more of their total net worth. Now can they afford to lose that? I guess your answer is No, because if we are being real and sincere people don’t invest what they can afford to lose especially when they believe in what they are putting their money into.
Even if they invested 15%- 20% of their total worth into an investment and it fails, they still feel the effect and trust me, they never invested that amount because they could afford to lose it. They invested it because they wanted to make profit. This just brings back memories of my failed investments in 2019 and 2020. I was so used to “Invest what you can afford to lose”, luckily for me I had invested $3,000 in Ethereum and it yielded $6,500. I had extra $4,500 given to me by my father to further my post graduate studies. So in total I had $11,000. But I know that I needed more money and I wanted my $11,000 to yield more money. So I decided to diversify my investment into various platform to get the maximum profit in the safest ways.
So I diversified my $11,000 into Forex, Agriculture and Real Estates. Now the fact is, on those different places I diversified my $11,000 into, I never imagined or wanted them to fail, but I was on the notion that all investment factors can’t just crash and fail all at once, at least I will have one that will stand and I will use that to start building again. So in a way I was investing what I thought I could afford to lose on those individual investment sectors.
Few months after investing, the forex sector crashed and I lost my money there, I was sad. I got depressed but the thought and feelings that I still had money on other sectors kept me going. Three months later the other sectors crashed and I lost my money there also. Now look at the point am making, we are truly not investing what we can afford to lose when we are investing. People just say that to sound realistic and cautious. Every investment decision seems right until it fails. So the question I have is, how much can you afford to lose when investing?
Posted Using LeoFinance Beta
On my case it is not the amount that I am basing of, rather it is the time when I might need the investment. Investment/s are the monies that we do not need as of the moment and we may need in the future. So when it turns red this time, I will not be in worry as I am not expecting it yet to be returned the soonest.
Posted Using LeoFinance Beta
Yeah I get your point, investments give us hope, so when we lose it, the hope goes along with it
All the money I have invested in crypto will leave me devasted if it crashes right now. It is my life's savings.
Every money a person loses touches them in a way.
😂 so you didn’t invest what you could afford to lose?
Lol...no not really
Well, it's not only logical but relative as well. I think that phrase only means you should invest with caution. Not consider for the $11k all the money you ever had. You would be more than depressed if you lose it. The thought that you can still cope without it means you can afford to lose it.
You have a point here, but I never thought I could afford to lose it, I had no choice but to move on with life.
Congratulations @readthisplease! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
Your next target is to reach 4000 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPTo support your work, I also upvoted your post!
https://twitter.com/readthisplease6/status/1447416074866241538
The rewards earned on this comment will go directly to the person sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.
As edicted would call it "Being Extravagant"
As humans we're often driven by "wants"
We create imageries in our heads, the picture perfect yields and projects our investments accordingly. There's not really anyone that invests so little that it won't hurt, we always want to get enough rewards.
Posted Using LeoFinance Beta
And this is the hard truth we don’t want to tell ourselves
I worry that this will happen to a lot of people investing in crypto. It is so volatile. Huge potential upside, but such a gamble.
Yeah, high risk and high reward
i consider that if we research use cases before buying and pick carefully and HODL, then it's low risk in the medium to long term
Definitely it’s a low risk, but there is no 100% guarantee.
“Invest what you can afford to lose” is a stupid phrase or advice and ,,DYOR" as well. We have no clue what we're doing. It's a big boy's game. No one wants to lose money. It's a personal decision. Word ,,investing" is just a cover-up. I would call it speculating or even gambling. No pain - no gain. Some get lucky and some get burned.
Once, when and if you get rich the time for investing will come. It's a big if; especially with Crypto, though.
But hey, what do I know? I'm just an oldtimer on the blockchain. Don't listen to me.
And as they say:
Do your own research and only invest what you can afford to lose, hehe.
Posted Using LeoFinance Beta
😆 your last part though. I totally agree with you because am an investor and I have experienced lots of failures and success in investment. You were right when you said investment is a cover up for gamble. I totally agree, we gamble and hope for the best.