Tips on Investment Strategy
Can I call myself a trader? Well, I may not be a professional trader, but I do trade digital assets, which makes me draw out a strategy that has been working for me when talking about crypto investment.
Note: In trading/crypto investment, those who gain or lose have the same goal of making more money through their investment, but different strategies and some factors differentiate the outcome.
The three major factors I discovered are Time, Money & Skill.
It is your choice and current situation that determines how you will place these parameters.
No matter the strategy you are applying on your investment, you need an application of some specific skills, which you can gain using time or money to speed up the learning.
Over the years, I conclude in my mind that sticking with one particular strategy or following one famous investor strategy may make or ruin our investment.
What Do You Need?
Do you discover a strategy that works for you? Are you thinking about how to discover a strategy that will work?
- Educate Yourself
When you study well, understand and build your confidence about what you learnt, the strategy will work for you. It may not be 100 percent, but a good per cent of it will work out well.
- Decrease Your Stake
It is advisable to start your journey with money you can afford to lose. When a friend presents an opportunity t us, we try to understate our tolerance in terms of risk management. Please, try to experiment and understand your behaviour with money you can afford to lose first.
- Short term investment is killing most times
When you are building a future for yourself in investment, you need to know that investing with a short-term mindset will affect your risk and your behaviour, which makes it impossible for you to control your returns. You will always look at your balance (losing or gaining money).
You can’t analyse a project well when you picture it with a myopia radar. It will reveal incorrect information and wrong analyses most times.
This singular act will affect your emotion in terms of greed, fear, willingness to suspend your investment and look for high returns project, which may finally ruin everything for you.
When you invest in an excellent project for the long term, and you sense a drop in the overall market cap, have this conscious mind everyone invested in the project is affected and we have frameworks to reduce our biases.
This reveals a critical question you need to ask yourself when this happens:
When is the right time to buy?
Do I sell and lose some money or buy more?
How can now manage my emotion, when I see my portfolio value drop largely?
How can I build myself to a point of not checking my investment every day or every hour?
I can go on and on, but I will stop here for you to carry out your own research, work on your discovery and apply it. Don't be too quick to conclude, rather build your mind around your strategy.
Disclaimer: I am not a financial advisor, this is just an educational piece for further research.
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