I am no professional investor, If I had the choice I wouldn't even bother to do it, I would work and save and go about my day, but in a world of currency debasement, we cannot merely save and rely on healthy interest rates. We are now forced to invest not to make a profit but to continue to break even. I've had to find out the hard way, my friends and family have no history of investing so I've had to figure this out all on my own and I continue to learn every day.
Learning to invest has been an expensive lesson, I've lost money, and I'll continue to lose money as I reduce my mistakes and the size of errors.
The key to investing isn't to try and always make winning trades it to be patient in your trades and be less wrong then you were the year before. When people ask me for investment advice, I will always encourage people to pick a niche they are comfortable with and learn all about it. I don't want to bring my biases into other peoples investment goals and strategies.
The more you learn, the more you earn
Many investors want to come in and time the market, but successful investors are those who spend time in the market. The more you spend managing your trades, the more you reduce your emotional response to the change in prices and you start to know when to cut your losers and when to ride your winners just that little bit harder before taking profits.
Time in the market will incur loses, but it brings confidence and pattern spotting that can be profitable in future.
You can't learn without being burned
I find it funny that people are willing to pay thousands for a degree that is no guarantee of income and many don't earn from it or have a reduced ROI due to the debt to get a degree. But they are not willing to lose a few 100 bucks attempting to try and investment strategy and learning from it.
If you are wrong you learned an expensive lesson, if you are right, you rewarded, and so you get to grips with the ebbs and flows of the market you trade in.
Don't be fearful, be careful
Markets may have some fundamentals you can review to help make your decisions but a large part of the market is sentiment. There are many investors who fall for emotions and it can be heavily influenced by fear and greed. To understand these trends and how groupthink works in the market you're in is the best way to find winning trades as going against the consensus means more risk, but also means higher rewards.
If you can successfully collect data on fundamentals, reduce your emotional response and review market sentiment you'll be able to make more profitable trades more often.
However, this only comes from trial and error, so if you are going to get into the markets, get ready to lose money but lose it in a way that provides you with additional benefits.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
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