A step closer to becoming a better investor

[Darker45]

To over-allocate is probably wrong even if we know what we're investing in. In the first place, doesn't over-allocation mean you're investing more than you should?

How much do you understand the Bitcoin market that will make you say you understand it? Or gold's? Or stocks, bonds, real estate, and other investments? There's always uncertainty in the market. Factors, big and small, that would affect the market are uncertain as well. Even well-experienced full-time traders lose at times.

[Spaceman1000$]

Investment comes with risk in most cases, if you allocate much to what you know and you allocate just a little to what you don't understand too well and it later becomes something big, won't you regret your actions. Those that took the risk in investing into Bitcoin hugely at the beginning, cannot be compared with today's investors, they took some risk that later boomerang to something great. So you cannot be too careful sometimes as an investors, because nobody knows tomorrow. So I also believe in taking some calculated risk as an investor.

[Solodoski]

Investment comes with risk in most cases, if you allocate much to what you know and you allocate just a little to what you don't understand too well and it later becomes something big, won't you regret your actions. Those that took the risk in investing into Bitcoin hugely at the beginning, cannot be compared with today's investors, they took some risk that later boomerang to something great. So you cannot be too careful sometimes as an investors, because nobody knows tomorrow. So I also believe in taking some calculated risk as an investor.

At times, I do feel investment is like a mind game. You snooze you loose everything. Being careful is one good characteristic of an investment, since it only takes one big mistake to ruin everything.

It is always advisable that you invest in what you have some level of knowledge on. Investing in things you trust and be willing to bear the risk if the investment do not go as planned. Regret don't fix things in investment. Taking precautions is the best solution to avoid had i know.

[justdimin]

Everything has its time and period. The right investment at the right time can earn you thousands of dollars. In our ancestors' time, those who invested in land and real estate made good money. In the last 10 years, those who invested in Bitcoin have made good money. Stocks have been profitable from time to time.

More recently, gold and silver have been profitable. It's important to try to be there at the right time, not focusing on just one thing. Some investments can take many years to yield returns; you don't need to wait that long.

It is about finding the right source of investment and jumping in at the right time. There is no point in investing once the hype is over because all we will do is stack a pile of loses. We should be quick when it comes to investments. We can't just sit and analyse for a couple of years before we can actually invest. This will make us lose the opportunity and as someone has said, opportunity never knocks twice. Let's not be desperate when it comes to investments. Always remember, not every investment is going to start generating profits. Some might just end up being worthless.

Sometimes, being at the right time and place is very important. As we know the story of the pizza delivery guy who got paid in bitcoins back then had no idea what to do with bitcoins but now, he will be owning hundreds of pizza stores across the globe just because he got lucky that time. Most people didn't even know bitcoins existed until 2014 - 2015. The hype which started later made people realize there is another digital form of investment which can yield better profits for long run.

[Yaunfitda]

Investment comes with risk in most cases, if you allocate much to what you know and you allocate just a little to what you don't understand too well and it later becomes something big, won't you regret your actions. Those that took the risk in investing into Bitcoin hugely at the beginning, cannot be compared with today's investors, they took some risk that later boomerang to something great. So you cannot be too careful sometimes as an investors, because nobody knows tomorrow. So I also believe in taking some calculated risk as an investor.

At times, I do feel investment is like a mind game. You snooze you loose everything. Being careful is one good characteristic of an investment, since it only takes one big mistake to ruin everything.

It's going to be a learning experience for us. Even those who have been in investing for the longest time, still learns from time to time. So it's like a continuous education for most of us. And the better we stay here, the better we became a good investor and then we anticipate things or see something that others might not see if they are just in the beginning of their journey.

It is always advisable that you invest in what you have some level of knowledge on. Investing in things you trust and be willing to bear the risk if the investment do not go as planned. Regret don't fix things in investment. Taking precautions is the best solution to avoid had i know.

Experience is the best teacher as what they say. So it's ok to fail early, the big lesson is how to  get up and then learn from that mistakes so that you won't repeat it. So there's nothing wrong in losing in our investment journey, it's part and parcel of everything and the result will favor us in the long run.

[michellee]

Having knowledge properly will helps someone to become a wise investor. He will not approach in something that he doesn't understand and prefers to learn before deciding.

He will not just spends his money without calculating and make a plan how he will runs it. He realize that investing must be careful and needs to research.

He also realize that investment have risks so he must know how to minimize the big risks. He will only use the money he can afford so he will not disrupt other things.

Allocating the funds is important so he will prepares the money to starts and not use the other money.

[DPHOR]

Well said and it's actually very hard for people not to understand how Bitcoin works. Currently Bitcoin is a global game and a Big fish which everyone talks about, it wouldn't take time to study about Bitcoin and if you are determined you could know about within days and weeks depending on your point of interest regarding to Bitcoin.
Well, those who doesn't have hope on Bitcoin moves into investment on Gold and silver but to realistic, Bitcoin could be more better and reliable because due to its cyclical movement it's appreciates when the halving is over or about to start halving.

[Oasisman]

Well, those who doesn't have hope on Bitcoin moves into investment on Gold and silver but to realistic, Bitcoin could be more better and reliable because due to its cyclical movement it's appreciates when the halving is over or about to start halving.

Realistically speaking, I won't say Bitcoin could become better than Gold until it is widely accepted globally. We are aware that some nations are still banning Bitcoin. Its current highly volatile nature may be the only thing that we can say is better than Gold, but historically it is still far in comparison. Bitcoin needs to be valued at above $1m a piece to surpass Gold. So, it's just understandable that most people who are not so fond of crypto are going to rely on Gold.
Bitcoin still has a lot of room for growth, and we can stop comparing it to Gold as of this current timeline, when we are talking about reliability. 

[The Cryptovator]

There are times where regular stocks are doing well.
There are times where Gold is doing well.
There are times where technology stocks do better.
There are also times where its best to be in cash and bonds.

And those periods can last for decades.

It's all about the trend. The same trend and the same strategy won't work for everyone. People investing in gold, silver or oil, because we can see how these assets have been growing. So those people aren't familiar with Bitcoin; then definitely they will move forward with these assets.

Just because your parents make alot of money with properties does not mean that our generations are going to do the same.

Still I think I should invest in properties especially on land. Not all the funds going to put in a single basket.

If we understand something we can buy it, if we dont, just have a small allocation to it, we should not necessary try to beat that market.
Its OK to be over allocated to something we understand and it's not OK to be over allocated into something we don't understand.

This is what I agree with. We can invest only in what we understand better. We have to choose the investment sector based on our experience. For me, I am going to invest in land and in Bitcoin as well. Land is for stable investment; it would increase in value from time to time, unlike Bitcoin, which is volatile. On the other hand, Bitcoin will give me a high return if I can hold it tight.

[Stormisover]

Investing is seen as a necessity especially for those who aim to experience positive returns, but its undeniable that investing comes with good and bad investors.

Bad investors are those who only invest not because they know their investment well, but they have seen how others have succeeded from it so they just imitate what others have been doing and expect the same outcome.

This is a very wrong move, this only makes an investment more risky because of wrong approach. One should only invest where he is knowledgeable to, and where he is sure that it can offer him higher rate of winning probability than losing.

Those who imitate what others have been doing and expect the same results without understanding and undergoing the level of sacrifices and efforts will never do well in a real sense, it easy to wish or imitate the next person but it is not always easy to go through the same process, infact those imitating will always want to e more those they are imitating without following the due process thereby make lot of mistakes along the line, that is for the bad investors approach but a good investor will always understand that it takes stages and due diligence to build something good hence they take things gradually other than imitating others.

[tygeade]

People are always there to guide but I wonder how many of those are already a successful investor. We can't simply guide someone if we ourselves struggle with the in vestmental decisions. It is not that easy to invest anymore and yes assets like real estate have turned out to be price extensive and are not that easy to gain profits from. I think competition in those markets is what is killing the profits.

There is always someone else who can sell similar or even better property for a much lower price, and the customers will always prefer hunting for such opportunities. Real estate can still be a better source of income if we have properties purchased way back in the past and were able to fully develop those properties.

Gold and Silver still seem to me like a better choice of investment because the funds will still be secure as they are going to be backed by real world assets which have an appreciating value over time. Gold is still considered to be a traditional form of investment but there are more digitalized options to invest in gold now.

[aysha9853]

There are times where regular stocks are doing well.
There are times where Gold is doing well.
There are times where technology stocks do better.
There are also times where its best to be in cash and bonds.

And those periods can last for decades.

Just because your parents make alot of money with properties does not mean that our generations are going to do the same.

We have to approach things just like Warren Buffet use to say, make the distinction of what's the price of this thing and what's its value and only if the price is low relatively to its value is when we should buy.

We should only buy the things that are in our circles of competent.

If we understand something we can buy it, if we dont, just have a small allocation to it, we should not necessary try to beat that market.
Its OK to be over allocated to something we understand and it's not OK to be over allocated into something we don't understand.

See what happened to Silver and Gold?

 hope this helps someone.

different assets such as gold bonds and stock technology preform at different times. most investments are long term which span decades.
past success does not guarantee future results such as in the real estate markets in the past this market has investment booming but not si much today. its still benefitable but just not as much. 
if you dont fully understand the and investment then limit your exposure to it to be safer. its fully okay to only focus on the areas you understand better. understanding is much better then chasing trends you dont know just cause eveyone else is doing so.

[dunfida]

Investing is seen as a necessity especially for those who aim to experience positive returns, but its undeniable that investing comes with good and bad investors.

Bad investors are those who only invest not because they know their investment well, but they have seen how others have succeeded from it so they just imitate what others have been doing and expect the same outcome.

This is a very wrong move, this only makes an investment more risky because of wrong approach. One should only invest where he is knowledgeable to, and where he is sure that it can offer him higher rate of winning probability than losing.

Those who imitate what others have been doing and expect the same results without understanding and undergoing the level of sacrifices and efforts will never do well in a real sense, it easy to wish or imitate the next person but it is not always easy to go through the same process, infact those imitating will always want to e more those they are imitating without following the due process thereby make lot of mistakes along the line, that is for the bad investors approach but a good investor will always understand that it takes stages and due diligence to build something good hence they take things gradually other than imitating others.

They would be able to find out at the time or moment that they've seen that the results were totally different. There's no way that you would be able to achieve the same results or outcome on which do tells that simply compying them wont be giving out that guarantees that you would be able to find yourself be successful same as theirs. You would be needing up to work hard and make your assignment or simply hard work and made out those realizations out of those learnings that you would be able to encounter along the way. There are just that those people who are just that too lazy and just that simply believing that they can totally mimic out others work or success. For you to become a successful or better investor then you are the ones will be making up some those realizations basing up on the actual experience that you would be facing along the way.

Just like by most people been said on here that experience would be the best teacher on which this is something that will help you out on realizing on things and would be able to apply on your further dealing up with this market or on how you owuld be making up some investment. It would be that always a never ending trial and error along the way.

[EluguHcman]

Normally, either stock or crypto markets should be treated according to our risk levels towards them which is being determined by the level of knowledge of it such as trading either the stock or crypto requires trading skills of analysing the market, good management, and trade with only amount you can afford to risk according to your reliability on the asset and take the risks according to your confidence.

Sure than concious ness with the risks of being overconfidence will always stabilize your risk pace and devotes to study and get convinced and not deceived will always lead you closely to be a better investor.

Nice thread.
Was a reminder to the beginners who thought the basic acquired knowledge of an asset that is doing well is worth investing without having proper knowledge of how the market.
Some greeds too are out of overconfident risk excessively that usually disappoints their expectations.

[Cookdata]

If we understand something we can buy it, if we dont, just have a small allocation to it, we should not necessary try to beat that market.
Its OK to be over allocated to something we understand and it's not OK to be over allocated into something we don't understand.

See what happened to Silver and Gold?

 hope this helps someone.

You are given advice as a clever person but not as a Bitcoin maxi. The yearly growth of gold and silver might be better than Bitcoin for due to uncertainty and FUD in the market but in the last hear, try and do the math's, Bitcoin remain the fastest growing asset that has never failed because there some that actually failed in their beginning due to bubble effect and expectations. Maybe in the future but for now, no asset comes close to what Bitcoin has done and what it's going to do later.

I don't want to be misleading but you can know nothing about Bitcoin and do better than a person that knows about gold with investment performance. There is nothing that beat any investment close to Bitcoin, forget about the short term set back we are experiencing, this is the bad side of Bitcoin but long term commitment will bring you something better than what you have lost in the market, as long as you don't sell the loss is going to be unrealized until you sold, and if you do then it's your loss.

[xbetz.io]

I agree with the core idea here: becoming a better investor is largely about understanding cycles and limits. One thing I’d add is that many investors underestimate how long certain regimes can last. Being early doesn’t help much if you can’t survive the waiting period emotionally or financially. The concept of circle of competence is especially important today, where access to information creates the illusion of understanding. Knowing why you own something matters more than simply believing it will go up. Diversification is often misunderstood too. It’s not about owning everything, but about not being forced out of a position at the worst time. In that sense, patience and risk management are probably more valuable

[Callido]

See what happened to Silver and Gold?

 hope this helps someone.

Being an investor is what i have often admired, someone needs to be skilled before certain investments choices.

I hope this topic covers every aspect of investment, we are in a Bitcoin forum, however, there are times when you can commit to another investment that is not Bitcoin, i don't mean other cryptocurrencies, a good investor reads seasons, which investment can be more profitable within this period, and times when they should invest in digital assets.