A step closer to becoming a better investor

[Razmirraz]

Snip.

This is one reason i always advocate not investing in something you do not understand too well because you may get it wrong in the long run not understanding that which you ventured into or you may have to learn the hard way when you are trying to learn while investing in the asset or bond or what ever financial instrument you decide to invest in. trying to outsmart a market that has probably been there even before you were born could get your fingers burnt, just make sure to be at your best and get the most that you can get and then move, do not try to be too smart, it doesn't end so well often.

If you invest in something you don't understand well, it can be very risky and can lead to losses, so you need to understand what you are investing in so you can make the right decisions and avoid mistakes. In the world of investing, never try to be too clever because there is no certainty here. Successful investing is often more about understanding the risks, having a clear strategy, and not panicking too much when something undesirable happens in the market. Increasing knowledge and patience is more effective than trying to outsmart the market, never be overconfident and think that you can beat the market because it will be difficult to do when the market is very competitive, so it will incur great risks if you try to outsmart the market.

[Dave1]

Snip.

This is one reason i always advocate not investing in something you do not understand too well because you may get it wrong in the long run not understanding that which you ventured into or you may have to learn the hard way when you are trying to learn while investing in the asset or bond or what ever financial instrument you decide to invest in. trying to outsmart a market that has probably been there even before you were born could get your fingers burnt, just make sure to be at your best and get the most that you can get and then move, do not try to be too smart, it doesn't end so well often.

If you invest in something you don't understand well, it can be very risky and can lead to losses, so you need to understand what you are investing in so you can make the right decisions and avoid mistakes. In the world of investing, never try to be too clever because there is no certainty here. Successful investing is often more about understanding the risks, having a clear strategy, and not panicking too much when something undesirable happens in the market. Increasing knowledge and patience is more effective than trying to outsmart the market, never be overconfident and think that you can beat the market because it will be difficult to do when the market is very competitive, so it will incur great risks if you try to outsmart the market.

It's not risky, for sure you are going to lose your money and that is not investing, as it's more on gambling, playing your money into the unknown. And it's not that hard to understand investing as this generation. Maybe in the last 80's-2000's, investing is like only for the big boys as they have all the knowledge pass down from generation to generation.

But with the advent of Internet, everything can be search and found and be studied. So that's one benefit of having Internet as you can go and learn everything about investing specially in crypto. And forums like this one really help us to do your own research before investing. Education is the best weapon for us to be successful in this crypto world.

[bubilas]

hope this helps someone.

We all need to be able to recognize opportunities and know how to seize them.  I generally like this principle of life: You need to be able to create and find opportunities and be assertive in taking advantage of them. This is all very important, because every day we are competing with the rest of the world for money.
These are the cards that life deals us, and we cannot change the rules. We should be grateful to our parents for the skills, appearance, and health they gave us through their daily hard work. Find the skills you have that others don't. Invest and save, don't buy nonsense. The rules are simple, and they are the same for everyone. Cryptocurrency will help us.

[abhiseshakana]

As my observation, many investors don't notice that market is not about choose the best asset but choose suitable asset for specific economic phase and based on our personal financial condition. We see many investor guessing  which asset will be booming and it is not wealth stacking strategy. Wealth can be built and maintain with siscipline in risk management review, diversification of investation, value understanding and also strategic adaptation on economic cycle. Copying previous generation's strategy isn't wise because conditions and circumstances have already change. Nostalgia isn'at a tools to evaluate an asset, assessments must based on macroeconomic conditions and our cashflow.

In chasing return, no need to be expert as investor, just ensure we quite understranding the risk, mechanism and the worst scenario. When we have limited insight, small alocation will be smart and wise decision. We can overallocated, as long as financial safety is fulfilled and not make fragile portofolio in case of crash possibility the last dont overexpossure on trending asset.

[Rengga Jati]

If you invest in something you don't understand well, it can be very risky and can lead to losses, so you need to understand what you are investing in so you can make the right decisions and avoid mistakes.

This is blind investing, yes, without any trading knowledge, without wise fund management, and based solely on instinct, a blank check...

Ahhh, that's blind..

Very lucky people might gain profits,
but luck doesn't play a role all at once and continuously.

[Cheema02]

Ask different millionaires and a billionaires what made them rich and you will hear different advice from them all, you will also learned that they become rich through different assets, some of them can have similar investment on same asset while other will also have different investment. A millionaire said he have been buying stocks since he was younger, in 10 years later he turned 31 and he decided to check his portfolio and he was a millionaire 🤷‍♀️, others people too have their stories about the particular assets they invested on and it made them their billions of dollars. Everybody have their interest at heart, what they want to do, the asset they want to invest on, it's not just a single asset that might make everyone achieve the goal they want.

Your point is based on reality and its true that to get rich there are a lot of different ways. If we saw in world many billionaire and Millionaire get success through different opportunities like some make money through stock market some from real estate. Many of them started early and maintain consistency and investing  areas according to their knowledge interst. In tour highlights even a small investment can turn into a large empires. As we know every one has its goals and thoughts and risk tolerance so the investing budget can
vary from person to person. So the learning point is that we should be carefully plane and instead of waiting instant success we should be chosse assets wisely. With smart thinking and strong mind people gradually move closer to there success.

[Dr.Bitcoin_Strange]

I think, to become a better investors or the steps to become best and successful in your investment is to know what you are doing, have the right knowledge, the right information and stay updated. For example, we can see that a lot of people including big companies, banks, government and the retail investors are all buying Bitcoin and holding it. For someone that is updated and knowledgeable, they would understand that Bitcoin is a solid asset that is preferable for so many people around the world and for that reason, the demand is going up and in the future, the price will boom, that information alone have already told the person whether to invest on Bitcoin or not. If they also follow information and learn about other assets, they will definitely become better investors.

[snowpega]

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.
....
 hope this helps someone.

IN my point of view, these assets are still doing well, but there is a fundamental truth that nothing stays forever. And for now, if we are facing crashes in the market than that ok because the majority of people start to book their profits, and the supply of the asset starts to return back in the market, which in result increases its supply in the market and reduces the demand of the asset. And because of that, the price of any asset starts to decrease.
And this thing keep reapting in the form of a cycle because once the market reaches its bottom, buyers and investors start buying it again and holding it until they are able to make profits from their investment again. This is my point of view on this. What do you think about this? DYOR!

[whiteblue]

The problem with new investor today, as they've seen that one investment is profitable to the person they look up to. Then, they'll also invest into that asset without the need to at least understand the risk they take.

They go with the flow and that's a mistake that many have been doing. If they made some profits, that's good and that's basically luck is with them.

But never do that in practice because they're putting themselves in the wrong situation that, if they get used to it. The eagerness of understanding an investment before they put money in it is gone.

That's FOMO, and it's a common investor affliction for both new and experienced investors. They sometimes experience FOMO when investing in a stock or asset, even without carefully reviewing it, but instead force themselves to buy. In the end, we know what happens. While some are fortunate enough to follow the trend, only a few can anticipate it.

I think going with the flow isn't wrong if we can re-examine the asset and assess its projected opportunities in the short and long term to understand its fundamentals and technicals, such as whether its value is overvalued at its current price or whether there's still potential for further appreciation. This can be a solution for those who like to follow the trend.

I was once like that type of investor but we're growing and learning from the worse experiences that we've got as an investor.

And that's why if a newbie gets to do that, it's understandable that they're in their start and exploring such investments is a part of it.

But if they don't learn from that experience, it's a mistake that they have never learned of and the problem is on them. It's barely fixed if they don't get notice and acknowledge of that problem.

Every failure, every misunderstanding from the start is a very valuable thing if we get the truth in the process we continue to learn, all of that will become experience and will become knowledge that is obtained by ourselves when we are able to examine every thing that is available to us, no one starts perfectly in this investment, we have to see the process where people also make mistakes on every journey, in addition to beginners, including those who have been doing it for a long time, the level of error and understanding will be different in each incident because it will face the perspective of a person's way of thinking.

Every investor must feel this in my opinion, it's just that very few admit it, some of them because of prestige, even though we know that good investors are those who are open as a whole from the mistakes they have made and the success of passing these learning obstacles.

[0x000369]

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.

@YellowSwap yeah that warren buffet stuff is cute for boomer assets
but when you're talking about something like bitcoin a lot of that "value" concept gets real squishy early on
nobody truly grasped its full potential in the beginning but it still went parabolic anyway
and what happened to silver and gold lol they mostly just sat there while bitcoin did 1000x
sometimes you just have to ape into things you barely understand if you wanna catch the real pumps
your "circle of competence" is fine when things are stable but crypto markets move different

[Cleanslate_]

One needs to be fast in thinking and creativity, go for the investment you understand and can afford so that you will not be trapped in a financial situation on your journey of investment that will pull you down and make you fail.

For you to be a successful investor, you need to be patience and work with the strategy that suits  your business.

[sunsilk]

I was once like that type of investor but we're growing and learning from the worse experiences that we've got as an investor.

And that's why if a newbie gets to do that, it's understandable that they're in their start and exploring such investments is a part of it.

But if they don't learn from that experience, it's a mistake that they have never learned of and the problem is on them. It's barely fixed if they don't get notice and acknowledge of that problem.

Every failure, every misunderstanding from the start is a very valuable thing if we get the truth in the process we continue to learn, all of that will become experience and will become knowledge that is obtained by ourselves when we are able to examine every thing that is available to us, no one starts perfectly in this investment, we have to see the process where people also make mistakes on every journey, in addition to beginners, including those who have been doing it for a long time, the level of error and understanding will be different in each incident because it will face the perspective of a person's way of thinking.

Every investor must feel this in my opinion, it's just that very few admit it, some of them because of prestige, even though we know that good investors are those who are open as a whole from the mistakes they have made and the success of passing these learning obstacles.

I agree, no one gets to start perfectly with their investments. And we're all learners from that point and even when we become profitable and experienced, we still remain to continue learning.

While with that essentials that we need in the beginning, if we have kept them as lessons. We'll be good in the long run because we'll not give up.

But to the impatient investors, they're not going to get any better because patience is a virtue and it's one of the most important things needed to remain invested.

[Vaculin]

Sometimes, its never a sustainable mindset to stick only on what you know, and avoid those you think you are not familiar and incapable of. Because in reality, if you keep doing that, you only set limitations on your future achievements, and for me that's something we have to change.

Instead, take an extra mile and step out from your comfort zone.

If you think stock or bonds are not suitable for you because you have no sufficient knowledge and understanding investing on them, then set time to learn them, make extensive research and study well. Until you find yourself convinced to try on them, who knows you might gain more success and profitable returns than just focusing alone on the investment you know much.

[Adams0001]

I think, to become a better investors or the steps to become best and successful in your investment is to know what you are doing, have the right knowledge, the right information and stay updated. For example, we can see that a lot of people including big companies, banks, government and the retail investors are all buying Bitcoin and holding it. For someone that is updated and knowledgeable, they would understand that Bitcoin is a solid asset that is preferable for so many people around the world and for that reason, the demand is going up and in the future, the price will boom, that information alone have already told the person whether to invest on Bitcoin or not. If they also follow information and learn about other assets, they will definitely become better investors.

In anything you're doing business or investment if you failed to know what you're doing your goal will be loses because investment need understanding and if you don't really know what exactly you're putting your money and just investing since you see others are doing you will try to do too, is always advisable to know different strategies and experience about the investment or business you're doing so that you can knows step that you can be following.

Bitcoin is one of the investment that you can best and be profitable evening you don't really know or get knowledge about bitcoin is volatile and if you're have invested in it for the long time your goal will surly be a profit because the more the price is decreasing that is how you should put in mind that the price will increase too in gradual process. If someone have started getting profits in any investment you're doing that means you have the experience already, and bitcoin if you're using DCA method for he will minimise your risk and you can become a better investor.

[Leahized]

There are investments where you are not familiar to, and there are assets that you are highly knowledgeable to. Just keep learning and make extra research on those you don't know, because sooner when your initial investment pays off and pays you a huge income, then diversification is the key. That way, you won't find it too hard anymore to deal into new investments because you have made an advance research prior to the success of your first investment.

Yes this move is good, if ever the first investment results in high dividends. Then it is possible to diversify the wealth later. Proper management of planning and monitoring will lead to success. But many times it is seen that even after doing a lot of research,Due to some sudden situation the market is not in its favor. Even investing there will result in loss of money. Moreover we should consider the way to see profit and loss. Wealth wise investment in gold and silver is currently the most alternative method. However, Bitcoin will not give much return at present, it is understood by looking at the chart candle.

[bhadz]

And at these times will test someone on how good they are as investors. If they're able to survive this painful market, then they can be considered as a better investor because they'll be upgraded and will apply the learnings that they have got in order to survive this bloody days in the crypto market. So, aside from the approach of DCA, taking how the market seriously on the bloodiest of its day can also help improve an investor. We all have to get into that point that we're almost giving up because of how brutal is the market which isn't expected by the most.

[whiteblue]

Every failure, every misunderstanding from the start is a very valuable thing if we get the truth in the process we continue to learn, all of that will become experience and will become knowledge that is obtained by ourselves when we are able to examine every thing that is available to us, no one starts perfectly in this investment, we have to see the process where people also make mistakes on every journey, in addition to beginners, including those who have been doing it for a long time, the level of error and understanding will be different in each incident because it will face the perspective of a person's way of thinking.

Every investor must feel this in my opinion, it's just that very few admit it, some of them because of prestige, even though we know that good investors are those who are open as a whole from the mistakes they have made and the success of passing these learning obstacles.

I agree, no one gets to start perfectly with their investments. And we're all learners from that point and even when we become profitable and experienced, we still remain to continue learning.

While with that essentials that we need in the beginning, if we have kept them as lessons. We'll be good in the long run because we'll not give up.

But to the impatient investors, they're not going to get any better because patience is a virtue and it's one of the most important things needed to remain invested.

There's always a saying that the only thing that can stop us from learning is death. No matter how old we are, we must continue learning. The brain can't store much; there's a limit to what we gain. Furthermore, new knowledge is constantly being added, so we must adapt, and therefore, we must learn, including in investing.

If the key is patience, then I agree. This is why the Bitcoin community coined the most famous saying in the investment world: HODL. This seems to instruct someone to remain patient over the long term for satisfying results.

[demonica]

In conclusion, you can invest in different kinds of investments you want as long as you know and understand them properly. Or in general, invest only on what you are knowledgeable about. Investing already has it's own risk, and investing on something you barely have any idea will make it even riskier.

Investing requires proper understanding of the market before you start investing. It's actually the first step when you're just starting with investing. You can always start studying and learning first before investing, regardless of what kind of investment it is. This is really important to know if you want to be a better investor.

[CryptoDracoo]

I believe that the key problem is how to survive without attempting to win on the market. Since things evolve and so does a hero, then it will be stocks this decade, and gold or anything next. Now, it is better to know the extent of risk you can make than simply run around and see where returns are high. The other observation I have made is that most individuals commit the fallacy of repeating the past successes of their family. But a generation of different generation has different opportunities. This is why the value vs. price thinking invented by Buffett remains so applicable. Personally, I am of the opinion that being able to stick with what you know only brings you peace of mind and makes more decisions in the long term. Finally, investing is not a skill that one is very smart but a skill that one is very consistent and conscious of.

[Bluedrem]

No investment is made with zero risk of loss. No matter where you invest, there is always risk in investing. Before investing, you never know which asset will do well in the future and how much. What you can do is guess, that is, if you research an investment product, you cannot use the information you have researched to reduce losses. Yes, gold and silver are doing well now, but even two years ago, people might have thought that Bitcoin would do better than gold and silver. In fact, people invest based on their uncertain desires.