A step closer to becoming a better investor

[justdimin]

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.

People who think they found a gold mine and invest and can make guaranteed profit is the reason why there are crashes. Because when bitcoin goes up a lot, they think that they found "the one" and invest into either bitcoin or some shitcoin and think they can invest and be rich, without realizing the risks they are taking.

First of all, if you are investing into bitcoin when it's already too high, just because there is a hype in the market, that doesn't mean it will continue to go up, it could peak and then start to go down and you may lose your money. Secondly if you are investing into a shitcoin, without realizing it's a shitcoin, thinking you are going to x10 and profit and think that's possible, then you are naive and should be more careful than an average person when investing.

[Mate2237]

It is expected that before putting your hard earned money into buying of any property or even putting it into any investment you should have a balanced understanding and knowledge about such business. Because most just enter business based on what they see on the surface and later regret because there is a large difference between what is in reality and what they were seeing. Business scouting is one thing that should be done deliberately because to avoid regrets afterwards.



One thing that people should know is that when it comes to investments it's not just about putting money into a business.Investment is more like a business management so you have to have a good investment skills which has to be developed intentionally.

[Ziskinberg]

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.

Human in nature is imitative, easily follow or copy what his model is up to, especially if that thing or investment works for other people, so he end up thinking it could work also for him, without weighing the future consequences.

Just because it works for others, then its also possible for you. Every investment has its own risk and challenges, so if you invested without prior learning and has no background information how to navigate it, then there's no possible reason that it will be profitable for you.

We don't have to risk something we don't know about, except if you are willing to lose and learn from that losing experience.

[sunsilk]

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.

Yes, learning isn't limited to age. Even the oldies are telling the same thing that we shouldn't stop from learning because it's a must and an important thing a man should do.

As for bitcoin investing, holding is also a factor that makes people successful here. Without such and are only for the short term, is a problem that they should deal with.

Human in nature is imitative, easily follow or copy what his model is up to, especially if that thing or investment works for other people, so he end up thinking it could work also for him, without weighing the future consequences.

Just because it works for others, then its also possible for you. Every investment has its own risk and challenges, so if you invested without prior learning and has no background information how to navigate it, then there's no possible reason that it will be profitable for you.

We don't have to risk something we don't know about, except if you are willing to lose and learn from that losing experience.

While the possibility of also working for those strategies that have been effective for others could work for us, it's not always a thing.

It's a case to case basis that we might not see happening to us and that's why we have to reimagine and creative from doing it.

And as I agree about not taking risk into things that we don't know about, we still see people that does it.

[Finestream]

Its important to note that when you invest and risk your hard-earned money, make sure you know well the potential outcome of your investment. Because let's face the reality, there is no investor that would want to gamble the outcome of his investment, he invested on that because he knows it will result into bigger profit potentials.

However, if you want to diversify your investment, that would be a good decision, but you don't have to diversify when you know nothing about those target investments. Study them well first before trying to diversify.

[HONDACD125]

It's a normal thing, and every person who decides to make an investment in something should understand that they need to have proper understanding of that thing, because you can't invest your hard-earned money into something you know nothing about, and those who do it without knowledge tend to lose money, which is why it's important for everyone to have knowledge before they involve their finances. A good investor is not someone who hears rumors about an investment asset doing good, and runs to make their investment as well, even if it's something very good, you still need to do your own research before you do anything.

It's human nature to run behind riches, almost everyone of us have a greedy person inside of us that keeps asking us to do things that can give us a lot of money, it's just that some of us give in on such thoughts and actually do anything our greed asks us to do, and others control their feelings and emotions and do things moderately and try to stay happy with as much as they manage to make which they can make easily or without having to take a lot of risks. Those who invest a lot of money with the hope that they are going to make more even when they can't actually afford to do that are extremely greedy.

[Danica22]

However, if you want to diversify your investment, that would be a good decision, but you don't have to diversify when you know nothing about those target investments. Study them well first before trying to diversify.

I think diversification is necessary, and sometime even mandatory, if you invest in high risk asset. Because investing alway involves risk, and the higher the return, the greater the risk. Therefore, if we lack knowledge, we should dedicate time and learn in every way possible

Diversification is sometimes not just about minimizing risk, but can also yield higher returns if we invest in the right asset. For example, those who are investing in bitcoin and diversifying their portfolios into gold. They are reaping double the profit, while Bitcoin investor are suffering temporary losses as it undergoes a correction phase.

[Oluwa-btc]

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.

So many people make the mistakes of investing the wrong way and basically your approach matters in a lot ways when going into investment, it requires proper knowledge,and understanding the market if all of this are been put in place then there's so much to gain from it. You can as well use both gold and silver as good analysis for better investment results.

[Oluwa-btc]

I like the part where he said people should buy or invest in their circle of competence.Many of us don't find such advice useful especially because sometimes we see/hear from referrals and sccess stories.However,the smartest investment options comes where understanding meets actions,and we really need to be mindful of that part.This doesn't work like magic,but it helps you protect your capital, decisions and the long term benefits.

[ChocolateBitcoinK]

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.

So many people make the mistakes of investing the wrong way and basically your approach matters in a lot ways when going into investment, it requires proper knowledge,and understanding the market if all of this are been put in place then there's so much to gain from it. You can as well use both gold and silver as good analysis for better investment results.

In every investment, we need to focus on market movements and proper management, since everything is risky and volatile, that is why we need to do proper analysis first, decisions made without proper knowledge and analysis often become emotional, which ultimately leads to losses. And that is why when it comes to investing in anything, we need to do research first and then make a decision. Before investing, it is very important to understand how the market works, why the price increases or decreases, how risk is created and how to control that risk. This applies to anything, be it gold, silver or Bitcoin.

[tbterryboy]

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.

The trick of investing and business are similar, because the goal is to make money. So you need to find what people desire, in business world you start a business for that desire, in the investment world you invest into it. Like one of the best investors in the world, Peter Lynch, talks about how he didn't even checked the stats or the numbers for a make-up type of company, or maybe skincare, whatever that's called for the woman basically, it was a series of shops all around the nation that sold those kind of stuff for the ladies.

He invested into it, not because of any numbers, but because when he one day get out with his daughter and friends, they all wanted to go to that place and shop, and they went crazy for finding some stuff, he realized, there is a possibility every lady likes this shop this much. So he invested, and made a fortune out of it. Find what people desire, and you can invest easily.

[Orpichukwu]

So many people make the mistakes of investing the wrong way and basically your approach matters in a lot ways when going into investment, it requires proper knowledge,and understanding the market if all of this are been put in place then there's so much to gain from it. You can as well use both gold and silver as good analysis for better investment results.

Proper knowledge and understanding is indeed required, but when talking about investment, to me, we should be specific. There are some types of investment for which the investor needs the guidance of those who are already into it and can help them by telling them about the risk instead of them just speculating based on what they see online. It's never as easy as they always imagine or expect; no investment is without risk.

[Unknown Op]

So many people make the mistakes of investing the wrong way and basically your approach matters in a lot ways when going into investment, it requires proper knowledge,and understanding the market if all of this are been put in place then there's so much to gain from it. You can as well use both gold and silver as good analysis for better investment results.

Proper knowledge and understanding is indeed required, but when talking about investment, to me, we should be specific. There are some types of investment for which the investor needs the guidance of those who are already into it and can help them by telling them about the risk instead of them just speculating based on what they see online. It's never as easy as they always imagine or expect; no investment is without risk.

Different people have different plans and many people think that Bitcoin is best for the investment and they are buying the Bitcoin as they can and they are doing work to earn money and they are saving money which they are Investing in that Bitcoin which is best and safest investment all over the World. People made their career by Investing in gold also as many platforms are available on which people are trading at different prices as we know that prices can be change at any time but there is more risk in gold and you should avoid that investment.  Stocks and bonds are very risky and Many people don't trust that because prices could go down according to business.

[Jubilee58]

There is time for everything, there were investments that were invoke and lucrative in the past , but today, they have become  old fashioned and does not make wave in this present time. For you to succeed in any investment, it is necessary you understand the details of that investment and more also, don't go into any investment because people are in it, such mindset can fail you.
When you want to make an investment, consider your strength and your weakness and try to analyse what it takes for that business to grow, once you consider yourself fit for that business or investment, then you can go for it.

I have a brother who was into frozen fish business, he was dedicated to the business and at thesame time he was successful in it, at a point other people joined him, low and behold, they could not succeed because they were not able to put thesame effort.
In nutshell, consider your strength before you venture into any business or investment.

[Marykeller]

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.

You are right to some extent, but let's not forget the fact that there is money to be made in properties. If our parents can be rich through that means, we can do the same. What is needed on our side is to have the proper understanding of how it is being done, if we can follow it up the same way without following the wrong way.

The same thing goes for other things, we need the proper understanding to succeed in them, or fail woefully because not everyone has the same exact understanding

[slapper]

It's a normal thing, and every person who decides to make an investment in something should understand that they need to have proper understanding of that thing, because you can't invest your hard-earned money into something you know nothing about, and those who do it without knowledge tend to lose money, which is why it's important for everyone to have knowledge before they involve their finances. A good investor is not someone who hears rumors about an investment asset doing good, and runs to make their investment as well, even if it's something very good, you still need to do your own research before you do anything.

It's human nature to run behind riches, almost everyone of us have a greedy person inside of us that keeps asking us to do things that can give us a lot of money, it's just that some of us give in on such thoughts and actually do anything our greed asks us to do, and others control their feelings and emotions and do things moderately and try to stay happy with as much as they manage to make which they can make easily or without having to take a lot of risks. Those who invest a lot of money with the hope that they are going to make more even when they can't actually afford to do that are extremely greedy.

2008 happened. Those were PhDs in finance who had access to every single data point imaginable. And they still went on to blow up the global economy. So clearly knowledge isn't this magic shield that we keep pretending that it is.

Greed seems too simple, too moralistic to call it greed. Because what you're describing as greed might be just people trying to survive in an economy where wages don't keep up with costs. And conventional savings accounts give you next to nothing.

There's this weird thing that we individualize everything. Bad investment? Should've researched more. Lost money? Too greedy. But we never ask about the reasons why the ordinary people are forced into the markets in the first place.

Most people aren't losing their money because they're stupid or greedy. They're losing because retail investors are structurally disadvantaged - information asymmetry, advantages to institutions, algorithmic trading (operating on time scales humans can't compete against).

You can research all you want. Doesn't change the fact that you're playing a game in which other players have better cards, better information, better tools.

Maybe the real knowledge is when to recognize that is not about how well you play the game, it is that the game is the problem.

[Su-asa]

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.

It is indeed a different time because during our parents time things were not this expensive but right now,  a whole lot of things are very expensive and at some point, if you are not doing anything to get money from, there's a high chance that you can not be able to afford them. However, right now, it's good to invest your money on anything which you think can be profitable to, either stock, real estate, crypto currency or gold and silver. So long as you can afford to invest in them, you are free to because there's a higher possibility that the future will be worse than what it is right now if you don't make things right today.

[khiholangkang]

The most important thing is to be able to recognize the assets we want to buy for investment, the more we know the better, especially regarding the fundamentals, this is a crucial thing that needs to be understood as an investor because it is a guarantee of security in the long term, for example, the best time to buy bitcoin is when it is bearish, if we are not familiar with bitcoin, maybe we will think about being afraid to enter the market, but because we know that bitcoin always prints a new ATH every 4 years and forms an ATL that continues to be higher, it makes us very confident that the future is brighter, this includes the fundamentals, we have not talked about the system and technology and also the risks that must be addressed as well.

[Josefjix]

Your post is little bit complicating to me, I don't exactly grab what you mean because I haven't paid much attention to it. Maybe at my leisure, I could reread and have a broader understanding of it.
What I could generally understand about investment is, invest in what you understand properly, not because your friend or relatives doing the same thing, doesn't mean we should also.