Portfolio Management: Why Every Investor Needs It.

[Joy- maker]

A lot of us here always talk about investing, but only few persons talks about portfolio management. Yet, portfolio management is what separate serious investors from those who are gamblers.

WHAT IS PORTFOLIO MANAGEMENT?  Portfolio management happens to be how you as an investor organize, balance, and manage your investments in other to achieve your own financial goals while controlling risk. Note this, Portfolio management is not just about buying assets, it is about managing them properly.

WHAT IS A PORTFOLIO?  Your portfolio happens to be the total collection of your investment, And this can include: cryptocurrencies, stocks, real estate, commodities, bonds, mutual fund or ETFs.  So when you invest in multiple assets as an investor, all assets put together is your portfolio.

WHY PORTFOLIO MANAGEMENT MATTERS:  It is not longer a news that, market go up and down. No assets rises forever, so as times goes assets fall. But good portfolio management helps you reduce risk, protect your capital, avoid emotional decisions, grow your steadily and finally survive market crashes. And frankly speaking without proper management, investing becomes speculation.
BELOW ARE THE KEY PRINCIPLES OF PORTFOLIO MANAGEMENT EVERY INVESTOR SHOULD KNOW.

DIVERSIFICATION:  as an investor  it's is advisable not to put all your money in one assets, Because if you put all your money in one coin or stock and it crashes, your capital suffers heavily. So do well to spread your money across other investments to reduce risk.

ASSET ALLOCATION:  as an investor, this is where you decide how you will allocate cross different investments, Let's take for instance, higher risk assets for growth, while the lower risk assets for stability. And your allocation should depend on your, income and risk tolerance very important.

RISK MANAGEMENT: it is not longer news that every investment carries risk, So Good Portfolio management means, avoiding hype driving decisions, having a clear plan before diving into any investment, and lastly never to invest money you can't afford to lose.

REBALANCING: as we all know, in the long run some investments grow faster than the others. So rebalancing helps you as an investor to maintain your original strategy by adjusting your portfolio when necessary.
COMMON MISTAKES INVESTORS MAKE.

Some investors have the habit of Puting all their eggs in one basket, as investing all their money in one asset.
Further more, Having no long term plans,  following social media hype, ignoring risk management and lastly trading emotionally.

I will leave you guys with this few questions.

1, do you actively manage your portfolio or you just buy and hold?

2, how often do you rebalance?

3, lastly, do you invest your money across different asset classes?

[Agbamoni]

DIVERSIFICATION:  as an investor  it's is advisable not to put all your money in one assets, Because if you put all your money in one coin or stock and it crashes, your capital suffers heavily. So do well to spread your money across other investments to reduce risk.

And if you put all your money into different assets and they crash, you lose everything. Diversification is a broad topic in its own right, and I feel it is less discussed.

Spreading your income across several assets does not guarantee a successful diversification. In diversification, there must be a primary asset and secondary assets. The primary asset is where your biggest interest lies, it could also mean your biggest risk. And then your secondary asset is where you diversify. Now you diversify into an asset with low risk. In stocks, we call it mutual funds. In mutual funds, the risk is spread across all investors, and dividends are shared while capital is in safe hands.

I have seen people mistake intent in crypto. Folks diversifying into meme coins, shitcoins in general. If diversification is there to protect your capital, why invest it in the most risky coins? For me, I think diversification should be done with tangible assets like Gold, land, etc. While Bitcoin can be the primary asset.

[SatoPrincess]

I just buy and hodl bitcoin. I also have a couple other crypto I own but I don’t hodl them for long, those are usually short term investments.

I don’t understand your concept of “rebalance”. Do you mean swapping coins?

[Sticky Bomb]

DIVERSIFICATION:  as an investor  it's is advisable not to put all your money in one assets, Because if you put all your money in one coin or stock and it crashes, your capital suffers heavily. So do well to spread your money across other investments to reduce risk.

Yeah, diversification is good, it creates more security in your investments but you've to ensure you're diversifying into good performing assets and not just hyped assets else it would really mess up your finances and your portfolio.

1, do you actively manage your portfolio or you just buy and hold?

Yeah, depending on the assets, in Bitcoin accumulation, I only manage my portfolio by increasing my stash and holding and I don't sell high and buy low. My agricultural investment have a different kind of management entirely to ensure it remains profitable

3, lastly, do you invest your money across different asset classes?

Sure, I'm into Bitcoin and Agriculture. I also see myself as an asset and I invest into my self to upgrade my skills so I can deliver better quality services to my clients.

[Frankolala]

I am only buying and hodli because I'm accumulating for the future. I didn't diversify into any other investments for now, I am only holding bitcoin and cash. I have the intention to diversify when my bitcoin portfolio has gotten up tp 60% of my bitcoin target. However, I have a little business that I'm managing.

[Son Of Blockchain (SOB)]

 Since  Bitcoin is the best for investment and other Cryptocurrencies rely on it to thrive then I don't see any reason to diversify into them, it’s very risky since most of them are classified into pump and dumps. Diversifying is not a bad idea but diversifying between different cryptos is where the problem is, so it's better to diversify from Bitcoin to stocks or real estate.
 Also, it is true that every good investment have their risk management since they all have their risks and when learning the basics of any investment you'll definitely learn to manage the risks involved in what you're investing in. It's unwise to learn about an investment without learning how to manage the risk involved.

[Joy- maker]

I don’t understand your concept of “rebalance”. Do you mean swapping coins?

No, that is not what I meant. Rebalancing simply means adjusting your portfolio back to your original plan, Let's take for instance you invest 50 percent of your capital in stocks, 30 percent in crypto and 20 percent in cash your original plan. And after some time, stocks then performance very well and grow faster than others, your portfolio will now look this, 65 percent for stocks, 25 percent for crypto and 10 percent for cash, and deep down this is not your original plan. At this point you are taking more risk than you intended Because stocks now make a big portfolio. I don't know if you will be satisfy with this explanation, just in case you need  more explanation am here for you.

[Cryptomultiplier]

Portfolio management isn't just a knowledge that only rich persons should acquire. It is for everyone both rich and poor who are enlightened enough and want their money to work for them too to bring profit. It helps one keep more of what they earn and it is a big difference between having a great strategy and simply hoping for a better result in the end.

[Nathrixxx]

As investors we have to be more professional and show ourselves approved in what we do, because we cannot betrayed in or investing and still yet expect from maximum delivery, we also have to be more informed about the crypto cycle and what is going on, have a dedicated time to be learning on the new update and being focused on what we do than allowing distraction to take most of our time.

Managing our portfolio could help a lot, because we have to develop a particular strategy that could help achieve this effectively, distance from the income we made what we are investing and the pattern we use to accumulate our investment together with the storage we have them into, everything must be done professionally in order to have the maximum productivity of our investment if we truly want to excel in it, if we plan it we are going to have it the way we wanted, this may only take time and process before the actual realization.

[Marvelockg]

DIVERSIFICATION:  as an investor  it's is advisable not to put all your money in one assets, Because if you put all your money in one coin or stock and it crashes, your capital suffers heavily. So do well to spread your money across other investments to reduce risk.

If you look at the concept of diversification from just a single angle, you might miss it out real big because there is no way you can completely talk about diversification while looking at the advantage of spreading your asset and not miss it knowing that you likely don't have enough capital that will easily spread across all your investment choices. An asset like bitcoin that takes time before it eventually gets really bullish needs the investor to put in much into it if not, a bull will have little positive effect on the investment same is the case with most other asset. scattering your investment is a good thing but at the same time, if you are not careful about it, you might just end up scattering it into different wrong investment choices.

if you are enthusiastic about bitcoin, there is nothing wrong focusing on bitcoin alone. sometimes, concentration yield better result than trying to scater your eggs in different basket.
 

[Dr.Bitcoin_Strange]

My crypto portfolio only holds Bitcoin, investing on other altcoins as a means of diversifying, is like gambling to me because I'm no longer a fan of altcoins due to old experience. I invested in other assets apart from Bitcoin but those assets are not crypto related and the risk not big. Some people say having all your eggs in one basket is bad but yet you will see them having all their assets in crypto, probably different shitcoins and small Bitcoin. If you want to diversify, it should be on a different asset entirely.

[Jubilee58]

DIVERSIFICATION:  as an investor  it's is advisable not to put all your money in one assets, Because if you put all your money in one coin or stock and it crashes, your capital suffers heavily. So do well to spread your money across other investments to reduce risk.

ASSET ALLOCATION:  as an investor, this is where you decide how you will allocate cross different investments, Let's take for instance, higher risk assets for growth, while the lower risk assets for stability. And your allocation should depend on your, income and risk tolerance very important.

RISK MANAGEMENT: it is not longer news that every investment carries risk, So Good Portfolio management means, avoiding hype driving decisions, having a clear plan before diving into any investment, and lastly never to invest money you can't afford to lose.

REBALANCING: as we all know, in the long run some investments grow faster than the others. So rebalancing helps you as an investor to maintain your original strategy by adjusting your portfolio when necessary.
COMMON MISTAKES INVESTORS MAKE.

Some investors have the habit of Puting all their eggs in one basket, as investing all their money in one asset.
Further more, Having no long term plans,  following social media hype, ignoring risk management and lastly trading emotionally.

I will leave you guys with this few questions.

1, do you actively manage your portfolio or you just buy and hold?

2, how often do you rebalance?

3, lastly, do you invest your money across different asset classes?

When it comes to investing, diversification is a key factor that every investor should consider if really you want to be successful in your investment journey. We have different asset class, some people delight investing in cryptocurrency and some delight in stock etc, which ever one you have chosen, ensure you spread your investment across different asset, that will actually help you to reduce risk of loosing your money if any one crashes, and enable you to make some profit in the long run as different asset might have different growth rate.

Most times, the type of asset an investor chooses to invest depends on his or her risk tolerance, while some investors like low risk investment, others like high risk investment. However, some investors would like the combination of low and high risk investment anticipating to grow some investment rapidly and at thesame time gaining stable investment.

As an investor, it is necessary to monitor your investment portfolio, the reason being that , it will enable you to know if your investment is really performing well or not, and should in case your investment is not performing well, and is going in the opposite direction, you will be able to make changes when necessary.

As for me , I invested in different assets including bitcoin, I monitor them from time to time, and any asset that is not performing as expected and is not doing well, I make changes but not very often.

[Iroh]

It's only natural. You've got to manage your portfolio effectively in order for it to grow. It's one thing to know the best suitable investment for you, it's another to manage it for it to give you the desired profits. Think of it like a seedling. You've got to nurture and care for it. Watching over it till it grows a bit and doesn't need constant supervision and then grows again and starts producing fruits. Same with any investment. You've got to watch over it and make changes whenever necessary.

Diversification can never be talked about enough. It's important to diversify and not put all of your money into a single investment. When using a fishing rod, you catch a single fish, but when casting your net over a wide area, the possibility of having a bigger catch increases.

[I_Anime]

DIVERSIFICATION:  as an investor  it's is advisable not to put all your money in one assets, Because if you put all your money in one coin or stock and it crashes, your capital suffers heavily. So do well to spread your money across other investments to reduce risk.

It also have his down side too. I’ve took noticed that most folks in this space  usually diversify with altcoins , which normally has higher risks than bitcoin (while some others choose to diversify inorder assets outside this space ).

Imagine buying bitcoin with some shitcoins (which is way riskier than the other digital assets ), as a form of diversification. And you know Bitcoin is like their father , and anything that happens to Bitcoin will surely affect the others . Now imagine Bitcoin dipping , like dropping massively what do you think will happen to the other shitcoins in your portfolio, they will literally drop also and when bitcoin endup recovering they might not recover from theirs.

So if you want to diversify inorder assets, is not something will rush is something one should take he or her time to research about first before diversifying.

[Itz-prisigold]

I will leave you guys with this few questions.

1, do you actively manage your portfolio or you just buy and hold?

3, lastly, do you invest your money across different asset classes?

1. Seriously I can't just buy and disappear just like that and  I still don't even buy if I don't think I will want to actively manage that investment. I believe in actively managing my investment. I may hold some of my assets long term,  but I still want to look at them sometimes to see if they still align with my goals.

We all know that the market does change,  so I think that it's important to adjust when it's necessary rather than being completely passive. Buy and hold is good but I don't think it's smart to blind buy and hold without monitoring. It can actually be very risky.

2. I also don't ever just choose one investment. I try as much as possible to spread my investments across every asset class. I am not going to stick every dollar I have into one asset,  even if it seems like it will go to the moon. I like to construct my investments in such a way that I protect myself in case one sector underperforms,  that can sometimes provide me a bit of a safer zone.

For me, It’s more about growing my money while still playing it smart, It may not actually give me the fastest returns,  but it will definitely help me to  manage risk better and I can be able to have a very good  peaceful sleep at night.