The Art of Investing. Do You Want to Be Part of It? A Few Simple Steps to Follow!
Let’s talk about investing. It’s an art, a very precise one. The richest people in the World are actually investors. If you invest properly, it will give you the opportunity to make money while having fun (not actually working). And yet, you should still keep working to grow, because an investment that is brilliant today may be at its end tomorrow. Take a look at Huawei, they are restricted by Google from using Android OS, the Google Play Store and also the whole USA is restricting the selling of their physical phones as well. Did you invest in Huawei? It’s in some rough times now.
Invest the Money You Have Spare Now
This has been said and it will be repeated for million times until the whole World understands it. And we will continue to repeat it because it’s a fact. Always, literally, always, invest money that you are willing to lose. Every investment has its risks. No matter what. Even if you invest in real estate. You just simply do not know what can happen and if your insurance will cover the damages. Now, imagine, you had R6 000 000 and you have invested them in buying a flat or house. Afterwards, you start renting it, but unfortunately, there is a water leak or electricity problem and the whole house/flat is damaged. Even if your insurance covers the damages, it will take time for the whole investigation process, then recovering, then finding new tenants and you still need to pay the bank every month.
And this is a simple case when you have actually good cover from the insurance and there are no extra costs that you should pay. But to get back that huge investment it will take years because the rents are not high compared to the actual flat/house price ( R30 000 p/m). Add to that the risk of having bad tenants that are not really taking care of your households, and many more problems.
The moral of the story is that all type of investments hides risks. Some higher, some lesser, but those that have higher risks return a higher payback for a shorter period of time. Just be patient.
Wait for the Right Moment
If you are into cryptocurrency the vital point is to wait for the right moment to sell or reinvest. Many people are losing just because of missing that moment. And to be honest, there isn’t an exact, spot-on moment. It’s more like a range of time when certain actions should be taken. What actually helps in such moments is being aware and also how deep your research was in a time when the prices were low or no high enough for a good return in your investments.
If you are long enough in the game, you will start to naturally feel when the right moment is, but if you are aiming for maximum profit, I have some bad news for you. It starts to be more about luck, not actual knowledge and experience. If you sell when the peak is, it’s just luck. Or if you invest when the peak is, hoping that the prices will still go up, it’s luck again, but bad luck this time.
Do not be afraid to re-invest. If you are a believer and you hope that there is a future in cryptocurrency, just do it. It doesn’t matter if the prices are still going down. If you have spare FIAT currency to spend, that’s a good bet. Definitely better than putting them in a bank and getting less than 0.05% per year, but making the bankers richer and richer. But this is purely my opinion! I would invest and never would I actually put my money in a bank just leaving it there.
Did you know that banks are actually using your money to buy and resell assets, like real estate and lands? And I am very sure that they take part in the cryptocurrency game too!
If You Harvest Your Investments, Don’t Do It Completely but Always Re-invest Back. Keep Your Self in the Game.
This is what many people do. Let’s say, they are investing let’s say R100 000 in cryptocurrency. When the prices go up and they have a profit, they convert the cryptocurrency back into fiat and withdraw all of it. They take their leave completely out of cryptocurrency. But that’s just a one time hit. Sooner or later, that money will vanish and then the same people will think about how to invest again in cryptocurrency. The problem is that this time their luck may not work out in their favour again. And actually, it can take years to get close to the investments from before.
That’s why, it’s good to invest and whenever you are willing to withdraw, do not go over 50% of what you have. Always keep yourself in the game. When the prices start going down then you should sell, and when the prices start to go up then you should buy.
Educate Yourself Continuously
Another mistake that many people as investors do is not reading and educating themselves enough. It’s an Investing world. Everything is changing within seconds. New trends, new tech ideas, new use cases among other scenarios. If you do not read enough and keep yourself up-to-date with your investments, most people are probably going to lose your money. But if you educate yourself, the chance to know when to re-invest and harvest your investment will be more accurate and profitable!
And… Re-invest Again
I am gonna be quite short here. Yes, you gotta keep investing and investing if you actually want to make wealth out of it. No one in history has become wealthy with just one investment. There is no way, if you want to become wealthy, you should actually invest a huge amount of money and have them back x2, x3 times more. That’s why re-investment is key. And also, this is the reason why I have mentioned above that keeping yourself in the game is essential!
Sell When the Prices Go Down, Not When They Go Up!
One of the mistakes that people do is selling when the prices are going up, or kind of “Stop” increasing. That’s not really the right moment to sell, as you can’t know (also no one can) if the prices will still going up. But, if they start dropping, and dropping now this is the time to sell. If in time they start to go up again, buy. Then when they start going down again – sell. Basically, it will happen that you will buy and sell in the middle of the bottom and peak. The golden middle. Again, this is not something that works 100% of times. It always has its own risks!
Do Not Fall Into the Trap of “Feelings”, You Will Lose the Game!
Trading is an art. And most people stop doing it because it involves feelings. When you trade with feelings, you lose. It’s as simple as that. Common sense, cold-blooded, relying on facts, daily research are the key factors in better trading and investment. But many people, even the top traders sometimes lose because of their feelings and emotions. The trading game is a tough game, for big men. And it’s a very long topic to talk about. You find yourself listening to someone who actually has the experience of failing just because of involved feelings and emotions in their daily trading life. Go do some research and you will find plenty of stories like that.
It’s very similar to motorcycle riders. Ask those who had the bad experience with falling and how it happened, do not ask those that are getting along in age with many, many years of the ride without falling. They can’t teach you, as they have never burned themselves. They have never risked enough or have never been passionate enough to dive into deeper waters.
Every Investor Has Lost but Kept Going.
If there is someone who claims a 100% success rate in trading – RUN. That’s a pure scam scheme! There is no such thing as an investor who has never lost. Every good investor has lost quite a lot of money throughout the years until they get better and more experienced in what they are doing. If you are going to be an investor be ready to have bad moments in your trading and investing life. It will happen, but you will learn. You will know where you have failed. And keep something very important in your mind. It’s what my father says to me:
The stupid one learns from their mistakes, the smart ones learns from other’s mistakes!
Be smart and always do your research and read daily!
Are you going to invest in cryptocurrency? What are you waiting for? iCE3X is here for you!