Tired of News? Join Medium and read more interesting articles here! Or If you want to learn more about Medium. Or more here.
Cats 🐱 are probably the most frugal and intelligent mammals on the planet. They know how to stalk, hunt, and catch their prey, how to ration their food supplies, when to conserve energy and cease all unnecessary activity, and when to give up and go home. In short, cats are natural investors. Investing is not rocket science. It is simply common sense that you would expect from anyone who aspires to become rich someday. Yet most people don't think like a cat when it comes to investing – which may be one of the reasons why there aren't many rich cats in the world today. In this post, we take a look at how you can invest like a cat by following five simple principles that even a cat won't ignore:
Don't invest in anything you don't understand
Investing in financial assets or instruments like stocks, bonds, mutual funds, ETFs, and commodities involves a certain amount of risk, no matter how conservatively you choose to invest. The key to successful investing is understanding the risks involved in each investment you make so that you can take steps to minimize your risk and avoid unnecessary losses. Suppose you don't know how a particular investment works and its risks, you shouldn't invest in it. You increase your chances of losing your money if you don't see what you are getting into. When you understand an investment, you can make informed decisions and manage your risk better. Investments that are too complex or that you don't fully understand are best left to experts or professionals. Otherwise, you may find yourself losing money when you least expect it. Investing in things you don't understand is an invitation to lose money.
Don't let your emotions run your investment decisions
Investing is not a game of luck. Investing is a game of calculated risk-taking and decision-making. Investing is not a lottery either. It is not a matter of hoping and praying that your investment decision will be a lucky one. Most people make investment decisions based on their emotions, not logic. They buy because they hope the price will go up. They sell because they are afraid the price will go down. They chase the latest investment fad because of greed. They panic and sell when the price goes down because of fear. These are all terrible reasons to invest. When you invest based on emotions, you set yourself up for losses.
Invest only in things that have intrinsic value
A stock is not just a share of a company's profits. It is a portion of an ongoing business operation that earns money, pays dividends, and produces capital gains. You should invest only in things that have intrinsic value, i.e. things you can put a tangible value on. Investing in things that don't have intrinsic value is a good way to lose your money. If a company doesn't have any real assets or products or doesn't make any money, it's probably a bad investment. Investing in companies selling products or services people need and want is a good way to make money. If people need or want something, there is a good chance they will pay to get it. Investing in things with intrinsic value is a better bet than investing in things that don't.
Buy low, sell high
The best time to buy something is when its price is low. The best time to sell is when the price is high. If you can master the skill of buying low and selling high, you have a good chance of making a profit. You can't time the market but can time your investment decision. The best time to invest is when the investment opportunity is at its lowest point and when there is maximum pessimism about the investment. This way, you can buy low and hopefully sell high. Investing when the price is high is a good way to lose money. You can't time the market but can time your investment decision.
BUT...
Do not try to rationalize the market. Instead, here are ten ways to become a cat 🐱 investor:
1️⃣Never try to be persuaded to be reasonable in the market
2️⃣Don't be foolish about timing the market
3️⃣Don't look for the meaning of the market
4️⃣It is better to be different views about the market
5️⃣Forget about being rich in the market
6️⃣Follow the market trend even if it is in the bear market
7️⃣Do not fear losing the investment
8️⃣Don't check the market every day
9️⃣Focus on enjoying the long-term gain rather than short-term pain
1️⃣0️⃣Invest as passively as possible
Conclusion
Investing is a long-term game. You can't expect to see a quick return on your investment. To get rich quick, you must become a thief or drug dealer. If you want to get rich slowly but steadily, you must learn to treat investing like a cat. You have to be patient, save money, take calculated risks, understand the risks involved, and invest in things with intrinsic value. You have to buy low and sell high. You have to stalk, hunt, catch and kill your prey. And you have to do all these things without letting your emotions run your investment decisions. If you can do all these things, you have a good chance of becoming a successful investor. You may not get rich overnight, but you will eventually get there.
Note: the post was shared on multiple platforms here.
You can refer my previous article lists here and here
------------------------
2022 Prediction
2022 Prediction #1: L1 Scalability
2022 Prediction #2: L2 Bridges
2022 Prediction #3: Zero-Knowledge Proofs or ZKPs
2022 Prediction #4: Regulated Defi On-Chain KYC
2022 Prediction #5: Institutional Crypto Adoption
2022 Prediction #6: Defi Insurance
2022 Prediction #7: NFTs-Based Communities - DAO 1.5
2022 Prediction #8: Metaverse and NFTs
2022 Prediction #9: Web2 Companies’ FOMO
2022 Prediction #10: Time for DAO 2.0
------------------------
DAO The Way
DAO The Way Part 1
DAO The Way Part 2
DAO The Way Part 3
DAO The Way Part 4
DAO The Way Part 5
DAO The Way Part 6
DAO The Way Part 7
DAO The Way Part 8
DAO The Way Part 9
DAO The Way Part 10
DAO The Way Part 11
DAO The Way Part 12
DAO The Way Part 13
------------------------
Learn How To Defi
Learn How To Defi Part 1
Learn How To Defi Part 2
Learn How To Defi Part 3
Learn How To Defi Part 4
Learn How To Defi Part 5
------------------------
Crypto Comics
Crypto Comics
Crypto Comics - PoW
Crypto Comics - Who is Satoshi
Crypto Comics - What is Token
Crypto Comics - What is DeFi
Crypto Comics - What is Wallet
Crypto Comics - What is HODL
Crypto Comics - What is Coinbase
Crypto Comics - What is PoS
Crypto Comics - What is DAO
Crypto Comics - What is A Block
Crypto Comics - What is NFT
Crypto Comics - What is Fork
Crypto Comics - What is Web3
Crypto Comics - What is DeFi-2
Crypto Comics - What is Yearn Finance
Crypto Comics - What is Degen
Crypto Comics - What is Aping
Crypto Comics - What is Cold Wallet
Crypto Comics - What is Hot Wallet
Crypto Comics - What is Airdrop
Crypto Comics - What is DYOR
Crypto Comics - What is 65537
Crypto Comics - What is RC4
Crypto Comics - What is WAGMI
Crypto Comics - What is Bagholder
Crypto Comics - What is Decentralization
Crypto Comics - What is Wallet Address
Crypto Comics - What is Plagiarism in Web3
Crypto Comics - What is Bart Pattern
Crypto Comics - What is Encryption
Crypto Comics - What is Consensus
Crypto Comics - What is Protocol
Crypto Comics - What is Stablecoin
Crypto Comics - What is ApeCoin
Crypto Comics - What is FOMO
Crypto Comics - What is Tokenomics
Crypto Comics - What is APR
Crypto Comics - What is to The Moon
------------------------
Learn Web3 in 100 Days
Learn Web3 in 100 Days - #1 What is the Internet and How Relevant to Web3
Learn Web3 in 100 Days - Day 2: What are the Browsers and Servers
Learn Web3 in 100 Days - Day 3: What are HTTP Status Code
Learn Web3 in 100 Days - Day 4: HTML and CSS and JS
Learn Web3 in 100 Days - Day 5: What is programming
Learn Web3 in 100 Days - Day 6: Markup, Elements, Tags, and Hyperlinks
Learn Web3 in 100 Days - Day 7: Style Your Web
Learn Web3 in 100 Days - Day 8: JS
Learn Web3 in 100 Days - Day 9: SQL
Learn Web3 in 100 Days - Day 10: Front-End
Learn Web3 in 100 Days - Day 11: Front-End Framework
Learn Web3 in 100 Days - Day 12: More HTML
------------------------
Modern Economic Nonsense
Modern Economic Nonsense - Inflation and Incentives
Modern Economical Nonsense - The Astrologist's Way
Modern Economical Nonsense - The VUCA World
Modern Economical Nonsense - Zug Tax and How to Run your Own Monopoly
Modern Economical Nonsense - Participatory Economy
Modern Economical Nonsense - Economic Models
Modern Economical Nonsense - Tokenomic Models
Modern Economical Nonsense - Design A Reputation-Based System
Modern Economical Nonsense — The Money Problem
Modern Economical Nonsense — The Treasury Problem
Modern Economic Nonsense — Bitcoin vs. Real Estate
Modern Economic Nonsense — A very long term view
Modern Economic Nonsense — Banking Collapse
Modern Economic Nonsense — A Wall Street Legend
Modern Economic Nonsense — A Modern Alchemy
Modern Economic Nonsense — Founder goes ghosting
Modern Economic Nonsense — Anonymous cool or fool
Modern Economic Nonsense — The market volatility
Modern Economic Nonsense — The money shortage
Modern Economic Nonsense — The web3 scams or not
Modern Economic Nonsense — All about debts
Modern Economic Nonsense — Metaverse is still relevant or not
Modern Economic Nonsense — A Show of Recession
Modern Economic Nonsense — A Myth of Valuation
Modern Economic Nonsense — Inflation becomes irrelevant
Modern Economic Nonsense — A journey of money laundering
Modern Economic Nonsense — Consumer Sentiment Might Be Low
Modern Economic Nonsense — Is payment technology still relevant in high inflation environment
Modern Economic Nonsense — Recession is coming
Modern Economic Nonsense — We are at the bear market, now what
------------------------
Yearn Finance Comic
Yearn Finance Comic - Part 1
Yearn Finance Comic - Part 2
Yearn Finance Comic - Part 3
Yearn Finance Comic - Part 4
Yearn Finance Comic — Part 5
Yearn Finance Comic - Part 6
------------------------
Curated Lists
Curated Lists - Web3 Culture
Curated Lists - Crypto-enabled Communities
Curated Lists - Crypto Philosophy
------------------------
Defi 101
Defi 101 - Part 1
Defi 101 — Part 2
------------------------
Thoughts
Thoughts about VC and PleasrDAO x BitDAO
The Crypto Market has Changed
The Myth of Inflation Hedge
The Myth of Stablecoin
The Myth of NFT
End of the Crypto Market?
The End of the Stablecoin?
Terra-UST Saga - How to repair the trust when there is no trust built on
How to deal with negative market sentiment
------------------------
Crypto VC Thoughts
Crypto VC Thoughts: Physical Assets vs Digital Assets
Crypto VC Thoughts: Digital Money Pushes Energy Companies to Innovate
Crypto VC Thoughts: GameFi Dilemma
Crypto VC Thoughts: Credit Oceans
Crypto VC Thoughts: The Death of Terra
Crypto VC Thoughts: Debunk Bitcoin Myths
Crypto VC Thoughts: Defense Crypto Investment Methods
Crypto VC Thoughts: New Type of Stablecoin
Crypto VC Thoughts: Crypto Business Cycle
Crypto VC Thoughts: Crypto Business Cycle 2
-------------------------------------------------------------------------------------
Disclosure: The article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters. You should not believe any words this author wrote or you may experience similar symptoms or even possibly become a nut job.
