Hey there!
Today I'm goign to talk about managing risk, trust and fear while investing. I know it is a very published topic but I want to give my point of view on it.
Risk
Well... By definition, risk is the probability loosing a portion or the total amount you have invested in an asset (financially speaking). You have to be able to mange how much you are willing to risk and never risk more than you are able to loose.
What do I do:
- Make risky investments ONLY with the funds I obtained for free (faucets or similar like Faucet Crypto) that didn't have a repercusion on my economy. This includes buying memecoins expecting for a new DOGE or beting on crypto casinos.
- Make medium risk investments ONLY with the funds I obtained from other investments and not from my bank account. This includes reinvesting the money I get from a rented parking lot or from pool staking some ETH I have. This goes to forex and actions trading.
- Make low risk investments ONLY with the money you are absolutely certain you can loose from your bank account. I buy main coins (ETH and BTC), buy some real state (right now I have one parking lot and planning to buy another), etc.
Trust
This topic is a little bit more controversial. Trust is the ability to be confidential in your investment strategy. To achieve this you need to learn on your own mistakes, improving daily your trading strategy and knowing when to step out.
What do I do:
- Post-its! I have post-its sticked on the wall behind my computer. I write there ideas, achievements, objectives and strategies. I use different colors depending on the risk.
- Constant learning. Track EVERYTHING you make, fees included. Analyze that data and try to extract knowledge from there. Try new exchanges, new strategies, read and share your thoughts...
Fear
Fear is a constant in an investor's life. We fear BTC falling to 0, we fear a war involving the US and the dollar loosing it's value, we fear the apartmen you are renting getting on fire, and many other things. Fear is the word i hear the most from my investor colleges and from my non-investor friends: "I fear loosing it all".
That's why i started with Risk Management. You don't loose it all if you loose one or two investments. You don't have to be afraid to take some risksm to try to take advantage of the system and to grow your wealth. Make money from money, not from your constant work.
What do I do:
- Verbalize my fears: write them down in a piece of paper, explain yourself. Then read it outloud, analyze what could actually go wrong and if that is actually a feasible possibility. For example the possibility of BTC falling to 0 is almost none, but the possibility of loosing money while day-trading is far higher. After that, realize how much do you really want to make that investment. Do you want to keep buying BTC? Or do you prefer Real State? Make what feels comfortable out of the comfort zone.
- Talk with experts: I have the possibility to talk with great investors and seek some advice. Don't be afraid to ask for help or to feel vulnerable. They have been through the same seansations and will understand how you are feeling. Talk, ask for help and really try to learn from them.
Hope this helps and see you next time!
Remember to tip and feel free to send some tips
- NIM: NQ74 061B 5APX UUAD B8B2 HKVN GN20 8ANP YGRD
- FNNC: FZ4y2i4m9P4nMwC4oF1obNFzik2GC2xrNi
- XMR: 46srigF2QEcM4bggmh3Zq8YAhqWGyWJYw9yhzKzYBjgB5Pacib84VwrYurmr9zRY8wJSFAFNycnF3e8C3RexMGqe5JrHv9y
