Strategic planning "
Each and every investment in a single basket is a point of weakness, as it is certain that there is a chance that the investment applied will be the next google and there is also a chance that it will be a yahoo.
And to build a solid structure it is necessary to diversify the investment so that one investment supports the other investment. It is seen that the crisis does not always happen in several types of investments, it is in one or the other, it is usually a specific sector.
It is necessary to create a plan, but do not forget the essentials, learn to diversify investments, of course you need to study each one to know where you are applying the investment.
In the crypto market, basically you buy coins low and sell high, but most people end up running out of cash and end up having to sell even low. So investment money cannot be mixed with everyday money.
Only personal financial planning that allows you to achieve goals and objectives in life, thus creating a path between your dreams and yourself. Over time we are able to achieve anything we want, after all, there is no goal too big for planning.
Diversification and planning is most important in any investment. I learn it the hard way, make sure to plan and be objective. Short, simple and effective tips dear, keep it up. Have a Great day 😊🙏
Yes, it's true... it's really necessary to diversify all the planning in order not to take so much risk.
Well said. In economics there are three motive of holding cash.
Precautionary motive: which means money is being held in case of any unforeseen reasons.
Speculative Motive: this means money is being held for the purpose of investment.
Transactionary motive: which simply money is kept for the purpose of running day to day activity. This is exactly the point i think you are decribing above. The money we need for daily upkeep should not be mixed with money that we want to use for investing.
wow that's great, you said it all... That's right! Thanks !
Making a good analysis and schedule of your Capital is always helpful in planning.
There is a law in business which states that business is separate from the owner that means making investment is not related to daily expenses money.
Making plans before investment is actually good and having a backup plan after investment is necessary so that you will not have you capital in one basket.
I really wish people will heed to this advice and calculate well before they engage on investment to avoid losses and regret.
Yes, in order to make an investment, you need to study the possible gains and losses and, incidentally, do not mix your day-to-day money with investment because that is for sure bad.