25/08/2021
Trees grow stronger and taller when their underlying roots grow. Common sense, right?
Similarly, many assets grow in value only when the underlying business grows. In stocks, this means the business model becoming profitable. In crypto, it can be underlying blockchain being adopted and what solution it brings.
The process of assessing the strength of these underlying to an is called . It gives the answer to the questions: "why do this particular asset stand out from the rest? Why should I consider it serious?"
As you can infer, this information is priceless. In , you will be only as good as your is. Start teaching yourself the art of asset picking now!
23/08/2021
Putting your eggs in different baskets is one sure way of protecting them. However, mother hen only lay eggs is one private place so she can take care of them until they hatch into chickens.
Not surprisingly, the same can be said about . your capital will protect you from some risks, but it will also minimize your returns.
A savvy investor is always looking for how to make the maximum returns while bearing as less risks as possible. This means sometimes being less diversified or going 'all in' in an investment if potential rewards weigh stronger than the risks.
How much you should be , therefore depends on your understanding of risks and rewards involved in a particular , your , your and risk tolerance.
22/08/2021
Mistakes is surely part of the way we learn. However, some lessons are so costly, so much so that we wish we should have known it before. In and , these are like:
1. Not investing at all
2. while thinking that you are
3. Trusting what experts say a lot
4. without an
18/08/2021
One of the most important things in is to form your own opinions about the markets. Do not invest based on any expert's opinions.
