Post
Topic
Board Economics
Re: Dont just borrow money but for the right reason
by
qwertyup23
on 23/12/2021, 15:47:54 UTC
Not every rich people made returns from their every investments, I read somewhere the best ever and most successful investor of all time who is Warren Buffett even have the success rate of 6 or 7 out of 10 means you can still lose no matter how good your investment plan is. Never borrow money to invest, just make money and start investing. Life is simple but don't complicate it with things which you can't actually control.
Another thing is to learn to diversify our investment. Diversification is very important but a lot of people never knows that. Like you said: Warren Buffet has the success rate of 6 or 7 out of 10, showing that he doesn’t just invest his money in one, but different assets. Imagine he invested only in one, and that one investment happens to be the one that is not successful, what will he do?

Another very important thing that we need to learn is how to know the right projects to invest in. You have to be able to tell the good ones that are more likely to succeed in the market, if not, it’s going to be a waste of time diversifying. I have seen people who invested in different assets and at the end of the day 90% of their portfolio was a loss.

Investing may look simpler but it needs lot of work in our mind to have better success rate, ofcourse diversifying is one of the important factor we should follow to reduce the risk of losing our capital.

What I feel is many people invest on something without prior knowledge because someone said it will give good returns which is completely wrong and you will regret it, so invest on only thing which you have enough of knowledge no matter it is a company or business or cryptocurrency.

The process of determining which 'instrument' to invest on requires tons of patience, knowledge, and research in order to minimize the risks of losing your money in the process.

Remember that as investors, you must determine whether you aim for short or long-term investments. If you choose the former, it necessarily follows that you have to keep track of the market on a daily basis to earn income. But if you chose the latter, you may somehow rest easy and HODL for long-term which inevitably garners profit on your end (this is primarily basing the price history index of BTC).