Quote from: Mauser on Today at 09:23:16 AM

Quote from: Davidvictorson on December 03, 2022, 07:44:05 PM

Ty question- Based on your cumulative life experiences, can you share your best money advice with us?

I am not rich and no expert in money management, but I made some good investments over the years that have helped me a lot to finance some of my dreams. The best advice I can give up anybody who is trying to build a portfolio is Diversification. Don't place a your eggs in one basket is the best phrase that I kept in my mind over all these years. Investing and trading always a form of randomness that can't be controlled. Even the best investor is not going to be right 100% with his trades. With that in mind it's best to split our money into multiple investments. Like that we increase our chances to pick good investments while decreasing our overall volatility. Lower volatility means lower risk to lose large sums of money. The more different investments we have the higher the chance that some will perform well when there is a general market downturn.

In investing, diversification is a very important thing, I hope people don't ignore it. But I need to be more clear, diversification means investing in many different sectors, not investing in many products in one area. Like we invest in cryptocurrencies, many people mistakenly believe that to reduce risk, it is better to invest in bitcoin and altcoins. They forget that once bitcoin drops in price, no altcoins can rise, so diversification won't work. Diversification is that we should not invest all of our assets in cryptocurrencies but invest in other areas such as gold or real estate.