Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Negotiation
on 02/02/2024, 13:50:16 UTC
An emergency fund is definitely important for investing but not all investors can invest by building an emergency fund. There are some investors who have a small amount of money to invest and they start their investment with that small amount of money and do not build up additional funds. Additional endowment is usually done to ensure continuity of investment in which case those who have good financial support can create additional funds to ensure continuity of investment. But I think it has to be done as an investor has no such thing. Emergency fund can be stressful for some people and surely an investor can't hold his investment for a long time with pressure so those investors can invest as they want in this case there is no need to take this pressure. Investors can invest as and when they want and with as much comfort as they can invest, so if it is not possible to build additional funds, then there is no reason to take this matter as a pressure at all. Additional funds can be taken by an investor only as an optional means.
You might be mistaking emergency funds for something else. Before becoming an investor, you are expected to have already built an emergency fund before considering investment because it is the emergency fund that will enable you hold the investment for a long time. I think a proper understanding of the sequence is important at this point to avoid making a mistake.

The first thing that seems to me is that if a person is to be financially self-sufficient or to manage economic affairs well, he should have enough knowledge about them. The important point here is that if one does not have the knowledge or ability to manage finances, he will fail to manage whatever money he has. Now you need to understand what percentage of money you will invest and how many weeks to keep the destruction money reserve, which is the best way to use it later if there is a problem. Many people face the problem that while investing they end up investing all the money they have and later when they need half of it, they end up with a loan which causes a lot of problems. You should always think that 70% percent of what you have going to invest and 30% percent you keep for yourself is wise and those who invest like this. But those who choose to take a lot of risks are different and viewed differently.

Investment Management: More Than Just Buying and Selling Stocks. if you can see it for idea.