Introduction

As an investor, you have to learn how to manage your money and your investments. Money is not easy to come by, and large or small capital, managing to invest them right is important. This lecture taught us how to manage our capital, invest rightly, and take profit properly, to avoid greed and maximise profits.

This post is an attempt to complete the homework task;

HomeWork Task 7.
Make a Homework Task 7 Post on the below Topics which you can also discuss according to your views on it, and try to explore it as much as possible but in simple terms.

• Discussed Money Management.

• Future plan on your Money Management.

• Discussed Portfolio Management, if you have an investment and if it is okay with you then show portfolio and explore it briefly.

• Future plan on your Portfolio Management.

• When was the last investment failed and Why? (those who have experienced this can provide views.)

• Conclusion.

1. Discuss Money Management

Money management is the skill of being able to allocate your capital to the right investments. There are a lot of coins, and there can be confusion as to whether to buy just your favourite coin, or buy many. Good money management teaches you to be wiser about picking premium investments.

Its wiser to split your capital into 3 or 4 places, and after technical analysis, buy coins for long term, mid term and short term.

Short term coins are those that technically look like they are about to experience some bullishness and then retrace, here you can set profit targets and sell, to buy at potential dips. They are potentially held for a few months or less than 20 months. you can switch between coins here, depending on where you confirm a buy signal.

BNB 1-day chart

Mid term are those that you can hold for 2-5 years, usually coins that are steady bullish, and look to peak certain levels in a few years time. they grow slower than the short term but are relatively fast. They are a bit stable.

TRX 1-week chart

Long term or as I like to call them, Insurance coins are the third type, but by no means the least. They are usually large market cap coins and they are more stable. They produce better returns over the years, and can even be used as a retirement plan (for me). They are stable and have less chances of making significant losses.

BTC 1-day chart

Splitting your capital this way reduces risk of total loss, and chances of missing a boom in a particular market too.

2. Future plan on your Money Management.

Like I stated above, I split my crypto portfolio into 3, one for short term trading, one for mid term holding, and then the insurance coins I use as stable long term investments.

Before this class I had no idea how many percent to invest in each of the categories, but while going through the class, I got a little clarity.

Still in school, and funding myself has hindered my ability to invest hugely. Soon, I aim to make some investments from my savings.
For the short term, I'll sample out 20% of my capital for short term trading. follow signals and trade for profits. I'll use 20% because its more volatile and needs less capital to produce max profits. So I'll risk less here.

The mid term investment will take 30% of the capital, seeing this is more stable, we increase our investment here.

The long term investments will take 50% of the capital, since they are less likely to disappoint and in 10-20 years are looking to produce immeasurable yield. Their stability provides room for confidence to invest high.

3. Discussed Portfolio Management, if you have an investment and if it is okay with you then show portfolio and explore it briefly.

I do not have BTC yet as the capital isn't here yet, but the short term and mid term investments, I can show.

Short term:
On the short term scale, I have held AAVE for 7 months now, buying at and I intend selling soon.

my wallet

I intend on taking my profit at $525 level. If you look at the daily chart below, you can see a double bottom formed, and tweezer bottoms at the right dip. All these are bullish signals and price looks to get there within april. Paradventure it fails, and sells, I'll sell if it breaks the $295 support.

AAVE 1 day chart

Mid Term:
For the did term, I chose TRX. reason being, I have been a fan of the cheapness and speed of the TRC-20 and believe it will give the ERC-20 a run for its money, and it has already started happening. ! bought june last year at 8 naira, it is now at 30 naira.

I intend on selling at $1, and technically there is no indication pointing to that price level yet, we hope that massive adoption of the TRC-20 will bring TRX to the limelight

5. Future plan on your Portfolio Management.

Well from the indications above, I have a little for my short term and long term investments. This year , I hope to acquire at least 0.25 BTC, and keep increasing my portfolio on BTC till when I'm prepared to retire from financial activities. I want it to serve as my life insurance/pension. Achieveing this, this year would be difficult because I have my mbbs coming, but I believe difficult is far from impossible.

For the mid term TRX, I wish to get up to 30,000 and through steemit, it looks more than feasible, and gladly, I do not have to spend money on acquiring it.

Hopefully, AAVE will hit my target level ($525) in no time and I can sell for some BNB. Then hold BNB for 20 months or less.

6. When was the last investment failed and Why? (those who have experienced this can provide views.)

I have not really had a failed investment so I am sorry I cannot say much here.

But, couple of years ago, I was able to acquire 2 ETH, it was really cheap back then, cost me 40,000 naira. I panic sold it last year at 90,000 when the corona dip happened. Today Those two would have been worth 2.4 million naira.

Conclusion

As always, every investor should follow these rules:

1. Review your goals
2. Make a plan
3. Manage your money
4. Invest what you can afford
5. Diversify
6. Manage your portfolio
7. Invest regularly and continuously
8. Be disciplined! follow your strategy.

Special thanks to @stream4u for this wonderful class and the assignment that has made me to research and expand my knowledge

cc:
@stream4u
@steemcurator01
@steemcurator02