Steemit Crypto Academy | Homework Task 7 For @stream4u; Money management, Portfolio management etc.
My submission for homework task set by @stream4u which is about money management and portfolio management.
Discuss Money Management.
As for i understand the concept of meney management, it is a broader term which includes every aspect linked to money and in every field which involve money. It may range from management of your pocket money to your large cap businesses. But here we are more concerned about money management for trade and investment purpose. In that context, money management refers to strategic techniques to maximize the profit out of minimum investment made.
Money management therefore involves, minimizing investment into assets with less return or we can say, no investment in assets that does not offer return. Further moving, always look for cost effective alternative to your investment. So the better management we learn, better the control we have over our money.
Future plan on your Money Management.
As i mentioned earlier, i look at this term in broader perspective, i am planning to spend offline on pharmaceutical company. As i am from same field, i know where to spend, how much to spend and when. Also, i am investing online in cryptos too. Currently, i am making online trade with crypto coins like Bitcoin , Etherium, Ripple, BNB. I am not holding these assets but i am using them for making transactions. It was because i had no experience of crypto trading. I believe with the launch of this programme and participating in lessons organised by cryptoprofessors, i have got basic knowledge. I think wirh some more reserch, i am going to give it a try.
Discussed Portfolio Management, if you have an investment and if it is okay with you then show portfolio and explore it briefly.
Portfolio in case of Crypto refers to variety of crypto coins that you have invested in.
Portfolio management refers to management of crypto coins. The basic principle of portfolio management in cryptos that everyone should keep in mind is "never ever invest your all funds in one cryptocoin ". The logic is simple, that is volatility of the price . As we all know that crypto coins have no intrinsic price value, price is wholly and solely determined by the demand in the market ( keeping aside stablecoins ). Therefore it is a sane practice to invest your funds in 3 to 4 cryptos. It is because if the price of one asset goes down the others may be bullish, so as to compensate the loss due to bearish coins.
Future plan on your Portfolio Management.
I am planning to invest in BTC as it is well established in market. But keeping the price volatility in view, i am going to diversify my portfolio by making small investments in 4 to 5 cryptos. The other coins which i am aiming at are there in my watchlist.
I am trying to gain some user experience further and than I'll start holding assets.
When was the last investment failed and Why? (those who have experienced this can provide views.)
I think in last 6 months i have been exchanging steem for fiat although it was never huge sum but i believe all of them were my failure it is because i used to deposit steem to binance, exchange it with BNB and send to wazirx to convert to fiat without looking at the market.
As a saying goes, eyes don't see, what mind doesn't know. I was falling prey of same. I was having no knowledge of charts and indicators. With the lectures of @stream4u , i have developed basic knowledge of candlestick charts and indicators. Honestly speaking, i made an exchange of steem to fiat a week ago, i earned above 5 fold profit as compared to the first transaction of the same amout of steem done about 4 months ago.
Conclusion.
Money management is very important thing to learn before starting trade in cryptosphere. As for investment in cryptos is concerned, diversification of portfolio to include 4 to 5 assets is a safer practice to avoid losses and to maximise profit as well.
Hi @drqamu
Thank you for joining Steemit Crypto Academy and participated in the Homework Task 7.
Your Homework task 7 verification has been done by @Stream4u, hope you have enjoyed and learned something new in the 7th course.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
https://twitter.com/Qamran7007/status/1374049748391391234?s=20