Steemit Crypto Academy | Homework Task 7 For @stream4u; Money Management, Future plan ; Portfolio Management .
Today i am writing homework task of week 7 . It is about money and portfolio management. This task is for @stream4u. i will try to explain it in simple language.
Discussed Money Management.
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Money management is a process of auditing one's money. The components involved in auditing are , looking at one's budget, on the basis of budget, determining the amount to be invested, calculating the profit accrued out of the investment, deductiing the expenditure and than calculating the savings.
Money management is very important , because if you do it properly than you are going to be financially stable and if it is not properly done you are going to land into debit and thereby spoiling your well being.
Nowadays money management has become very easy, if you are not capable of doing it yourself, you can get financial advisors and applications that will better help you in managing your assets. Better money management helps you determine where to invest, when to invest and how much to invest. So that you can maximize your ptofit and minimise your losses.
Future plan on your Money Management.
Ever since I joined steemit platform, I got introduced to blockchain and cryptocurrency. I have developed keen interest in cryptocurrency . Since I am student yet, I am not working, so I don't have enough funds to invest as of now, but I am very passionate to invest in cryptocurrency in near future. I would love to have investment in multiple cryptocurrencies.
Discussed Portfolio Management, if you have an investment and if it is okay with you then show portfolio and explore it briefly.
Portfolio management is an science which enables
an individual to read the market and make Investments into the assets, that are expected to yield profit and minimize loss.
There are two types of portfolio management:
Active management.
Passive management.
Passive management refers to an act in which you invest in an asset or cryptocurrency and you are planning to hold it for a long time. So you do not need actively manage it.
Active management involves investment into an asset and than actively tracking the asset and keep buying or selling it as per the market demand.
Future plan on your Portfolio Management.
My future plan in portfolio management would focus on following points:
- Asset allocation and diversification.
It is a proven fact that all cryptocurrencies are stocks do not move at a uniform pace l. To simplify, we can say that , all assets do not show similar bullish and bearish trends in the market . Any particular asset may be e bullish at any time while others may be bearish and vice versa l. So a good portfolio management in my future would focus on investing on mixture of assets
which would ensure that, at any particular point of time I may not be rendered bankrupt because of bullish market trends.
- Action portfolios management
I would be practicing active portfolio management because I got more interested in this. I would love to track assets on day to day basis and accrue more benefit out of the market trends.
When was the last investment failed and Why? (those who have experienced this can provide views.)
I am a student and I have not made any Investments into any asset. Although I have got Fiat paid by my cousin who brought me to the steemit platform. I transferred him steem and he gave me offline Fiat. At that time, I was not attending the crypto Academy lectures, so didn't know , what he paid but i am sure that he would have paid me exact amount.
Conclusion.
Money management is an important part of life for traders and investors . The better they can handle this aspect of their life , more happy they are going to remain as they are able to gain more benefit from the market. In case of crypto trading, portfolio management is important perspective to succeed in crypto market.
Hi @magmuz
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
@stream4u - this post is using a copyright iStock image.
The watermark on the image means it is not copyright free.
Oh yes, it seems I only focus on the source and not closely look at the image. I will take care of it in a future reviews.