Steemit Crypto Academy | Course 7 By @stream4u | Money Management & Portfolio Management.

Also called money management or monetary management, it affects the results we can have when trading, depending on how we manage our assets, our profits or losses will depend. If we are beginners in this world of cryptocurrencies, a very common hazing is to act without thinking. We fail to invest all or most of our money in a strategy or cryptocurrency that we have only tried once or of which we only have superficial information.

Final result: We lose all our money without getting any profit apart.

The best thing to do is to keep in mind the exact amount of money we want to invest. And with that in mind select the amount we are willing to lose. Yes, lose. There is always, whatever strategy we use, the possibility of losing that investment we make. It sounds a little negative, but it is better to be safe than to cry over our Wallet or empty account.

We will know this through the type of money management we use, based on mathematical formulas and algorithms that provide a strategy to know what amount of money and at what time to position it commercially in the digital market to obtain favorable results.

Future plan on your Money Management

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This point refers to how we will manage our money in the future. What plan to use? What strategy to employ? Something important is not to invest all our money without leaving some backup. We should take a portion of our capital, that which we are willing to lose if something goes wrong and that we can easily recover with time or other strategies. That same portion, we could divide it into 3 parts or 3 different investments. For example, investing in those cryptocurrencies that we believe will benefit us.

In this way we have more options to win, than only having invested in a single cryptocurrency and that depends on it all our investment or money.

There is an implicit rule among traders that is not to risk more than 2% of our account, this protects us from losing all our capital and if we have operations that in the end will only cause us losses, then we will only have lost a small part of our money that we can easily recover.

Future plan on your Portfolio Management.

It is always good to think about how we will act in the future, at the moment I feel ready to start my investment I know that I must take into account not to invest 100% of my capital, trying to take only a portion of it. As well as keeping track of the cryptocurrencies in which I want to invest in order to know at what point I should position my investment. Another important fact is to bet on 3 or 4 cryptocurrencies in my investment, in this way if one operation generates losses I would not lose all my invested money, but I would have other operations that could give good results.

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

As I said before, I am still learning about this world. However, I have been able to talk to some friends who have gone through this process and in many occasions have lost all their capital for not having all the necessary information and for not backing themselves up with a strategy or monetary technique. They have told me how frustrating it is to lose all the capital they had and start from scratch, in a way the failure in these investments made them more cautious in managing their money and warn beginners like me that before acting, we must analyze.

Conclusion

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From this reading and my own research, I was able to learn and know that there are strategies to invest without high risks of losing all my money. Knowing that one of the best options is to divide the capital we have in an amount that, if lost in any operation, is easy to recover later and thus avoid being at 0. I also learned that it is best to invest in several currencies, rather than one, thus having more opportunities to generate other results depending on the strategy we use.

Thanks to Professor @stream4u for this reading, in which he reinforces how cautious we should be when investing. If we are impulsive and do not do our own monetary analysis, we will be doomed to fail and lose our capital.

Cc:
@steemitblog
@steemcurator01
@steemcurator02
@stream4u