Hi professor @stream4u,

I am here to complete homework post 7 on money management and portfolio management.

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What is money?

Money is a currency medium of exchange which we use in the exchange of goods as payment for a commodity bought.
A commodity being gold, cocoa, food, and many more.

A currency in simple terms is money.

Money management

Money management in a lay man’s term means to know how to save you money, how to invest your money, and how to make profit with your money.

In crypto trading, money management is a financial plan an investor sorts for, which helps an investor determine how he or she is going to invest in various crypto currency.

For instance, when someone wants to invest in a particular currency, he has to know if the currency is a large cap, medium cap, or small cap crypto currency.

The investor is able to know all this through proper money management skills to be able to make maximum profit. This prevents the investor from misusing his money to buy non profitable crypto.

My Future Plan On Money Management.

Investing in Crypto currencies has always been a priority for me.

I would have preferred investing in small cap currencies e.g. Venus, but since investing in small cap currencies come with a high risk and I don’t want to mismanage my money.

So I will prefer investing in the large cap currency e.g. btc, which carry a very small risk as compared to the small cap currency.
Even though investing in the large cap currency will not yield maximum profit in a small period, and because of limited funds. But it will help me in managing my funds so I don’t run at a loss and end up losing my money.

Portfolio management

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Portfolio is the collection of everything one has invested in. e.g. stocks.

Portfolio management is the ability of selecting and supervising your investments to meet a long term goal.
Before a trader builds his or her portfolio, the trader considers the risk tolerance and trading style.

Portfolio management come in different folds.

This may involve buying leading assets and selling them.

Another form of portfolio management involves just investing in a particular asset or number of assets and forgetting about it. This is referred to as indexing.

As you can see from my portfolio its obvious i just started to invest in eth, and i hope to buy more eth

My future Plan on Portfolio Management

I plan on making maximum profit by investing in the small cap crypto.

I will like to add steem to my portfolio.

Looking at steem, even though it’s a small cap crypto which means investing in it will be a high risk.
But looking at how steem rises it will be a good idea to invest in steem.

Failed investment

One investment I will consider a failed investment is ‘loom’.

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this is a chart showing how money was circulated among investors

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This was an investment plan where people in a group contribute an allocated amount and one person takes everything.
The following week another person too collects the contributed, this goes round the whole group.

But the disadvantage that was associated with this kind of plan was whoever joined the group last was supposed to introduce more people so that they will be under his belt before that individual will be able to earn.

So the people under his belt were the people who will be able to earn him or her the money. Those above him could not earn him money but rather you will earn them money.

And this kind of group could not function without those who were above you.

Unfortunately, I was introduced into this by a friend who was also looking for people to put under his belt. The time I joined it was the time people at the higher level started to leave which made more people not to believe in it, so many people considered as scam.

Conclusion

Deciding on money management and actually following through with your plans is not an easy task, but a serious investor should be able to take his time and plan well before engaging in any risk involving activity. Money management should be an important attribute to every serious investor.

Thank you