Homework Task 7: Money Management & Portfolio Management | lesson by @stream4u
Hello, everyone. I hope you are doing great today. I've learned again from professor @stream4u of the crypto academy, the lecture was a great one and I will be solving the task given at the end of the lecture.
What is Money Management
Money management in cryptocurrency is the process by which an investor's or trader's total capital is divided into parts to effectively manage the resources at the hand in acquisition of assets.
As I've said earlier, money management involves segmenting your total capital into parts that could be 2/3/4 parts so as to make use of it to invest or buy an asset based on divided parts. It is important to know that after a successful segmenting of the total capital, proper analysis like the technical and the fundamentals is required before acquiring any crypto asset.
Advantages of Money Management
- It pave way for good portfolio management.
- It reduces loss that could be experienced when a trader put all his/her capital in one asset, as assets acquired using money management are bought with part of the capital and not total capital.
- It helps a trader or investor to dive into various assets and that would enhance profitability than keeping his/her total capital in just one asset.
- It reduces the downtime as traders or investors don't have to wait too long for an asset to come with good profit, as seen in the case of putting the total capital in a single trade.
My Future plan on Money Management
My future plan on money management has been enhanced with the professor's lecture as I look forward to dividing my capital into 2/3/4 parts but preferably 3-4 parts so that I can easily manage my total capital to acquire desired cryptos and also be safe as the failure in one asset won't tie me down for too long. I'm still very new in crypto trading so I plan to put in $200 sooner and divide it into 4 parts. Once I carry out my analysis on assets and all has been certain then I will place entry with $50 parts and repeatedly for other assets too.
What is Portfolio Management
Portfolio management is the list of the assets I have in my crypto wallet. Portfolio contains the assets I've acquired over time and good portfolio management can be practiced by following the money management rules having the total capital segmented into parts and buy assets in capital parts to maintain a safe trade and a good portfolio management.
My Portfolio
The screenshot above shows the only asset I have in my wallet which is TRX and a fragment of USDT that was left over during my purchase of the TRX. My fundamental analysis reveals that TRX is having better days ahead of it and I choose to buy it. I am still buying as I look forward to add more to it sooner.
My Future plan on Portfolio Management
My plan for the future as regards portfolio management is to first practice money management by dividing my total capital into 3-4 parts, carry out my technical and fundamental analysis on different cryptos and once I am sure of a buy position then I will buy with a part and repeat the process for other crypto assets. Having this put in place, I will be maintaining a very good portfolio management.
Failed Investment experience
I have no failed investment yet as I am still very new in the crypto world. I've just acquired an asset so far which is TRX and I don't have any regrets about that yet. With the professor's lecture, I know I'd be making good decisions as regards investment.
Conclusion
Money management is a very important tool to employ in preparation for acquisition of of assets as it pave way for a good portfolio management which comes with profitable decisions after all requirements technically and fundamentally are being met and also reduces the time of waiting for a single asset when all capital was put into just one asset. I'm forever grateful to professor @stream4u for his great lecture and I hope to see more as time goes on. Thank you professor.
Regards; Cc: @steemcurator01 , Cc: @steemcurator02 , Cc: @steemitblog , Cc: @stream4u
Hi @temitopef
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
Thank you so much professor @stream4u. Your lecture is always on point and well explained. I look forward to learn more from you sir. Thanks