Crypto Academy Week 7 Homework Post for [@stream4u]

This week, professor @stream4u shared interesting lessons in the Steemit Cyrpto Academy community with the topic covered "Money Management and Portfolio Management". After reading it, I was interested in making a little review to answer the assignments that professor @stream4u had given in the post.

Money Management and My Future Plan

Source

Money management is the way you use to manage your money as best as possible because you have complete control over each of your money, including when you want to invest or start a future business. In money management and economic principles, we often hear the phrase "as little capital as possible, get as much profit as possible." This sentence is a basic philosophy which means that we can get the maximum possible profit from a very minimum investment. Profits are an investment goal, but there will always be risks. Therefore, good money management is needed.

In investing, you also need to understand the probability of loss to prevent possible losses. Probability is a general term in mathematics, which means chance or probability. Logically, investing in several assets can certainly reduce the probability of loss because this probability has been divided into several assets. However, this probability will be inversely proportional if you only invest in one asset because the probability of loss will be concentrated in one asset only.

Therefore, as a future plan, I will invest in several assets and each asset I will invest with the same investment value. Before investing, I will conduct analysis and research on the assets that I will invest in so that I don't choose the wrong investment assets. After that I will divide the capital in the same amount for each asset.

Portfolio Management and My Future Plan

Source

Portfolio management is an action that you can take after you participate in investing in the assets that you have previously selected. In portfolio management it is also important to remember that you should never invest in just one asset, because that is a high risk and you should invest in 3-5 assets. The purpose of portfolio management is to provide easier access for you to manage your assets and monitor any changes that occur.

Since I plan to invest in several places, it will be difficult for me to keep an eye on it in several places. As a solution, I will create my portfolio on the coinmarketcap website, so that I can monitor everything from one place.

Portfolio management is important and can help you take every investment action at the right time. As a future investment, I plan to buy a number of BitTorrent (BTT), DOGE, HIVE and TRX tokens with a capital of $ 120. That way I will have BTT assets worth $ 30, DOGE $ 30, HIVE $ 30 and TRX $ 30. I chose these assets because I think they are currently experiencing a positive graph and have a good probability of being pumped up in the future.

My Investment Experience

Source

So far, I have never experienced a loss in investing because I have never made a long-term investment. However, I often trade my money to buy a number of cryptocurrencies. Then I exchanged the crypto with another crypto and then I exchanged it again with another crypto that was going up and then I sold it at a higher price. It was done in a short time and I got a small advantage from this process.

Conclusion

To make a good investment, you need to combine money management and portfolio management well. To get as much profit as possible from your invested capital and reduce the probability of loss, you should never invest in just one asset and you should invest in 3-5 assets. Do the research before investment!

CC:
@stream4u
@steemcurator01
@steemcurator02