Hi friends, I am here again to take part in the Week-7 homework Task by professor @stream4u

HomeWork Task 7.
Make a Homework Task 7 Post on the below Topics which you can also discuss according to your views on it, and try to explore it as much as possible but in simple terms.

Source

DISCUSSED MONEY MANAGEMENT

Money management is very important as this forms the Liquidity channels by which digital assets are purchased, traded and cashed out too. So, there's every need to get this right from onset. Firstly, knowing that money management is the key importance to a working system that helps you manage risk and as well as maximize profits/ROIs makes it easier for planning.

Money management has helped in placing focus on trading plan since traders needs this to stay longer in the digital market. This is because, trading based on emotions and sentiments will definitely end us loosing invested capitals.

There may not be a specific money management system for everyone as different trader would use tools best for him as it affects doubling is ROI at a shortest possible time. Goals and risk rate may differ, time frame, stop loss mechanism may all seem different but all of this is geared towards same goal.

For anyone to build an effective money management system geared towards a profitable ROI, there are some key tools to take into cognizance;

• Determinating your Risk Level: For every trader, this is very key. Determining your risk loss level should be enforced to avoid been carried away by emotions and head for the woods. No matter how anxious you may want to be to recover lost grounds for the day, as soon as you hit the level of risk set on daily or weekly basis, kindly retire for the day/week. Tomorrow the next week is another better and fresh day to continue on a clean sheet.
  For example, having a maximum risk level of 5% on traded assets (or investment) should be able to guide you, as soon as you get to this level kindly quite and never break the rules so as to maintain your money management system.

• Determining your Trading Goals: This is also another key factor in money management system. Setting a goal here would help and guide you on your risk reward ratio. This risk reward ratio is simply the amount you may want to risk inna bit to get some benefits higher than risk amount. Some experts would always specify their risk reward ratio before venturing into any trade.
  For a example, the may peg their risk amount at $10 in a bit to get a minimum reward of $500.

• Exit Rules: Entering a trade is quite easy but what matters most is the exit. Details on exit rules should be strongly applied so as to reduce unwarranted losses. An effective money management system with strong exit rules would make more net profits than more losses.
  So you need to decide a stop loss and target before you enter a trade. Entering a trade is easy, but setting the exit rules before entering requires some skills and expertise which come with practice.

• Entry Rules: This is another factor considered easy to enter but also tactical to make a good entry. Factors like volume, indicators, S&R level could be considered before going or Entering a trade.

Moreso, for an effective money management, one need to endeavor not to invest all the capital in just one or two coins. There should be two or more coin investment split that will enable the trader withstand beerish periods given that others are bullish. Just like the lessons from professor @steeam4u that postulates dividing this capital into splits and invest them on different coins. This is to make sure that capital is not lost in only one or two coin market.

I also have another strategy of diving the capital into two ratios; 70-30%. The chunk of this capital which is 70% should be invested in a long-term coin (Large capital market, where risks is at it's lowest/minimal level with conservative profits or ROI). 30% of the capital should be traded with in the Mid or Small Capital markets where risk loss is higher but with higher ROI/profits.

This 30% capital should not be traded wholly in just one coin, No... You should split it in this ratio of investing 20% of the 30% capital in give(5) different coins making you alot stable in withstanding losses. A loss in one coin can be recovered from another counterpart coin too.

FUTURE PLAN ON YOUR MONEY MANAGEMENT

This homework had really exposed me to details that I do not ordinarily thought matters. I have always believed in focusing on a coin. I have Continuously wanted to collapse my TRX account but my mentor would always tell me that Tron has a future, why not allow this coin to grow. For now, with this knowledge I won't hesitate to create various investment plans to accommodate more coins.

This investment would be based on the knowledge of planning along the Capital lane which involves the Large, Mid and Small Capital markets. Large Capital is a long term investment plan with little risk losses, Small Capital market has high risk loss level but with also high ROI if well managed. The Mid Capital is an intermediary between the Large and Small Capital market.

DISCUSSED PORTFOLIO MANAGEMENT, IF YOU HAVE AN INVESTMENT AND IF IT IS OKAY WITH YOU THEN SHOW PORTFOLIO AND EXPLORE IT BRIEFLY.

Portfolio in investment is generally seen as a group of assets which may include Fiat, Cryptos, commodities etc which also make up ones watchlist. For me, it is the collection of my digital crypto currencies in my exchange account used for either trading or investment all geared towards profiteering.

Portfolio management, just like the watchlist helps me to over a quick overview in a glance of all my crypto coins, which most cases would aide quick trades and investment.

(My Binanace Exchange portfolio)

From the image I have four (4) assets I have used but not actively in use of them right now except for the Steem which is still powered up in my wallet account. There are three(3) Crypto assets (BTC, STEEM & TRX) and one (1) Fiat asset (NGN) in my portfolio management.
Though there are plans to invest in BNB as I also see future in its coins.

FUTURE PLAN ON YOUR PORTFOLIO MANAGEMENT

There are plans to invest in this preferred crypto plans in the future, but this would be done with due diligence as I need to go through some technical analysis to drive this to a profitable business end. These plans would cut across long term and Mid term investment, not forgetting the small capital investments to drive higher ROIs though considering the risk involved.

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

I am 3 months old in the crypto Industry, hence have not really invested heavily that warranted any form of failure. I have only had loss of assets via loss of my PDF TRON Key when I had issues with my device.

Conclusion

The need for Money management and portfolio management cannot be overemphasized as this are veritable tools needed to drive a focused and profitable business for any investor. Knowing the factors which would guide one in money management before investment is keys so as not to play the emotional game whose resultant effect is loss of assets. This would go further put checks on incessant asset losses by targeting percentage of risk level, risk reward ratio, entry and exit levels at all-times.

Thank you at @stream4u, this is my entry for Homework week7 task.

Cc: @steemcurator01
@steemcurator02

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