Money Management.
Money management is the process of dividing your total capital into different part so that you can invest them differently I.e not gathering your entire eggs in one basket. Note also, Money Management is the proper allocation of resources into other investments at the right time at the right place to avoid unnecessary loses. With these in mind, it's wise to know when and how to invest your money. Furthermore, I must sincerely say that within these few weeks I have learnt a whole lot from our professors and I have learnt technical knowledge on when to buy or sell crypto.
plan on your Money Management
Before this time, I have no idea at all as to how I can manage or plan my money effective in the crypto world and beyond. So you will agree with me that I have not put in proper measure to ensure I secure my money. Today I have learnt that I need to divide my resource into the latest 4 parts. So that I can invest them in small, mid-term and long-term trading respectively. I want to believe that after today I will not have any course to regret, by saying I have lost my resources completely. In addition to securing my resources, I have provided a watchlist for myself to enable me to monitor a few of the coins I have selected and wish to invest in until an opportunity surfaces for me to either buy or sell them to maximise my profit.
Discussed Portfolio Management, if you have an investment and if it is okay with you then show portfolio and explore it briefly.
Before this time I have recently discussed money management and I said it's not always advisable for one to focus only on a particular coins I.e for one to invest only in particular crypto. Portfolio management is managing assets in the investment portfolio to maximise the returns in the investment. Now where the toughest decision lies is knowing the portion of your capital to invest in a different asset as many risks is also associated with it. Which of the assets will you invest more and which will you invest Little. I will be showing my investment in an exchange below.
From the image above, I diversify my investment into different cryptocurrency. These investment decisions are based on the technical and fundamental analysis carried out carefully on the projects. Similarly, the majority of the cryptocurrency I invested in is the medium capital (DOGE, TRX, USDT) which still have great potential to increase their market capitalization in the future as the projects are still at the development stage. Truth is said, my investment will take a longer time to fetch me much profit but am still certain that I made these investments with the risk in mind. Here in this investment, I considered Risk Capital in my investment. And if you carefully look at it you will know that I didn't invest much in it because I have not gotten full knowledge of money management but after this lecture,
plan on your Portfolio Management.
The portfolio above has shown that my investment plan is a very poor one as I didn't bother to consider capitalization I.e the small-cap, medium cap and large-cap marketing procedure. But after this lecture, My plans on portfolio management are to fully understand the basics of the projects I’m investing in. Furthermore, from the knowledge I have gotten from this lecture, I will be able to divide my capital into the latest 4 parts and invest them as required. I hconcludedsion that good money management and portfolio management will help you to secure your resources.