You are probably aware of the massive gains and losses that are occurring all around you in the crypto scene, and if you are like me, you want a piece of it!
But, if you are a new investor it can be very easy to make mistakes that cost you a fortune!
So, how can you go about investing without making expensive mistakes? EASY! Learn from the mistakes of others!! I have some rules that I ALWAYS stick to when it comes to investing, no-matter the situation.
Hopefully you can use these and save yourself some costly mistakes.
So, if you are new to investing, these will 100% be useful for you. Feel free to take notes!
Let's get to it.
Commandment #1:
Invest in value, not price. Value leads to the biggest gains. If you truly see long term value in something, the price SHOULD follow.THIS is how you find those undervalued investments that go to the moon almost over night, the ones you see going over 100x and you're kicking yourself saying "FUCK, I WISH I KNEW ABOUT IT WHEN IT WAS JUST 30 CENTS!"
(2)
Commandment #2:
Do not be emotional with your investments..gif)
(3)
Do not let gains or losses control your hand, instead, make a plan, and stick to it!
Create sell/buy points, and set stop losses!
Commandment #3:
Know what you are investing in. Know their mission, know their team, know their operations. Keep tabs on the good and bad press your investments have. Know their competition, and who is doing it better.
Commandment #4:
Keep a HIGH level of market awareness! Know as much as you can that is going on, in relation to your investments.
Commandment #5:
NEVER regret past mistakes! Instead, look back on the past to learn from your mistakes, not to harp on it.
Commandment #6:
Understand how mass acceptance of your investment will affect other areas in the markets. There is a possibility that your investment's success or failure can cause other areas to fail or do well.
Commandment #7
"Buy when there's blood in the streets, even if the blood is your own" -Baron RothschildThe best time to buy is during times of chaos and instability. When the markets take a hard hit, and prices are at their lowest, you should be buying. EVEN if your own investments are doing bad.
Commandment #8
Think up REALISTIC scenarios of how the markets will react to different occurrences.A good example of this is Bitcoin and SegWit. Try and think of every possible outcome that will come with SegWit, and try and predict how this scenario will affect the market.
Commandment #9
Invest in places where others aren't. This is where you will find the best value at the lowest prices.If people are already talking about it, it has probably already made massive gains. But, that doesn't mean it is done making gains.
Commandment #10
HODLHODL
HODL
HODL
There are many people who claim they day trade, and many of them may claim they have made a great amount of profit day trading. I myself have done some day trading and yes, I have made a profit.
Here is the issue: By day trading (buying on pumps and selling during the dips throughout the day), you put yourself at risk of losing portions, or all of your stake. You cannot always predict where the price will end up, so if you sell at a high expecting a dip to follow, the price may never drop below your sell point, so if you buy back your stake, you will be buying back at a loss.
The best strategy for safety purposes is to buy and hold. Hold for a year, and accumulate throughout that period. If the price is where you want it to be after a year, then sell. But in general, holding is almost always the best strategy.
I hope some of these were helpful. I cannot guarantee you that these will save you from ever making a wrong decision, but I can say with confidence that they will prevent many bad moves.
Sometime's we have to learn the hard way, but if we can negate some losses by learning from the advice of others, I would take the advice!
Feel free to leave any comments, I would love to have a discussion.
Also feel free to leave me any advice you might have about investing!
I'm always learning :)
Stay Awesome
-Zey
hey man, thanks for sharing. Investing is always better than spending ;)
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Great Points! Very Interesting Read!
I think #8 is the most profitable advice but also the hardest!!
And as you rightly pointed out yourself, **I think # 10 "Trust Your Gut" is indeed bad advice. **
Because this hits home exactly during times of crises (where your gut would most probably tell you that there must be something to everyone selling) and in times of bubbles (where your gut tells you that you must oversee something, why else would everybody be buying).
Same as with #8 a strong plan & analysis, a set strategy and knowing "why" exactly you think it is a good investment is way better than your gut.
Thank you!
#8 Is definitely something that requires strict discipline and training.
It took me a while to put this rule into effect 100% of the time, I struggled doing it because I always thought it was not the right move, but every single time, buying in the red would have been the better decision.
I suppose this would interfere with #10, because you are right, in times of chaos your gut is telling you to pull out. It has happened to me, which is actually how I've lost a decent stake in some areas. But, there have been times I have had a strong gut feeling that holding would be the best option, and it ended up being a good choice.
For a new investor, #10 is definitely not the best advice, so I will change it.
Thank you for pointing this out; reasons why I enjoy when people leave genuine comments!
Thanks for your reply! You're welcome! Genuine comments for genuine articles ;-) Keep it up!
Yes yes bambi
Yes!
Awesome post voted and re steemed
Thank you, I appreciate it!
Very good post, very good information, thanks for sharing the commandments. I know most of them, but I forget I know them. A reminder is very useful, especially when it comes from someone else.
Great job, and thank you.
Thank you man!
It's always good to have a reminder every now and then.
Nice post bro