Tricks To be Defensive while Investing in Cryptocurrencies4th June 2018
Investing in stocks and cryptocurrencies has become very risky task as compared to 90’s because of increase in speculation and competition especially in crypto’s , One should take care certain points while investing in crypto and stocks to play safe.
1.Use your knowledge
Being knowledgeable is very important while investing a person who lacks knowledge is described as speculator.
“When you leave it to chance , then all of the sudden you don’t have any more luck ” – Pat Riley
Investing is an art comprising of analysing ,expertise and patience.
This simple method is very difficult one if you lack patience and self control , practice self control will help you to achieve you goals in a very effective way , everyday you came up with new ideas but the problem is you cant interpret them and this our initial step towards success .
Don’t follow this old and sound principles that is you can’t afford risk you are not able to yeild high returns, instead there is more chances of loss we have to strategically invest this is our motive , rate of return should be dependent , rather on the amount of intelligent effort the investor is willing and able to bear on his task.
Choose common stock instead of choosing preferred stock as common stock has higher potential of growth other stocks such as blue chip stocks means huge business stocks pay in steadier while you can also invest but rate is high, comparing income stocks which yeild fixed dividends payments and common stocks we prefer common stocks for high profits and being defensive our suggeation is to invest in income stocks.
A good way to stay secure and securing maximum benefits from investing is passiveness. Maximum returns will be yeild if alertness and maximum intelligence used .
In several years best long-term bonds loosed a substantial part of their market value because of the rise in interest rates so the conclusion is investor should divide his funds between high-grade bonds and high-grade common stocks.
Never less than 30% and more than 70% of his funds into common stocks
and inverse range in bonds
One of the Most successful investors in history Benjimin Graham says there are only two ways to invest one is by continually expanding curiosity and researching,exploring monitoring dynamic stock ,bonds or mutual funds or by creating a permanent folio that runs an autopilot and requires no further effort. It takes time or effort but requires almost detachment from the alluring hullabaloo from market.
Researching is very fecund when fertet monitoring market is easy there should be a fixation to a particular stock or bond to play an active approach being successful.
4. Margin of safety
Remember market always fluctuate and it swings like a pendulum from low price to high price because of demand and supply, when there is decrease in price we have to invest and when there is demand sell it to an optimist.
A stock is when Purchased A Point should be remembered stock should be purchased the future of it is depend on current price , higher the price you pay today less you would get tomorrow.
The secret of success in investing is you self-control on yourselves more you control to buy stocks from overpaying no matter good is best in market , it is matter of critical thinking how much you payed income depends on it and market is no ones instead it is a pendulum .
This concept is known as value investing always invest with ‘margin of safety’ not above than that be financially frugal .
5.Don’t invest in ICO’s
ICO’s can be very profitable if their is genuine crowdfunding for a better work. People generally run crowdfunding for their benefit and in turn they will get lost. Entrepreneurs claim for a great project or idea and collect funds to complete but of they are not able to complete their promises in turn they have to return money to public as per smart contract policy by ethereum,in some cases they fraud people.
There are more than 100k users on etherscan.io who are waiting for an investment or fraud.