It’s not whether you’re right or wrong that’s important.
"It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” — George Soros
You may be right or wrong but is it important? What is more important, is it the amount of money you will lose or the amount of profit you will make? These are the very vital question we have been missing every time we hit a dead-end in any investment plan. Trust me, you should take a minute to truly seek the answers to those questions. Getting the answers to those questions will determine how you will be able to make proper decisions on any investment plan. Yes, we are in the crypto space which has shown great volatility to both newbies and old hands alike. The truth is that most of us may have lost because we did not answer these questions before venturing into any project.
The answers to these two questions will;
Determine the amount you will invest in any business.
Determine when you can take profit.
Guide you on how to maximise your loss.
Guide you on the right project or business to invest in.
Lastly, no matter the turnout of the business or project, you will never be a complete loser.
Let us look at these points just in case you need more elaboration to understand what I am talking about. Don't forget that I have decided to always bring us the great motivation that will guide us in the things we do, all I demand from you is your undivided attention and readiness to practise whatever you have learnt from my posts.
It will help you to determine the amount you will invest in any business.
Now, this is the very reason why you have not been investing rightly when it comes to amount and timing. A good investor is someone who spends time crossing his T's and dotting his I's before setting out to invest. How do you cross your T's and dot your I's when you have not asked the very most important question that will guide you on the right path. Look at yourself in the mirror and ask yourself this question.
Which is important; Is it the amount you will lose or the amount you will make if you invest in a project or business? This is the most important question that opens up every other thing you will need to know before investing in any business. A lot of people jump into an investment because they heard that it will generate 10 times their investment capital within a short period. This happens when we focus on the profit we will make in an investment. The problem is that when we focus on the profit, we will be beclouded by it and by so doing, we won't carry out necessary research about such investment.
This is why we must find a balance between the amount of profit and loss we can take in an investment. Mind you, not knowing this in business investment kills more than death itself.
Determine when you can take profit.
The first point leads us to this second point because when you can determine how much you are willing to lose or the profit you would want to take, you will not be taken unawares because of greed. This is a known fact because most of us must have tasted the painful sting of Greed in investment. Since we have not determined the amount of profit it loses we can take from a business, we end up not knowing when to take profit even when it has given us more than 2 times our investment capital. This has killed a lot of investors especially those within the crypto sphere. Don't let greed get the better part of your investment.
It guides you on the right project or business to invest in.
From points one and two, you can determine the right project or business to invest in. This is a clear fact that you must understand. There are no two ways about it. By the time you answer the necessary question, you will see that decision making will not be an issue for you. Indecisiveness is one of the killers of investors.
Don't take this for granted because it is all you will need to survive as an investor. I believe I have been able to break this down in a very simple way for anyone who wishes to understand it. We can not keep making the same mistake and expect to see the same result in life.
