What to consider when investing

What to consider when investing

In today's blog, I wanted to cover a topic many people need to know about before they go off and try to invest their money. This is because it's not as simple as just putting your money into a stock or crypto and it making your money because this is how most people think it works. But that's actually not how it works matter of fact it's more complicated than that. But that's why I'm here writing this article because I'm going to educate and inform you of how you should properly invest. We will go over everything from how much to invest to trading strategies so make sure you read the whole article to get well informed. With all that being said we can now dive into the article.  

How much to invest

Now there are many ways it goes about answering this question because it all depends on who you are as a person. If You're the type of person who has a lot of savings and has a good job that pays well then you can invest more than someone who has no savings and is working a minimum wage job. Now some experts and people say that a 60/40 strategy is a good ratio to do so keep 60% of your work income in cash and 40% in investments. While others might say an 80/20 strategy is the best because it's the least riskiest. With my circumstances, I personally believe I should be investing with a 20/80 strategy. The reason I do this is one the rising inflation rates in America make it so that it doesn't make sense for me to keep my money in anything that isn't a wealth-generating asset. So I keep 20% of my income in cash and the other 80% in assets mostly all in cryptocurrency.

Trading strategy

Now when you are investing in a market you need to figure out how you're going to invest in it. Now for less volatile assets like commodities such as gold and silver, there isn't much of a strategy except to just HODL it. Now for other assets like crypto or stocks which are more volatile than commodities, there can be multiple strategies. You can just do the simple strategy of just buying and HODLing or you can do either do day or cycle trading. Day trading is the act of trading on a singular day which means you buy the low for the day and sell at the day's high and repeat. Now that's risky especially when you have lots of money in an asset especially if it's a volatile asset like crypto or a risky stock. You can also cycle trade like previously stated which means you sell at the top of a bull cycle and buy and the bottom of a bear cycle. Now, this trading strategy requires less precise timing but also requires you to do more research so that you know when the time is coming to buy or sell. I personally do a mix of all of these strategies.    

Conducting research

If you plan on investing in a market you need to conduct research on it before your start putting your money into that market. This means you need to watch YouTube videos read articles go on websites of the stock or crypto you're going to invest into. Another great research tool to use if you plan on investing in crypto is to just read the white papers of the cryptocurrency you plan on buying. You should also conduct research on the teams behind the crypto and check their credentials to see if they can pull off the promises they are making with their project. Another great tip no matter what market you are in is to conduct research on where the market is heading and where all the big money is going within the market you are trading in. 

What assets to acquire

When you are investing you need to make sure that you are buying the best assets to make you money. Now depending on how much money you have one market might be better than the other market. An example of this is real estate you have to have a lot of money to get into real estate especially in a country like the U.S or the U.K but with the way the market is right now you are sure to make a profit from the rising housing prices
But if you are more of an average joe with an average salary then a market like stocks or crypto might better fit you. I personally believe that crypto would be the best because of the APY rates you can get from staking or lending your cryptos and just the gains you can get from time passing. 

My Final Words     

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