What Did You Learn In 2022 That Helps To Improve Your Finances?

Happy New Year! This is the first day of 2023. We are here, a new year, a new day to explore, learn, take action, and move forward. A lot of things happened in 2022. You had to see something that you did not expect. You thought something, but something else happened.

What you learned and experienced in 2022 can help to improve your finances. Let's look back for a moment.

Always Have A Plan To Execute

You face different things in life. Sometimes you see something that is unexpected. You make more money from a particular investment that you did not think of before. Sometimes the opposite happens. When you don't have a plan, you may be confused about what to do.

A plan helps you navigate the situation in a better way and you can do what you are supposed to do at that time without getting overwhelmed by FUD and FOMO.

Hope Is Not A Strategy

What did you think at the beginning of 2022? Did Bitcoin hit an all-time high? People were talking about Bitcoin would hit 100K. It did not happen in 2021, so probably you thought BTC would hit an all-time in 2022.

You can always hope for the best. But when you invest in crypto, you have to execute your plan. If you just sit there and hope, hope is not going to help you stop losing money. If BTC hit 100K, you could make a lot of money. But doing nothing and holding crypto that you did not plan to hold for the long term is not a good idea when the market moves in the opposite direction.

Take Profits Seriously In A Bull Market

You see the price goes up all the way and the price crashes and falls down. If you do not take a profit, you just miss the opportunity. Selling and taking a profit is a good thing.

I think it is better to sell a significant portion of holding and book your profit in a bull market even if you only plan to hold for the long term. Why? Bitcoin price is around 16K right now. You can make more to grow your crypto portfolio faster.

Don't Pay Attention To What Others Think Of You

Sometimes we do something or don't do something only because we pay too much attention to what other people think of us. People are talking about diamond hand, you want to show you are holding tight and don't sell even when you should sell and exit your position.

That can hurt you financially. Looking at your crypto portfolio, you can feel it that reminds you of what you should have done at that time.

Manage Your Risk

If you are in crypto, make investments, or do trading, risk management is one of the most important things. You can make a lot of money in crypto during a bull run, but you can lose everything and give it back to the market if you don't take risk management seriously.

Stop loss makes you sad because you lose little money every time you bump into stop loss. Now you feel different and you become a fan of stop loss. You realize how important it is to save your capital. And as long as you manage your risk, it helps you survive and thrive in the crypto market.

So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.

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