If you have ever looked for financial freedom, you might already be aware of investments, crypto currencies and trading.
However, if you want to invest "without selling your soul", this post is for you.
A lot has been written for the topic, but I found most of it junk (no offense). At least 90% people are copying what they read on other places and sharing mindlessly. And following such advice only harms a new investor. You can get lost in thousands of so-called strategies to never really make a profit.
Here today, I am sharing the top 3 secrets of investments with an intention to help you become a profitable investor. Also, I don't like trading and this post is strictly NOT for traders.
Investment vs Trading
I have tried day trading and quick-flips in the past, but over the time, I have seen it time-consuming and blood-sucking to keep staring at your screen and waiting for miracles. So far, I found it a mindless dopamine-manipulation that is not good mentally, physically and spiritually. So if you want to do trading, go ahead. But this post is not about it.
Long-term investments have a very important factor that works in our favor. It keeps investors separate from traders and riches different from poor. And it is TIME.
By the way, important disclaimer here. This is NOT advice to invest in crypto currencies, stocks or whatever. I am sharing my opinions and it is up to you to listen or to not listen. Your decisions are your responsibility.
Legendary investor, Warren buffet has once mentioned "Stock market is a device to transfer money from impatient to patients". So far, I found it true in every investment, including crypto currencies.
-Warren "real" Buffet
"Stock market is a device to transfer money from impatient to patients"
However, this wisdom is not complete without understanding the 3 secrets of investments.
So let me reveal them for you, step by step.
Secret #01: The Principle of Entry Point
This is tricky, and it might look stupid when you hear it for the first time, but in the end, it makes all the difference.
Here is an example to understand the Entry Point:
Let's say, you have $1000 to invest and the unit of investment (stocks in general or token in crypto) is $1 today. That means you will get 1000 tokens for your investment.
In one year, if the unit reaches $5, you will make $5000 on your investment.
Now let's say, someone got an entry at $1.5/unit which is just $0.5 above you. However, for $1000 investment, he is only getting 666 units initially.
It might not make a big difference to begin with, but to earn the same level of profit, this person will have to wait until the price reaches $5000/666, which is $7.5.
At this point, you would be enjoying $7500 ideally, which is $6500 more than your initial investment.
So, yes! Your Entry point does matter.
Here should be your takeaway: If you have found the gem before the world finds it, better go for it. It would be more risky for some, but this is where most successful investors play.
You can look at company profile, team members, communities and early backers to qualify a project for early support.
Secret #02: Get your initial investments before it's too late
"No one gets bankrupt by taking initials back", one of the best advice I have ever received is here.
Let's face this! Most of the initial decisions for a retail investor (normal person) are blind bets. That means you might have been doing your research, but you can never have the full picture of the future. Also, there is always an intangible "risk factor" involved with every investment.
This is why don't wait too much before taking out your initial purchase. When the market is green, it's easy to get greedy and stay invested.
This is the problem with money. It's possessive. And too much greed is always dangerous.
If you are not taking your initial investments out, you are still in loss. So you need to make sure you are taking investments as soon as you are in profit. When? if you ask, it's completely up to you. Some people take initials back at 2x and some wait till 5x. I think 2-3x should be good to begin with.
Secret #03: Never Sell it All
Imagine buying Amazon stocks in early 2005 at $39 (check secret #01). Even if you could have saved 5 stocks from that time, it would be worth well over $15000 today as I am writing this article.
So never sell it all. Once you are in profit, take out some profit and leave the rest. Forget it. Don't talk about it (but don't forget your credentials... lol).
This way, when the market will fluctuate, you will flow... However, if you have entered early, you have got your initials out; you are in profit, you will never have to sell your soul.
You can sleep at night and do what you want, unlike others who are still staring at their screens.
I shared the unsexy system for profitable digital investment, but I can almost say it works. "almost", because there was a disclaimer above and I don't want to lie about it. If you are investing recklessly, panicking too much and can't control your evil urges to sell too early or/and get too greedy, it won't work.
However, as Buffett said, the market is a device to transfer money from impatient to patient. In every trade, there is someone who loses and someone who wins. It depends on who you become .
Let me know what do you think about it.