The Basics of Investments

[MFahad]

Investment choices are a very important thing and have a big influence and after that we have to study the investment that we will make, actually this is not an easy thing from a financial and mental perspective in investing, we will not immediately get profits from the investment that we make, in fact there is a potential for loss if we make the wrong steps or investment choices and the most important thing and must be remembered is that every investment has a risk and the size of the risk will be worth it with the possibility of profit and loss.

Before investing anywhere, you should verify it. This will help us make a good decision. Investment is made based on a risk Which can have benefits as well as disadvantages. We should look around us at successful people who have used their investments well and made profits over time. In investing, we gradually gains benefits. If a person invests thinking that he will get Immediately huge profit from it , then this his misconception. If we invest without planning, we will face losses. And no one wants to waste their investment It is better for us to make decisions wisely  with mental capacity, taking into account our financial situation So that we can succeed.

[2Pizza410000BTC]

You can lose it all, a lot of people don't consider this before starting up an investment, it's all risky and it's possible for you to end up losing everything you invested this is why it's advised for people to always invest what they are capable of losing, no matter how legit or sure you think that investment might be there's a possibility that it might go south at the end. Always learn to think smart and have a plan b

Yes, you are right, most people never think about losing their money, they invest directly without thinking about anything. Maybe after losing money once they make bad comments about investment but they never think that they lost their investment because of their mistake, so everyone should gain investment experience from the beginning and invest as much money as they can afford to lose. Moreover, it is better to avoid blaming yourself and blaming the investment, this keeps the balance of investment and people will not have a wrong idea about investment.

[indah rezqi]

Investment choices are a very important thing and have a big influence and after that we have to study the investment that we will make, actually this is not an easy thing from a financial and mental perspective in investing, we will not immediately get profits from the investment that we make, in fact there is a potential for loss if we make the wrong steps or investment choices and the most important thing and must be remembered is that every investment has a risk and the size of the risk will be worth it with the possibility of profit and loss.

Before investing anywhere, you should verify it. This will help us make a good decision. Investment is made based on a risk Which can have benefits as well as disadvantages. We should look around us at successful people who have used their investments well and made profits over time. In investing, we gradually gains benefits. If a person invests thinking that he will get Immediately huge profit from it , then this his misconception. If we invest without planning, we will face losses. And no one wants to waste their investment It is better for us to make decisions wisely  with mental capacity, taking into account our financial situation So that we can succeed.

I think learning from the experiences and successes of others is one of the most important aspects of investing, as it can save time in learning many things at once. In addition, preparing yourself mentally to face the worst possible risks is also very important because it builds courage. Of course, there is no type of investment without risk, the level of risk will always correspond to the potential return. Indeed, you should never expect instant profits from investing, everything takes time and must go through a process. It is much better to expect profits in the long run.

[Rgram]

I think learning from the experiences and successes of others is one of the most important aspects of investing, as it can save time in learning many things at once.

People learn from fails than they would have with success, not because success isn’t rewarding enough but,having to fail is something you rather not repeat time after time.

When it is about money, you sure don’t want to take same steps to have guaranteed your failure and would rather work out means to not have to fail. The sad path is, it’s easier said than done, especially when the risk of loosing money is invoke.

To be active in the investing space, you need to know that you can lose and learn management as well as risk assessment.

[abhiseshakana]

I think learning from the experiences and successes of others is one of the most important aspects of investing, as it can save time in learning many things at once. In addition, preparing yourself mentally to face the worst possible risks is also very important because it builds courage. Of course, there is no type of investment without risk, the level of risk will always correspond to the potential return. Indeed, you should never expect instant profits from investing, everything takes time and must go through a process. It is much better to expect profits in the long run.

If someone can apply everything you've explained, they fall into the category of investors with a healthy mindset. This includes:
Learning from others (knowledge efficiency),
Readiness to face risks (mental stability),
Realism about the risk-return relationship,
And patience in building long-term results.

I would like to add that discipline without direction is futile, so every investment step must begin with mapping out your personal financial map and then creating a measurable financial plan (financial goals) with a clear timeline and nominal value. So, it's not like following trends or other people's experiences.

Investing requires:
Discipline = engine
Financial plan = direction
Financial goals = destination

All three must work together. Because true investment isn't about who makes the fastest profit, but who is most aware of why they're investing.

[ChocolateBitcoinK]

You see financial education and knowledge of the investment that you are planning of go in is the most important thing, and if you dont have this both their is no way you can be able to succeed in the investment.  In every investment you have to understand the risk and to know the limit you can afford to. Investment is not just having money if you dont understand of how to use money and how to make your money back from your investment,  it becomes a problem to the investment that will end up of being a failed one. Financial understanding is a key to a successful investment.

Just having money is not enough for investing. In addition, an investor needs to know how to use his money, how much risk he can afford, and what his financial limits are.
Without knowing these things, an investor cannot be successful in investing. Financial education allows one to take responsibility for his own decisions, understand what is happening in the market, and control his emotions, which will help him avoid buying at the wrong time, selling at the wrong time, and losing money.
There is a risk involved in investing in assets like Bitcoin. Therefore, when an investor invests beyond his financial capacity, it is not possible for him to maintain the investment. Therefore, having financial understanding is important.

[yslyv]

All these basic principles are totally correct, and every investor should know them. And most of them thinks they know them.
But at the end, maybe less than 1% of those who know them will actually be able to apply or follow them.
Because of human nature, people think these rules are simple and easy to follow, and we don’t take them seriously enough. And in the end, we lose.

[leonair]

Right, You made best thread about Investment and I didn't see that kind of thread in Which OP explained each and everything about that . Knowledge about business matters a lot because there are people who are doing business and they know which kind of things should be for the successful business. There are thousands of people who are doing business but they blindly follow other people. You should read all scenarios about the business in which you are investing. If you will invest more money then you will get reward on your investment and skills which you developed in couple of years .Always do small investment if you have little knowledge because it will give you knowledge.

Practical experience is always very important in business. And the more an individual is involved in business, the more he will be able to track his wrong steps and by correcting them he will be able to become a successful businessman. And that is why he should increase his experience through small investments instead of investing a lot of money in business and then by using that experience he will be able to succeed in his business.

[bubilas]

I'm very susceptible to the mistake of investing everything. Sometimes I feel like I've been pretty unlucky on my gambling evenings, so I gamble huge chunks with my remaining deposit. If it's slots, I'll increase the bet per spin to almost the maximum. If it's roulette, I do the same. This used to be a common mistake of mine. I dreamed of hitting the jackpot this way, but it never happened. And I did the same in trading. Apparently, this is a fundamental mistake of mine. When trading, I'd enter a position with my entire deposit, without diversification. But if I'd been more prudent, I wouldn't have wasted my deposit so quickly. I need to leave money for settling down.

[jems]

All these basic principles are totally correct, and every investor should know them. And most of them thinks they know them.
But at the end, maybe less than 1% of those who know them will actually be able to apply or follow them.
Because of human nature, people think these rules are simple and easy to follow, and we don’t take them seriously enough. And in the end, we lose.

Before starting to invest of course we have all studied the basics but we have to admit that the implementation is difficult, In other words, we already know the theory but it is difficult to put it into practice.
Therefore experience is quite important, both our own experience and the experience of others that we can use as lessons, so I think that for investment we have to keep starting and learning while doing it.

[ASloveapg]

All these basic principles are totally correct, and every investor should know them. And most of them thinks they know them.
But at the end, maybe less than 1% of those who know them will actually be able to apply or follow them.
Because of human nature, people think these rules are simple and easy to follow, and we don’t take them seriously enough. And in the end, we lose.

Before starting to invest of course we have all studied the basics but we have to admit that the implementation is difficult, In other words, we already know the theory but it is difficult to put it into practice.
Therefore experience is quite important, both our own experience and the experience of others that we can use as lessons, so I think that for investment we have to keep starting and learning while doing it.

In fact no one can be a successful investor in the long term without experience, when to change the decision, and when to accept the loss and move forward, these must be decided correctly with mature research. Everything requires real experience, then you can only gain deeper knowledge than the knowledge you can gain by taking ideas from others or reading books, you will only be able to gain deep knowledge through real experience. So don't be afraid, it is important to start without fear, start, and stay focused on the goal, then at some point it is definitely possible to succeed.

[blockman]

I'm very susceptible to the mistake of investing everything. Sometimes I feel like I've been pretty unlucky on my gambling evenings, so I gamble huge chunks with my remaining deposit. If it's slots, I'll increase the bet per spin to almost the maximum. If it's roulette, I do the same. This used to be a common mistake of mine. I dreamed of hitting the jackpot this way, but it never happened. And I did the same in trading. Apparently, this is a fundamental mistake of mine. When trading, I'd enter a position with my entire deposit, without diversification. But if I'd been more prudent, I wouldn't have wasted my deposit so quickly. I need to leave money for settling down.

I think it should be known by everyone that gambling is not investing. There is still a misconception about it, even in my culture, people treat gambling as investing. They are even calling their deposits to a casino as an investment and it should 'grow' upon playing and being lucky given that they win their bets. And I understand why you have said that you're susceptible to this. What you can do to resolve that is by holding your bitcoin, you're already investing. Let it grow in the future and you don't have to do anything while holding it.

[Bluedrem]

I'm very susceptible to the mistake of investing everything. Sometimes I feel like I've been pretty unlucky on my gambling evenings, so I gamble huge chunks with my remaining deposit. If it's slots, I'll increase the bet per spin to almost the maximum. If it's roulette, I do the same. This used to be a common mistake of mine. I dreamed of hitting the jackpot this way, but it never happened. And I did the same in trading. Apparently, this is a fundamental mistake of mine. When trading, I'd enter a position with my entire deposit, without diversification. But if I'd been more prudent, I wouldn't have wasted my deposit so quickly. I need to leave money for settling down.

You may have a tendency to get rich quick. That's why if you see the value of a token or other negotiable item increasing, you pour all your money into it. You may think that by investing a lot of money, even if the price increases by a small amount, you will still get a lot of profit. This is just my opinion because I also had these characteristics. But since I realized that investing is not a way to suddenly get rich quickly, I have changed my strategy. I have divided my investment items into three categories.
1. Low-risk investments
2. Medium-risk investments
3. High-risk investments
I use the majority (2/3) of the money left over after using my earned money to meet my basic needs through low-risk investments, and the remaining part is used in high-risk and medium-risk investments. At the same time, I avoid putting all my days in one basket. From my perspective, I think this is the best for me.

[Jewan420]

The saying "high risk means high reward" does not apply to all cases. Sometimes high risk means high foolishness, where the probability of loss is highest but there is no guarantee of profit. For example, investing in shitcoins. Investing in these coins is very risky, where the probability of loss is highest, but there is no idea of ​​profit. You can also get high profits or normal. There are other things where taking risks is a bit foolish, where the risk can be taken by investing in small amounts.

That is, it proves that we also need knowledge to take risks. We should also have an idea of ​​​​where we are taking risks, how widespread its positive and negative consequences can be, and how it can affect life. Investing does not pay off quickly, but rather it is a self-control.

[eightdots]

The saying "high risk means high reward" does not apply to all cases. Sometimes high risk means high foolishness, where the probability of loss is highest but there is no guarantee of profit. For example, investing in shitcoins. Investing in these coins is very risky, where the probability of loss is highest, but there is no idea of ​​profit. You can also get high profits or normal. There are other things where taking risks is a bit foolish, where the risk can be taken by investing in small amounts.

That is, it proves that we also need knowledge to take risks. We should also have an idea of ​​​​where we are taking risks, how widespread its positive and negative consequences can be, and how it can affect life. Investing does not pay off quickly, but rather it is a self-control.

Taking risks requires knowledge. Taking risks without knowledge often leads to failure to achieve desired results. Risk is a constant concept in investing, and the degree of risk determines the investment amount. Everyone's perspective on risk may differ, but fundamentally, understanding risk and acting accordingly is crucial.

Knowledge allows us to make better decisions in many areas. There are informed and risk-taking investors, but their moves don't always pay off, but they know to keep the risk at a certain level. As I mentioned earlier, everyone's risk tolerance is different, and the investment amount is the most important factor in determining risk.

[Fara Chan]

Before starting to invest of course we have all studied the basics but we have to admit that the implementation is difficult, In other words, we already know the theory but it is difficult to put it into practice.
Therefore experience is quite important, both our own experience and the experience of others that we can use as lessons, so I think that for investment we have to keep starting and learning while doing it.

Investing is a very simple thing to understand and can also be very easy to implement if the duration is short. What makes investing seem difficult is the level of consistency in implementing it over the long term. Therefore, it needs to be explored properly, such as preparing specific funds and having a clear cash flow so that we can continue investing regularly in something we already like and believe will do well in the future. Because everything must be seen simply so that we are willing to start without thinking about specific reasons.

[RockBell]

Yes, you are right, most people never think about losing their money, they invest directly without thinking about anything. Maybe after losing money once they make bad comments about investment but they never think that they lost their investment because of their mistake, so everyone should gain investment experience from the beginning and invest as much money as they can afford to lose. Moreover, it is better to avoid blaming yourself and blaming the investment, this keeps the balance of investment and people will not have a wrong idea about investment.

People should know that when it comes to investing in bitcoin, anyone should understand that thr price might come down but it will still recover. Except if you are trading, that is when your money will be on total lose and its all part of the process and you losing money is nothing to worry about and this is why experience is good because when you are consistently doing it, then it will come to a point that you won't worry about the price any longer, because when you don't win then you try harder.

Because when you dealing with bitcoin, you just have to invest what you can lose because that way it will be less worrisome because it's an amount you can afford to lose,  and even blaming your self will not help at all so the best thing is to take responsibility and move on so you just have to be sure of what your mistake is to learn from instead of blaming your self. And I feel is people that don't have knowledge are the ones that are scared of losing money so I feel they should do better.

[slapper]

I think learning from the experiences and successes of others is one of the most important aspects of investing, as it can save time in learning many things at once. In addition, preparing yourself mentally to face the worst possible risks is also very important because it builds courage. Of course, there is no type of investment without risk, the level of risk will always correspond to the potential return. Indeed, you should never expect instant profits from investing, everything takes time and must go through a process. It is much better to expect profits in the long run.

If someone can apply everything you've explained, they fall into the category of investors with a healthy mindset. This includes:
Learning from others (knowledge efficiency),
Readiness to face risks (mental stability),
Realism about the risk-return relationship,
And patience in building long-term results.

I would like to add that discipline without direction is futile, so every investment step must begin with mapping out your personal financial map and then creating a measurable financial plan (financial goals) with a clear timeline and nominal value. So, it's not like following trends or other people's experiences.

Investing requires:
Discipline = engine
Financial plan = direction
Financial goals = destination

All three must work together. Because true investment isn't about who makes the fastest profit, but who is most aware of why they're investing.

Your healthy investor psyche is good, virtually textbook. Plans are great, as plans are control, and markets are mad because they do not listen to your schedule or nominal values. It is a strange satisfaction to work with spreadsheets, but the actual work lies in living with ambiguity and recalibrating once your direction is swamped by reality

Discipline, plan, goals, sure, but the more important question is; whose goals? Far too frequently, the personal financial map is simply a variation on what society thinks successful should be. Are you investing to free, be validated, secured, or to do the same thing that everybody is doing? Majority of people are not aware and this is the reason why they follow trends. The most difficult thing is not following a plan. It is having radical honesty about why it was so, and is willing to redefine them when you transform

Investment is less about the rate of profit, more about the self-consciousness in the face of uncertainty. The rest is just tactics

[Findingnemo]

I just want to add, investment is a marathon not a sprint. People who want to invest expect their asset to grow from the next day which results into panic if the price drops. They should be prepared to play the long game and to be honest traditional investment took a couple generation to get the expected returns so if someone consider 4 year cycle is too long for them to HODL then they might tot fit to become an investor at all.

[ndutndut]

Before starting to invest of course we have all studied the basics but we have to admit that the implementation is difficult, In other words, we already know the theory but it is difficult to put it into practice.
Therefore experience is quite important, both our own experience and the experience of others that we can use as lessons, so I think that for investment we have to keep starting and learning while doing it.

Investing is a very simple thing to understand and can also be very easy to implement if the duration is short. What makes investing seem difficult is the level of consistency in implementing it over the long term. Therefore, it needs to be explored properly, such as preparing specific funds and having a clear cash flow so that we can continue investing regularly in something we already like and believe will do well in the future. Because everything must be seen simply so that we are willing to start without thinking about specific reasons.

Your mindset is also correct. Don't assume investing is difficult as it'll be easy to start without overthinking it. Essentially if we continue to learn and practice it well investing/trading will be more effective.

However the opposite is also true. When people consider trading/investing a simple activity, they often underestimate it ultimately leading to losses. Trading in theory seems easy but when put into practice it's difficult. So it really depends on each trader's individual character when it comes to applying investment basics. Because not all traders have the same abilities some learn it easily while others learn it slowly.