Tips on how to protect your portfolio || 10% payout to tron-fan-club

in hive-183397 •  2 months ago 

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I've heard stories of how people blew up their account in no time. Some blew up their account almost immediately they started their trading activities. It's quite pathetic. One of the reason for this is that many of this people didn't follow certian golden rules which would have shielded them from that mess. Nevertheless,it is still part of the learning process,but somethings can really be avoided.

Learning from your mistake is not really the best kind of learning,you might want to argue this but the truth is there are some same mistake you make that causes eternal damage while some other gives you the opportunity to try again. If you're given the opportunity to try again then you're lucky but if not.... So learning form other mistakes is key.
Let's explore below some tips on how to protect your portfolio.

Always do independent research. Don't always believe the "expert"

We are sincerely grateful for the good contents and updates experienced folks out there put up from time to time to help crypto traders and enthusiasts with their trading activities but caution need to be taken, you don't have to always believe these people hook line and sinker if you don't want to be caught up in a snare. Although they tell you it's not a financial advice but the truth is they tend to create fact that touches your reasoning faculty which propels action. If you must guide against an unguided action which could jeopardize things then you need to do your independent research.

Emotions should be checked and subjected.

Your emotions should be checked at all times. Don't forget we are dealing with money here,it takes just few seconds to blow up your entire portfolio. It also takes a few seconds to make a decision that will change the ball game totally. I've seen those that sold off due to panic and the next instance there was a big movement in the market that resulted into huge profit. The deed has been done,you can't cry over spilt milk but you can always prevent the milk from spilling. Always put your emotion in check to avoid loss,don't just join any train because people are joining (FOMO). Look before leaping.

Portfolio Diversification

Your portfolio will be better off when you diversify it. In diversifying it,you're only playing safe. It is usually not wise to put all your eggs in one basket. If you are buying an asset,you have to buy with a fraction of the fund at your disposal,you don't use all. You will have to either buy different asset to guide against this risk. It's safer that way,so when one crashes due to unforeseen circumstances,the others will help cover up for the loss. All your asset will definitely not be failing at the same time,if you're a good trade.

Don't overlook Risk management**

Risk management is key and it is one of the important subject an investor or trader must consider. A trader should be able to know and calculate how much he is willing to risk. He should be able to set a target of how much he wants as profit in whatever trade he want to take. Stop loss and take profit are important key factor here. You don't just trade without stop loss,the reason why you have to put it is to protect your portfolio,should in case the market turns against you. A reasonable profit ratio should also be set so that you don't get caught up in greed and then end up in loss.

Have an investment Goal

People with a very good investment goals tend to be more stable than those without goals. A goal is a well outlined plan that helps you pursue a desired objective. This goal can be broken into bits so that it will be easy to follow. You could map out how the level of profit you would like to take for a particular period,you could come up with the level of loss you can allow for a period of time,your entry and exit strategies etc. This is to shield you against unnecessary emotional imbalance because you have a script you're following. Many who doesn't have loss limit,might take a trade again and again even after suffering loss. They get even deeper thinking they will recover what was lost not knowing that their emotion already have a better part of them just like a man gambling in a hope to recover what he has lost to his opponent. There should be clear plan which is not based on emotional sentiment.

Final Thought

Protecting your portfolio should be of utmost importance,you could be out of the market just as soon as you enter if you don't learn what it takes to remain in the market. Be very calculative and smart with your dealings and follow the golden rules.Trading is not gambling. There is a clear difference between the two,so don't gamble with your money as a trader,rather trade with it. Thanks for your time once again.


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Hello dearest friend @lhorgic
Thank you very much for giving such an informative post.
I enjoyed going through your post and I hope to read more of your interesting post.

#steem-on 💙

Dear friend, your comment is much appreciated. Thanks for always.

Nice article my friend, you've explained thoroughly

I appreciate your comment.

You have done good research to explain very important facts about protecting our portfolio. Personally, I'm following the Portfolio Diversification method and that's why I could save more than 60 of my assets even if I had invested in the Luna project.

Wao! This is good. Am glad you're practicing this strategy already. It's a proof that it works.

A pleasure to hear that brother. Keep writing such interesting articles here. I hope to see another great article from you soon.

Protecting portfolio is very essential for everyone and you have explained it in a nice way.
Thank you for sharing with us

Thank for dropping by dear friend.I really appreciate your comment.

a good and interesting discussion, thank you for sharing here and of course this is very useful for many people

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@lhorgic Hope you are doing well in life . I have a small interesting proposal/offer for you. if you could take out few minutes to listen. i will be gladfull. if you like the offer you join. I promise you won't regret it 🙏🙂. It's regarding the growth of your account , the platform, community and members, all will be benifited. 🙏🙂

Thank you for lecturing us
A nice tip that worth keeping in mind

You are always welcome friend.