3 Rules I Live By As a Successful Investor

I don't write frequently on Hive but I've decided to become a lot more active in 2023. As some of you might know, I am a successful trader and investor

I've spent my life obsessing over investing and learning how to be better at the craft. There are so many things I've learned over the years.

Below I spent some time thinking about the 3 most basic principles that have made me a good investor. Leave a comment below and let me know if you think you have these qualities / what you might do to strengthen them in your own investing career!

B understanding a few basic principles, you can make your investment journey a lot easier. In this LeoFinance post, we'll go over 3 basic investing principles that everyone should know. These are 3 principles that have personally helped me become a better investor.

Diversification: One of the most important principles of investing is diversification, which simply means spreading your money around different investments to reduce risk. An easy way to think of it is "don't put all your eggs in one basket."

An example of this is a hypothetical portfolio with 20% invested in stocks, 20% in bonds, 20% in real estate and 40% in cash. In this example, even if one of the asset classes performs poorly, the rest of the portfolio can help cushion the blow and minimize overall losses.

Even though I love crypto, I don't keep all my money in hive or any other crypto. I spread it around to different asset classes.

Long-term perspective: Investing is a long-term game, and you should think about it as such. It's important to remember that short-term fluctuations in the market should not be a cause for concern; it's the long-term performance that matters.

For instance, imagine you invested in a stock in 2016, and its performance was mediocre in the first year, but it started to soar in the years that followed and is still doing well, so you would not have wanted to pull out your investments after the first year. Be a long-term thinker, Hiver!

Cost-effective: One of the most powerful ways to increase your returns is to minimize costs. This means choosing low-cost index funds over actively managed funds, and being mindful of the fees you're paying to invest.

In crypto, we can often pay high fees to move money around. Get smart about which exchanges and blockchains you use. Hive is a great place to invest because the fees are 0!

For example, if you invest $10,000 in a fund that has a 2% expense ratio, you'll pay $200 in fees. However, if you choose a fund with a 0.2% expense ratio, you'll pay just $20 in fees. Over time, these small differences can add up to a significant amount of money. As an index investor, this has made A HUGE difference in my long-term gains.

By following these three basic investing principles, you'll be well on your way to building a solid portfolio!

Just remember that crypto isn't everything. Stocks aren't everything either. Always be learning about different strategies and asset classes. Hive and LeoFinance are a great place to do so!

---

---

My name is Asteroids - well, that's my Hive name, anyways. I believe firmly in the future of Web3 technology and its potential to reshape our lives. I'm a serial entrepreneur and my aim in life is to always evolve and find new ways to leverage technology in my life.

As I continue to build things, I find new and important wisdom in all sorts of places. My goal here on Hive is simply to share that wisdom so that you can improve as well.

Working is as much about building good habits as it is about doing the actual work. Remembering this on a daily basis has changed my life for the better.

---

---

Until next time,

-A

Posted Using LeoFinance ^Beta