investment principles that every investor should follow.(part 2)
📍Principle 5: Buy cheap diversified index funds.
A low-cost investment fund with low operating costs, reflecting the market as a whole, beats most mutual funds because its investors are not trying to beat the market, they are the market itself!
In cryptocurrency this is BTC and the top blockchain projects.
📍Principle 6. Choose the right assets.
Which assets do you plan to put in your portfolio? In what proportion?
📍Principle 7. Diversify.
Diversification is a strategy that involves combining a wide range of investments in a portfolio.
Diversification:
✅ Reduces portfolio risk
✅ Protects against market volatility
✅ Generates higher long-term profits.
📍Principle 8. Create an investment philosophy.
I already talked about it couple of weeks back, you can read it here.
📍Principle 9. Create an investment strategy.
✅ Avoid losses
✅ Risk small for big profits
✅ Diversify.
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