Facebook laid off 10000 employees, Amazon did the same. Should you be worried? Not if you have worked on your personal finance.
Here are the best tips for investing. I have taken the example of the crypto meltdown that happened this week, to make it more relevant.
Invest only in what you know. If you just invest in anything for the fad, you are treading the wrong path. Crypto crash is your best example. Warren Buffet famously said for the right reason - “Never invest in a business that you don’t understand.”
Don’t put all your egg in one basket. Imagine, had you invested all your money in FTT token 75% of capital would’ve been wiped out in a single day.
- Always stay away from risky bets. Warren Buffet commented on crypto during AGM “if someone is ready to sell me all of the cryptos in the world for $25.00 I won’t buy.”
4.Invest in an asset which you can hold forever. This Crypto crash was the stark reminder that anything can happen in the market in the short term, if you are not confident to hold something for more than 10 years don’t enter the stock market.
- Trading/investing is very risky without stop loss. Financial market is very uncertain, don’t invest if you can’t bear the fact that You can lose it all. And always put a stop loss to avoid overnight risk.
Thanks for reading, do comment if you found it useful.