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Investing Tip - How to Make the Biggest Returns in 2021?

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Today we are discussing something that I don't see being talked about very often, which is the topic of different investments in different seasons. Ray Dalio is famous for talking about different economic seasons.

I'm going to share my observations from people that I know who tend to to amazingly well with their investments pretty consistently. What are their secrets?
One thing that needs to be taken into account is the trends in the market. I was personally never a big fan of trends, but the reality is when investing this is something that really matters.
Sometimes market is on fire, and you want to jump in.

You don't have to be a genius in order to follow trends and do well. We've all seen what happened in the crypto space in 2017 when Bitcoin boomed. There were ICOs that just skyrocketed out of nothing!

When I observe great investors that I know, I notice that they behave differently depending on the cycle the market is in. It is very important to monitor the market cycle at any given time.

Also, it is important to NOT buy when things are at a peak. Imagine if you invested in Bitcoin in late 2017. when it was super high. Not a good choice! If everyone is talking about something it's probably a good idea to move on to something else.

If you're in the cycle where everything is going well, it may be worth it to take more risk as you could make crazy returns. This is exactly what happened to people who were investing in different cryptos at the time (2017), some of those coins went 200x in value.

The opposite is also true. If we're in a bad cycle where things are not going so well, you don't want to take much risk. The market in 2020 was a great example of this. Very few succesful investors didn't like to play safe in the last year.

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Author: Michael Rosmer

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22 января 2021 г. 17:30:14
00:21:16
Яндекс.Метрика