Investing must be done properly
You need a strategy. If you have listened to the previous episodes, you might have heard me saying that a couple of times. I still mention it because it is very important
What I prefer is not get in at the top. When the prices go up, the general public get what we call greedy. They want to buy in. However, history shows us that the market will go down. It is just a matter of time.
I do not want to get in at the top. I want to get in at a cheaper price.
I want to see it falling, so we can buy low, and sell high. Quite the opposite to what people without a strategy might do.
Okey, I want to get in at a low price, and sell higher. What great news? You might say “Joakim, come on, tell me something deeper. That is intuitive, it sounds reasonable, I heard that before”
Let me ask you, “how do you do this in reality”?
What do you invest in?
When do you buy in?
Most people buy into the market because they now had the time to sit down and look at the market. That is no strategy. The market doesn’t adjust itself to your schedule and present the opportunity at your will.
Some people buy into the market because it was now, they had the money available. That too is no strategy. It is poor money management. You need to get yourself a habit so you set aside money on a regular basis.
Some even buy because the price had been going up and up and up, and now they put all their money in.
But of course, none of you guys who listen in does any such things, do you?
I am very grateful that you tune in to educate yourself.
Let us take a step back. I want to buy cheap, and I want to feather my money. That means, I don’t go in with all my money at once. Why?
It is actually a good tactic to use in any kind of project if you are lending money. You can choose to get the loan partially dripped, so you have to achieve certain milestones before the next lot of money is paid and given to you. In this way, you can ensure that the project develops in the right way, and you can allocate money as it is necessary throughout the lifetime of the project.
We can practice the same in investing. It is called feathering. I do not invest the entire amount at once
And I plan of all of this in advance. I have rules I follow. And the market does whatever it does. And I get in on the opportunity when it is presented to me. Let me be clearer: when it is presented to the system, and my system takes care of the heavy lifting. I just plan this.
The same goes for securing profits. A profitable investment never becomes unprofitable
With proper rules, with a step by step system, you can plan our investments in in advance, and go out and do other things, and only keep an eye on this on a weekly basis.