Hello fellow steemians, it is a great priviledge to write once again in this homework task. This time, I am writing on money management and portfolio management by @stream4u.

Introduction.

This is an important aspect of any business a person engages in. Whether we are a petty trader, truck pusher, a big business mogul or a trader, the way we manage finances determine the longevity and success of the business we do. Thus it is very fundamental to everything we do, even within the family.

The same is applicable to to our investments. There is need to ascertain the best way to invest our capital such that it will not be totally lost.

This is where money managrment comes in.

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What is money management?

Money management refers to the process of budgeting, saving, investing, spending, or overseeing our capital usage.
Reference

In simple terms, we can refer to it as a way we appropriate our capital such that it is not lost entirely reduce losses and increae our profit taking. This shows, that when we want to invest our capital, we do not need to to put all our eggs in one basket, but spread such capital to various investments. This means we have to divide it into various parts.
This is very important because, in the crypto market, we have seen some assets do well in a shorter time while others require longer time to get to our profit taking position.

So how can this be done?

After a thorough technical study of our chart patterns, trying to find out out the resistance and supports of an assets, we can then select the assets we need to invest in. This will be done with only a portion of our capital. We need to realize fhat no matter how small our capital may be, it is very essential to divide them into several parts during investments. Thus we need to research out as many assets as possible to invest in.

Why the need to trade in so many pairs?

This is because, there are possiblities of investing in an asset, and it goes the opposite direction, thus locking up our capital. Hence, if we have invested large sums in it, it will result to huge losses. But when we invest several part of the capital in different asset pairs at the right time, while it may be possible that some might go in the opposite direction, others will go in our proposed direction, thus giving us opportunity to make profit and cover the losses of the others.

However, it is always advisable to divide our capitals into parts and invest in such a way that irrespective of how promising an asset could be. Our ability to avoid the greed, will help us to manage our capital wisely.

Future Plan on Money Management

Having gone through this lecture, in the future, I am going to make a change in my money management strategy. Before now, i have traded pairs that ended up incuring heavy losses for me and this has been painful. However, with the onset of your lectures in trading and especially this, I will be dviding my capital now into several parts while investing. No matter, how small, i will divide into four parts and trade accordingly.

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Portfolio Management

Closely associated to money management is the above. This has to do with selecting and overseeing a group of investments that can be profitable and at the same time have a reduced loss limit as a trader. As a trader or an investor, we need to know how to spread our investment in several business climate to minimise risk and maximize returns. This is imperative because, if our investment is only in a sector of an economy like bonds alone, and there is serious reduction in interest rate, it can seriously affect our investment. However, if our portfolio includes investments in several sectors of the economy represented by our trading assets, it will be difficult to be totally affected in case the market takes a negative downturn.

Right now, I have investment in only an asset in the large capital range, it was just yesterday, that i was making some comparison and noticed its performance was low compared to many others in the mid capital and small capital range. Thus I am going to create a portfolio with it, to spread my risk and increase my chances of more profitability. My future portfolio management will include investment in international stocks in various sectors of the economy, if I can get a helper like you, crypto assets, trading pairs,

When was the last investment failed and Why? (those who have experienced this can provide views.)

My last investment failed about 2 months ago, when I traded the pair of sushidown/usdt. It was not funny to lose all my invesrment in that. The pair was just introduced in the exchange i am using u and I keyed into it. However, it went down until it became untradable. Sorry that the screenshot is not available.

Conclusion

The benefit of money management and choosing the right portfolio can not be overemphasized. No matter the size of my capital, I should apply both. The smaller my capital, the more i need to hold multiple assets to diversify my risk and reduce my losses. I have also learned the importance of studying the market very well before taking a trade.

Thanks for going thru my homework task.
Cc: @steemcurator01
Cc: @steemcurator02
Cc: @stream4u