Follow the whales; secret to investing

in LeoFinance14 days ago


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Taking advantage of opportunity can be a very hectic task. In the world of investing, two outcomes are very certain, either a loss or gain. financial markets are full of investors and money enthusiasts. While it favors some, many have always been left to lick their wounds. Information is what drives money, wealth and assets direction. At the stage of being uninformed you become very vulnerable.

Does investing have a secret? Of course, everything in life has its secret, and those who know more are likely to capitalize on the less privileged. How long have you been in the market?How has your portfolio looked so far? Still in the 'try again phase'?. time flies you know and we age, without achievements this can be summarized in one way as loss.

Before going into the financial markets, let's look at how even the local markets and businesses operate. For instance, when I wanted to venture into the clothing business I made a lot of research, probably with those who have seen success upon success from the particular market. Was I doing the wrong thing? Absolutely not, despite the fact that I will still have to face personal challenges, a path has been set for me to follow. This to me has been a hedge I have used to thrive even in difficult times.

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Even as I plan to expand my business, the secret is working with those who have had the experience, who know the details and in depth analysis of what I am about to venture into. They give me hints about time, seasons and the needed strategic analysis of how to capture the needed customer base and create a pastureland in business. How often do we underestimate the word 'leverage'. We most times try to wear ourselves over solution-able situations.

Let's come back to the financial market, how do you invest in the market? Luck or instinct? Not a big fan of luck, instinct does work most times yet don't mistaken emotional decisions for instinct, you'll soon part ways with your money. I am not much of a market guru, in short I have been on long term market conditions rather than follow quick hypes and news that sell mostly for the advantage of a few hands. Nevertheless, if I were to return the short trading way I would love to take advantage of information.

How do I get access to vital information about the market? Find a reputable source. Not ALL investors have the time to stay around and hype markets yet they have the news. I would be following their portfolio's to see and know what asset they buy. Thanks to the introduction of crypto asset portfolio trackers, this can be done. Maybe we don't really see the full potentials of this app in the world of financial decisions. How often does the market bleed just a day or two when a whale investor makes moves and switch assets.

Information flows like something moving down the pyramid, those on TOP have it hot and those beneath will suffer the results because before it spreads down to them it has already become diluted and executed. The mind of investors reflects on their portfolios. Just like when Grayscale were offloading, we saw that daily impart also same when Blackrock were also accumulating. This firms have a group of experts working for them, bringing in hot news every minute of the day and there you are depending on yourself to solve market problems.

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I once told my friends a lot of investors share the same destiny and that's a 'dead end'. If you've succeeded in the market for a while NOW trading through personal knowledge, just be very careful because when you run out of luck, you'll return to square one. I've had such an experience before during my early trading days. A single consistent market decline ended the days of hard work. Why did I fail?, I chose to buy the dip and lacked the news that nothing was working anymore for such 'shit coins'. It was heading to dust and I never knew this.

Big holders were pulling out and I was ignorantly diving in and boom! It led to destination nowhere. It's only funny to talk about them now because it was very painful then. Picking your whales to tread their path can save you both time and money. The secret to investing is working with those who know better, those who are the news. The media and social networks always deliver the news late, that's why you often fall victim. How many times have you always come to later know why a market liquidated? Is that the best time to know? When loss has swept your portfolio by almost 50% if not more.

To conclude, let me add, I would suggest you start looking for reputable investors who have always proven to move with green candles. track their portfolios and make the same market decisions. This is very uneasy to adopt as it will always be full of inconveniences, yet the assurance should always be, this guys alway come out clean. The Internet is open for research and follow up, do your due diligence and understand that the added secret to market success is not how many good shots you got but how efficient a single shot can be. Avoid the blind market game or it may turn out to be 'a fool and his money soon part ways'.

What are your takes in this? Can this market strategy yield result, join in the conversation. As the case will always be, do your proper research, this is assumed not to be a financial advice. Thanks for your usual understanding.

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Inflation works the same was as you describe information distribution:

  1. Central bank creates money from nothing and distributes it to its immediate contacts. Since prices had not yet changed, people getting this newly created money benefit from it in every way.
  2. These contacts begin to spend this money on whatever they want, including other income-producing assets and luxury goods. Prices had not changed yet.
  3. Over time, this money flows into the rest of "the economy" where everyone else lives. This is where prices begin to increase, since more money is now in circulation. It is at this point where it takes more money to buy 1 unit of something. More money for the same amount of goods-- the classic definition of inflation.
  4. Step 3 repeats until it reaches us. By the time the recently created central bank money reaches us, prices had already risen. We got no benefit in the way the central bank's immediate contacts got theirs.

By the time we receive information-- "my taxi driver gave me this stock tip"-- it's already too late for us.

Unlike with central bank money, information can be accessed by anyone if we know where to look for it (and I'm not even considering the situation of insider trading). This is why it makes sense to see what the whales are doing, or people known for being ahead of the curve (even if they benefit from direct insider trading).