All the berries in one bucket?
One of the most important rules when it comes to investing is: "Diversify as much as possible!"
With a solid investment strategy you have to follow certain rules with discipline. This is one of the rules. The mind tends to cling to concepts or some favourite assets. What happens is your portfolio has more risk due to the phenomenon called "lump risk". It means most of your money is betting on a single asset and when it breaks your wealth goes down the river with it.
Don't put all your eggs in one basked!
That's what it is called metaphorically. If you carry all your eggs in one basked and the basked falls to ground you are empty handed and hungry. Or a similar quote is: "Don't bet all your money on a single horse." Different metaphor similar meaning.
One of the most important rules
I am aware that this is one of the most important rules when it comes to investing with a solid investment strategy. It is about risk management. reducing risks and get the most out of the market. That is why ETF's became so popular. It is a investment tool to diversify even with small amounts of money.
Is bitcoin breaking the rule?
For the first time it looks like I broke this rule. Bitcoin (not crypto in general) looks like an opportunity of a lifetime because it is a whole new tech and it's early in terms of adoption. Because of the decentralization it is a super stable asset which makes me confident to invest. It is not like a company with a stock that could be miss-managed and go broke.
Nevertheless I noticed that my diversification rule is broken. The majority of my Portfolio is now invested in Bitcoin (this is no financial advice, do your own research) compared to some ETF's, stocks, commodities and my filming equipment. Should I be concerned? what do you think?
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CRYPTO RECOMMENDATIONS
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Travel
Where I book hotels: https://bit.ly/riohotel
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Credit card with best commissions for travels: http://bit.ly/travelcreditcard
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„Should I be concerned? what do you think?“
Good to know! if we fall, we fall together ;)
"schöns tägli!"
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