STEEMIT CRYPTO ACADEMY WEEK 7 TASK: MONEY MANAGEMENT & PORTFOLIO MANAGEMENT (Lecture by professor @stream4u) // task Done by @chilaw

Good day Guys, hope we are all feeling well today? I am delighted to participate in week-7 homework task by @stream4u on money management on Crypto Trading. Thank you @stream4u for the lessons in week7, it was impactful .

HOMEWORK WEEK-7 TASK

MAKE A HOMEWORK TASK7 POST ON THE BELOW TOPICS AND YOU CAN ALSO DISCUSS ACCORDING TO YOUR VIEW ON IT, AND TRY TO EXPLORE IT AS MUCH AS POSSIBLE BUT IN SIMPLE TERMS.

DISCUSS MONEY MANAGEMENT
Money management is a liquidity channel that enables the activities of trading buying and trading of assets. It is a veritable means of managing risk to its minimum level and hence maximizing profits or return on investments. For me, i think it helps in placing focus on what i do in trading as the life wire of any successful investor should be tied to how best he was able to manage and plan with his assets before him. And one Money management would help ameliorate during trading is "trading with sentiments". This particular drive will not stop in ending your activities in the trading community by loss of assets, we should avoid this in all possible form.

In same vain, in money management system, it is better we itemize our investment plan in such a way that we are not caught unawares by forces of losses. We are expected to itemize our investment plan based on the size of market and coins to be invested and this should be done across board. When i say size of markets, i simply mean the use of Large Cap markets, Mid Cap and Small Cap Markets. We all know that this different markets caps have their peculiarities, Some are less risky with conservative profits (Large cap market with over $10billion worth of value), Some with intermediary risk levels higher than what is seen in the large market but with sizable profits (Markets between $1-10billion worth of value) while the other with less than $1billion worth of value is the Small Cap market saddled with high risk level but with tendencies to offer high profits too.

So, a certain percentage of investment plans should be spread across board with focus given to the large Cap market with future benefits since it has lesser risk level. Say 80% may go into it this kind of futuristic market, while 20% can invested in all other market with 20% from the balance 20% should be invested in other 5coins fr adequate spread and curtailing any form of losses.

FUTURE PLAN ON MONEY MANAGEMENT

This is an eye opener into managing my assets better. Primarily my plan is to have a long term investment plan from the Large Cap market which gives me the benefits and minimal risk in attending my ROI. For other MID or Small Caps market, i will need more technical analysis before venturing fully into it to avoid loss of assets. But for sure, there would be need to spread my investment on different coins to reduce cases of unforeseen loss of assets.

Money management is specific for every trader which is best for him in minimizing risk and maximizing profits at a short possible time. Risk level, time frame, stop mechanism and other tools may be differ, but one unique strategy is that, they are all geared towards one goal which is to make profits. These are some of the key tools any investor may take into consideration before attending that level of possible excellent trade.

• Every investor should be able to determine his RISK LEVEL. No matter how determine one may be during trading, you should be able to have a peg on the number of losses you should place as ceiling. If your risk level is pegged at $10/day, you should be able to maintain this module so as not to break your management approach or venture into sentimental trading.
• Every investor using the money management should be able to set a TRADING GOAL. For any expert in the market, this is one of the key tools he should implore to set things straight. He should be able to implore the use of risk reward ratio whereby a certain amount of monies are set or stake in expectation of a bigger rewards in return. For example, investor A may want to set his trading goal by the use of $1:$5 risk reward ratio. This simply means for every $1 risked in a trade, he expects to get an additional $5 in return. One thing in a trade is that, we have to risk ,but it is joyful that one risk yield results as expected. (The higher the risk, the higher the profits).
• Determining your Entry rules. This would help in knowing your preferred "buy in". An investor may prefer when trading goes beerish before he buys in while others may want the bullish movement. Other factors include the volume, indicators, S&R level are all considered before making an entry.
• Determining your Exit rules: One thing is to enter a trade and the other is to know when to exit. Exit rules are very strategic and all rules set to determine when to exit should strongly applied to avoid heading for the woods. This would either go both ways; stopping losses when you've reached your risk level for the day to avoid more losses or making profits enough not to loose touch by any sudden decline.

DISCUSS PORTFOLIO MANAGEMENT , IF YOU HAVE ANY INVESTMENT AND IF IT IS OKAY WITH YOU THEN SHOW PORTFOLIO AND EXPLORE IT BRIEFLY

From my understanding , portfolio management has to do with the a group of assets that make up ones favorite list of assets which may include FIAT, CRYPTOS and other COMMODITIES (Gold). The are collection of assets in my exchange wallet account used for either investment or trading. Portfolio management helps to gives me a picture of all my active assets in a glance.
I AM A NEWBIE IN THE CRYPTO-COMMUNITY, SO I AM YET TO HAVE ANY EXCHAGE ACCOUNT WHERE I CAN EXPLORE MY PORTFOLIO OR WATCHLIST AS REQUIRED.

FUTURE PLAN ON YOUR PORTFOLIO MANAGEMENT

With the route to market where crypto is taking over, I have plans as a newbie to understudy more of the happenings in the digital market and make my required investment. But firstly, my line of investment would strictly be in the Large Cap markets like the BTC, ETH etc. where i don't require much of the technical analysis to drive ROI. This also have the minimal risk required to for anyone to handle.

Just like narrated before, i am barely few weeks old in the crypto industry, hence have not invested in anywhere. So the issue of failure have not occurred, but measures to curb this would definitely be put in placed when im prepared for it.

CONCLUSION
The need for money management is key in every investment plan since this is the bedrock towards driving profitability. Also knowing the factors to always consider in each market size is very key to be well guided accordingly.

Thank you everyone. This is my submission for this homework week 7 task.

professor @stream4u, this is my entry