Crypto Academy Week 7-Homework Post for @stream4u

Hello fellow cryptonians, i really appreciate this community for the support you have been given out especially @stream4u.

                        HOW MONEY IS MANAGED

Money management is the process of budgeting and investing one's money/capital(small or big) through strategic ways into different cryptocurrency assets in order to gain high interests for any spent amount. It helps to reduce the amount of money we spend on items/things( including firms and institutions ) that does not add up any significant value to our standard of living.

Investors must also make sure not to invest into just one asset with all their hard earned capitals but should divide thier money into two(2) or four(4) parts instead,because the probability of earning from just an asset e.g. stocks,mutual funds and bonds,is not totally assured.

       FUTURE PLAN ON HOW TO MANAGE YOUR MONEY IN TRADING

Unlike how roughly 60% of we the youth in Africa(Ghana) spend our life savings on insignificant things that would not bring any reasonable profit to our financial status. Having this in mind, you have plan on how to manage your capital regardless of the amount(capital you want to invest) to gain an income. Thus; by investing into assets that you have thoroughly read and investigated about(known and trusted by many) at the right time when there is a buying chance.
We all know that, there is alot of pressure one undergoes when trading with their investments, it takes patience and tolerance to build up a successful trading career. Its just like gambling and earning a huge sum does not come off easily.

Learn to stick to your trading plans regardless on how messed up your trading becomes, because many investors literally "lose their minds" when they few trades. So its necessary for you to write down your strategy and follow them.

                       PORTFOLIO MANAGEMENT

Portfolio: is the collection of programs used to manage outputs and benefits of an investment.Basically,portfolio management is when all the assets of an investment are brought together by an investor to simply know whether his/her is producing a profit or not.

                  TYPES OF PORTFOLIO MANAGEMENT

1. Discretionary Portfolio Management : In this type of management,the manager takes absolute control of their clients investments by buying and selling on behalf of them and uses strategies they see best.The advantage of handling all you capital to an expert makes life simpler.

2.Non discretionary portfolio management: Management of this form has nothing to do with the manager placing trades for his/her clients without their concern,but instead tend to give the advantages and disadvantages of investing in a specific asset.

1. Passive portfolio management: Investors who seek to low their chances of failure often prefer passive strategies and also takes time to gain.

2. Active portfolio management: can only be used by experts in the trading market who usually allocate high capitals to assets and with an extremely high risk appetite.

In conclusion, money management is a strategic way of investing one's capital into an asset to earn a profit and which of course can go otherwise. So its advisable for every investor to keep their head straight in the game even when some the trades go wrong.

I also thank @stream4u for continuing his lecture on money and portfolio management because it has helped me to know more about how to invest and keep track on my investments. i hope my task for homework-7 will be selected and approved. Thank You

Cc:-
@stream4u
@steemcurator01
@steemcurator02