Latest World News

“Investments should never be a guessing game” – Lead strategist and NFT Expert

12
Photo credit: David Rojas, with permission

“Put down $50. If you can toss the rubber hoop down around the bottle, you get $100. If you can’t, you lose your $50.”

Game on. The con artists at the park know just how to get you dreaming blindly big. At your first toss, the hoop circles down the bottle. $100 in the bag. Then the little devil pops up on your shoulder, “Sink in the whole thing and win $200. You could get $1000 in due time!” Next toss, hoop goes around. $200 is yours. Now, you’re probably thinking you’re on a super-lucky streak. Since the first two unprepared, unplanned, and un-strategized tosses were successful, the third stands a pretty solid chance.

On the toss, the hoop knocks down the bottle or flies off the square. Now, you haven’t just lost your $50, but also the $150 profit.

This scenario is exactly how guessing with major investments can land you in deeply negative bankruptcy slopes in one fell swoop. All it takes is one arrogantly informed bad decision to knock you off course, or it could be a string of smaller poor choices leading up to the final straw. Whatever your investments are: stocks, equity funds, real estate, minerals, shares, collectibles, NFTs, cryptocurrencies, the fact remains the same – there is NOTHING as false as the idea of a “sure game” or a sure bet, but there are measures that can actively mitigate risks as much as possible. The fact that risks will always abound should never encourage flying blind in the markets and making decisions based on “gut feeling”.

Irresponsible Investments are life-wrecking

Taking cues from a leading investment consulting company, Blue Castle Ventures, a highly dependable strategy toward investment could be simplified as follows: Building a model using predictive analytics to choose your position, controlled risk where chosen stocks are reviewed every quarter, identifying high trends within specific sectors, constantly running simulations with millions of variables and choosing the best outcomes, and actively day-trading to keep up with market changes.

This blueprint is Blue Castle’s winning strategy to greatly mitigate the losses that would otherwise stack up if guessing games are played with hard-earned funds.

“The riskier the asset, the more reward you can get,” says David Rojas, a Colombian entrepreneur in Canada, expert investment consultant, and the founder and CEO of Blue Castle Ventures. “However, if you don’t do it responsibly, it’s always catastrophic. You’re going to lose all your money. Reading through Reddit you see complaints like, ‘I lost 98% of my portfolio, and that was what my grandma left me. From $300,000 to $9,000’. It’s saddening because, with $300,000, you could have bought really good stocks, make more money and stay safer. With investments, you just have to do it responsibly with a plan, a real money management strategy, a risk-reward ratio, and have everything well organized. It’s doable, but most people don’t attempt this and they just dive in head-first.”

In reality, most people make investment decisions based on hearsay or enticing returns seen on social media. If someone buys a beach house or starts touring the world based on lucky profits made off a stock just one week before it crashes, the company often gets that final boom of eager investors with ridiculous expectations diving in head-first, completely unprepared. Sometimes, a company that has been trending positively can cash out at any point and the stock plummets. Since there’s no set-in-stone formula, there should also be no rash decisions.

Getting straight with real, solid strategy

Rule number one: Never invest in possibilities.

This is often where the online course gurus start playing the “no risk no reward” card. However, if something is not already in play and rolling in motion, don’t bet on it, no matter how strong the signs are. Before the legalization of marijuana in many US states and Canada, lots of investors started putting money into start-ups and companies selling marijuana deliverables. It wasn’t even approved yet. Today, with the slow momentum of the market, well, for people who sunk in six to seven figures, the returns are a little more underwhelming than they anticipated.

Next, you must do your research and have a strategy. While looking at the historical data and past trends of stocks won’t always guarantee accurate insights, you’d at least have a strong sense of what you’re dealing with. You need to create a fund management plan and stick to it. Do not push your stop losses and don’t over-invest based on attractive trend curves and hearsay. If you’re not a pro, let the pros run point for you. This does not include sweet-tongued brokers and thirsty managers, but real investment companies with legitimate portfolios.

Finally, go for options that are higher up on the safety spectrum. For instance, Blue Castle has proposed a unique approach to buying and selling volatile NFTs that offers physical collateral in case of platform branches – the world’s first physically backed up NFTs. People will not only acquire the digital image, which can be worthless, but also the physical art, which also makes them some money. Also, their system runs with an algorithm that does not allow a piece to be sold for less than its previous price, which means that prices can only go up. This is an example of an investment option with highly mitigated risk in comparison to others.

In conclusion, CEO Rojas shares his personal daily investment workflow: “I get up every day at 4:30 am. The first thing I do is to check the market to see what type of stock is the biggest gainer of the morning. That gives me some idea of how good they will look. I get on with my day and at about 7 am, I look at the market again and see if those first gainers are still there. And then I can determine which sectors are moving. I choose my favorites with seven different items and make my plan. I have to be aware of how much I can lose. Then I make some trades and I don’t look at it anymore. I know I’ve made some money in the morning and I carry on with some meetings. At about noon after having my lunch, I check the market again. Timing is very important. I see some of the stocks that I chose in the morning there. And that’s even the safest moment because they have already survived the whole day, the whole battery that happens there. And then I just keep investing until the day is over.”


Interesting Related Article: “Proper Tips and Tricks for Investing in NFTs“

Source: Market Business News