Are you ready to unlock your full investing potential?
Discover 3 proven strategies that will revolutionize your approach to wealth accumulation.
Learning from others' experiences
All your decisions and opinions are influenced by the experiences of others. You're not as unique as you may think.
Even now, as you read this thread, you seek to learn from my experiences and apply them to your own life.
The typical investor's journey:
->No money
-> Earned a little
-> Inflation of consumption (jeans, phone, etc.)
-> Thoughts of saving for a rainy day
-> Starting with something simple (bank deposit)
-> Pursuit of profit
-> Investment clubs, communities, crypto, and this article
Moral
The sooner you learn how to effectively learn from others' experience and apply it in your life, the faster you'll develop.
Not everyone's experience will suit you, and that's okay. Learn from those whose results inspire you and whom you'd like to meet.
Formation. Growth. Preservation
These are the 3 main phases of managing your capital.
There are clear metrics to determine which phase you're in, and it becomes clearer how to transition to the next phase faster.
Formation
All earnings are spent on expenses, with no significant savings.
Objective: micro expenses, dozens of attempts, ultra-high risk, occasional big wins.
Why: without risk, it's impossible to multiply your capital exponentially, and any losses can be quickly earned back.
Growth
There's a nest egg that can sustain you for at least 3 months without any income.
Objective: avoid casino-like mechanics, portfolio rebalancing, hiring employees, trying new things.
Why: losses are harder to recover, rapid scaling, and personal involvement in the work.
Preservation
Income from the portfolio fully supports you.
Objective: a formed team with managers, transition to a "big idea."
Why: Long-term planning horizon, managers because portfolio preservation requires diversification of directions.
PBG
Preservation, Balance, and Growth are the three elements that portfolios mostly consist of.
The PBG proportions of the portfolio are as follows for each stage:
• Capital formation - 20/30/50
• Capital growth - 33/33/33
• Capital preservation - 10/50/40
#Binance Fam , i hope you learned something from this article.
