Well we all know that it is good for one to always take the risk in a that they do but there are times that we ought to trade carefully and not take the risk unplanned all in the name of risk takers makes it big in life and with that I came up with risk management in passive income. In this one has to know when to invest and the amount to invest in any passive investment.
Risk management in passive income.
- Thread starter Blessed19
- Start date
Before going into any investment it is essential to know your risk tolerance level so you don't get too emotional about it. Then you need to learn very well about what you are going into
I have not seen any business with no risk but you need to carry out proper research on any investment to carry out.
It is true that carrying out research on a particular investment is part of the risk management strategy.
Every business and investment will have a risk, therefore risk management is an attempt to reduce risk, by analyzing the sources of risk. Passive income does not require risk management but investment instruments do require risk management, so you need to create a portfolio and diversify.
It is true that every investment has its own risk and there is no need to carry out proper analysis on the risk that is involved.
We don't need to analyze every investment instrument in detail and in depth, be it stocks, crypto, gold, property, etc. especially in types of investment that have high marketcap or bluechips such as Bitcoin and Ethereum, or bluechip stocks.
I'm still of the opinion that, irrespective of how promising the Investment is, you needed to carry out proper examination on them.
We need to do proper and in-depth research or examination when we buy an IPO, ICO or meme token, but I don't need in-depth research when buying Bitcoin at low prices, because my orientation is for the long term, while Bitcoin is the most trusted and safe crypto .
it is not sensible for people to invest in anything if they're not knowledgeable about it. Carrying out personal research is always important and necessary if not you may end up losing your money.
Of course an investor has to do studies, research, and analysis, especially when investing in an IPO that has just been released and offered on the primary market, for the short term, so we have to do fundamental analysis, and investors will immediately sell shares a few days after they are launched on the stock exchange.
You're right, I actually make investment in the crypto market and before then I have to do a lot of analysis both technical and fundamentals. As an investor you have a lot of work to do both on the short-term and and the long term.
