•5 years
Should I change my investment strategy over time?
As in the subject. Should I change my trading strategy over time or is it better to always stick to one strategy? Which method can give better results? What do you think?
Thanks
As in the subject. Should I change my trading strategy over time or is it better to always stick to one strategy? Which method can give better results? What do you think?
Thanks
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In my opinion, it is always worth keeping your finger on the pulse and in the event of unexpected circumstances or the approaching end of the period for which we have decided to invest our funds, withdraw or transfer them to another instrument. However, frequent changes of mind can be very detrimental to the portfolio as financial markets tend to be cyclical and of course it is better to go uphill than downhill. It is different when, for example, we are approaching retirement, and the money invested was to be used to raise the standard of living in the old age. Then there are no such maneuvering possibilities. It is best to apply the principle of increasing the level of security as you approach retirement or some other very important event. A completely different risk is associated with owning government or corporate bonds, emerging market stocks or cryptocurrencies. Each of these types of assets is also classified into more or less secure. Financial markets are characterized by a cyclical nature, i.e. the alternating periods of boom and bust lasting from several to several years, depending on the type of market and the macroeconomic situation. For this reason, better returns on investment are often achieved by patient, long-term investors, because even in the event of a loss on a given asset, they can still make up for it after the next bull market (Warren Buffett is a perfect example for me). A beginner should not, in my opinion, have more than 5-10% of risky assets (I mean, first of all, cryptocurrencies and derivatives such as futures and options) and only on the condition that they expect to lose them completely. Elderly people should rather focus on capital protection and give up on them completely, possibly keeping the symbolic 1-2 percent. Bitcoin or Ethera, because these two cryptocurrencies are considered the safest. Deposits or bonds will be better. Younger market participants have more room for maneuver, provided that they do not invest funds that they may need in a short time. They should not throw all their money into risky assets, as they usually do not have experience with investing yet and if they lose money completely, they will need time to rebuild capital and start over. There is no universal answer to your question, everyone should choose a strategy for themselves, assessing their level of experience and propensity to risk, and above all, educate themselves and invest only what can be lost.
In my opinion, it is always worth keeping your finger on the pulse and in the event of unexpected circumstances or the approaching end of the period for which we have decided to invest our funds, withdraw or transfer them to another instrument. However, frequent changes of mind can be very detrimental to the portfolio as financial markets tend to be cyclical and of course it is better to go uphill than downhill. It is different when, for example, we are approaching retirement, and the money invested was to be used to raise the standard of living in the old age. Then there are no such maneuvering possibilities. It is best to apply the principle of increasing the level of security as you approach retirement or some other very important event. A completely different risk is associated with owning government or corporate bonds, emerging market stocks or cryptocurrencies. Each of these types of assets is also classified into more or less secure. Financial markets are characterized by a cyclical nature, i.e. the alternating periods of boom and bust lasting from several to several years, depending on the type of market and the macroeconomic situation. For this reason, better returns on investment are often achieved by patient, long-term investors, because even in the event of a loss on a given asset, they can still make up for it after the next bull market (Warren Buffett is a perfect example for me). A beginner should not, in my opinion, have more than 5-10% of risky assets (I mean, first of all, cryptocurrencies and derivatives such as futures and options) and only on the condition that they expect to lose them completely. Elderly people should rather focus on capital protection and give up on them completely, possibly keeping the symbolic 1-2 percent. Bitcoin or Ethera, because these two cryptocurrencies are considered the safest. Deposits or bonds will be better. Younger market participants have more room for maneuver, provided that they do not invest funds that they may need in a short time. They should not throw all their money into risky assets, as they usually do not have experience with investing yet and if they lose money completely, they will need time to rebuild capital and start over. There is no universal answer to your question, everyone should choose a strategy for themselves, assessing their level of experience and propensity to risk, and above all, educate themselves and invest only what can be lost.
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In my opinion, it is best to stick to one fixed fixed strategy. By changing your strategy, you can quickly make a betting mistake, which can cost you your capital. I set my strategies once a year and then stick to them. If the strategy gave good profits, I also leave it for the next year or possibly slightly modify it. Why get rid of a way that works? It does not make sense. Greetings Tomek
In my opinion, it is best to stick to one fixed fixed strategy. By changing your strategy, you can quickly make a betting mistake, which can cost you your capital. I set my strategies once a year and then stick to them. If the strategy gave good profits, I also leave it for the next year or possibly slightly modify it. Why get rid of a way that works? It does not make sense. Greetings Tomek
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Yes, it is worth regularly analyzing and adjusting your investment strategy over time. Conditions in the financial market can change, so it is important to adjust your strategy to new conditions and circumstances. Sticking to one strategy may not be optimal in the long run, so it is worth being flexible and making investment decisions based on current data and analysis. As a result, regularly adjusting your investment strategy can bring better results than sticking to one strategy for a long period of time. Thanks to
Yes, it is worth regularly analyzing and adjusting your investment strategy over time. Conditions in the financial market can change, so it is important to adjust your strategy to new conditions and circumstances. Sticking to one strategy may not be optimal in the long run, so it is worth being flexible and making investment decisions based on current data and analysis. As a result, regularly adjusting your investment strategy can bring better results than sticking to one strategy for a long period of time. Thanks to
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