module 5
When to Invest in Stocks & Crypto
Once you’re on the path to financial freedom, you can experiment with Stocks & Cryptocurrencies. Choosing killer stocks is hard but there are a few ways to do it safely. We’ll discuss the business magnate Warren Buffet’s method of ‘Value Investing’ and how you can do it yourself. Finally, we’ll cover the brief history of cryptocurrencies, where it’s headed and how much of your portfolio allocation should go towards it.
module summary
There is no single right way to choose the right stock, and the best approach will depend on your individual investment goals and risk tolerance. However, there are some general guidelines that you can follow to help you make informed investment decisions. This can involve looking at the company's financial performance, analyzing its competitive landscape, and considering its growth potential and future prospects. It's important to have a long-term investment horizon and not get caught up in short-term market fluctuations.
Value investing is an investment strategy where the investor looks for stocks that are trading for less than their intrinsic value. This means that the investor believes that the stock is undervalued by the market and has the potential to generate a higher return on investment. Value investors typically look for stocks that are out of favour with the market and are trading at a discount to their fundamental value. This approach can potentially lead to higher returns, but it also carries a higher level of risk and requires a significant amount of research and analysis.
Cryptocurrencies are a relatively new and highly volatile asset class, and they can be risky to invest in. Unlike traditional currencies, which are backed by governments and central banks, cryptocurrencies are decentralized and not backed by any authority. This means that their value is largely determined by supply and demand on the market, and they can be subject to significant fluctuations in value. As a result, investing in cryptocurrencies can carry a high level of risk, and it's important to carefully consider the potential risks and rewards before making any investment decisions.
