Hover over the player to change the speed and other settings or to download episode

Alright guys, Derek Soto, we're gonna talk about a little business action today. And I really wanted to cover the investment side of things, when it comes to stocks and, and cryptocurrencies and all this. And I just want to make it clear that none of this is investing advice whatsoever, but just my own personal opinion and observations. 

But I think that they hold true from people that are in the know and how they approach it versus how some random person approaches. Rule number one is when you look at investing, whether it is through stocks, or whether it is through cryptocurrencies, what you want to do is invest in companies and projects that will have longevity. 

And that requires to do two things, some technical analysis, and fundamental analysis, okay, and there's tools that will help you to do that, you got to look at the utility of what you're investing in, you have to look at the company, and you have to look at the founders, and you have to look at their track records, and you have to look at a lot of data, okay. 

And then the hardest thing of all, is that if you actually want to have a chance, at making money at these things, you have to buy something and hang on to it often for several years. Okay. 

And don't open up your, you know, trading view, if you're doing crypto or your portfolio, if you're doing stocks and check it every day and get freaked out by the bouncing of the markets, that's just gonna drive you mad. 

And only invest what you're willing to lose. But at the end of the day, like, the best way from spending a lot of time looking at this stuff, the best way to do this, in instead of trying to get rich quick and day trade and all this other stuff, is to actually just find solid companies and solid projects that would have utility in the, you know, for stocks. 

Solid companies that over time will disrupt a market, or you believe will make a huge splash in the market or disrupted. And the other thing, like, you know, for Amazon, for example, that didn't make money for a very, very, very long time. And people that got and just held and didn't sit there and look at returns for years. Now they're doing great. 

The same they happen and you have to apply the same principles into crypto as well, where if you want to make money with it, the best strategy is to find coins, if you will, that are useful, you know, that projects that will actually help push forward initiatives that will be game changers, like defy or decentralized finance and stuff like that, and projects that support those projects. Okay? And

so if if you're not willing to do you know, the 10s of 1000s of hours of analysis, and it could be wrong anyway, just keep that in mind like you can not know the future, no matter how many graphs and charts you look at. Even seasoned pros will have losses. And so how you win is by time. So you do a lot of analysis, a lot of work, finding companies that you believe in or finding projects you believe in. 

And you invest for the long term. Okay. And then just dollar cost average in and out and take profits when you can. And so dollar cost averaging is putting money in slowly. So something is, if you feel like something's gonna go up, you buy a little bit, it goes up, you buy a little bit goes up by a little bit. 

And at a point, you set a point where you say, Okay, I'm going to take some profits, okay? And say you put 1000 in, and then it grows to 1200, for example. You know, you can go ahead and take that 200. And, you know, I'm not saying to do that, but this as an example, put 1000 in and it goes to 1200, in the crypto space that can happen in a day, you take that 200 and put it aside. 

And the end, I would say that the main goal is to make it so that you get back that initial investment, okay, whether it's 1000 or 10,000. Anytime you can take profits, you take it back until you get back your initial investment. And once you have accumulated enough profits that equal your initial investment, now you're playing what what they call house money. 

Because you've already earned back your initial investment. So you can afford to totally lose. They won't even bother you, it won't bother you. But if you lost your house money, you're like, that's fine. Because I got I took profits back to get my initial investment. Okay. But what I really want you to think about the key term here is long term. 

So it's not opening trade me up every day and saying, Okay, let me look at these dips and these spikes and see if I can game the system, you can't do this, most people can't do this. I'm not saying you can't do but most people can't. And the people that are very good at it and do this all day long. 

If you want to play in that in those waters, you might want to interest, you know, do a lot of research, and join a fund and have someone have a fun manage your money for you. And you have to look through and have a lawyer look through all of the information in the contracts, because there's usually a lot of hidden fees and things that will eat into your profits. 

If you enjoy an investment fund or whatever. You may find that in 20 years, a 1% fee could equal a lot of those profits eaten out of your gains. Just because of that 1% fee doesn't sound like much but at the end, so think long term with these things. Your main sources, the best main source of income, in my opinion, is running your own business and creating your own value. 

This is something you can more rely is much more reliable. Something that you can actually make money faster on but you need to do the work. Okay. And so there really is. For every story you hear of people getting, making a million dollars overnight or making 10s of 1000s of dollars a day and also stuff these are outliers. For every story like that there's 1000s of people that have lost their shirt, okay.

And so at the end of the day, the smartest thing from what I've seen from people that are experienced talk about is you have to think of these things in the long term. Like if you look for Example of people that bought Amazon early people that bought apple, early people that bought Microsoft early is held on for 10 years. 

Okay, people that bought Bitcoin and held it for 10 years, people that bought you know, any of these things early and just hung on to them and didn't worry about the swings, okay, this will save you anxiety, worry. Okay. And so say you're you're working and make sure you have a source of income. Okay? 

This shouldn't be your job is trading unless you're doing it full time and you're just knee deep in your analysis, and you have a deep understanding, and I wouldn't quit your job until you're able to reliably replace your income with your skills to be able to trade ethically. And there are people that have those skills, but they are hard won, and they take a long time to learn and master. 

And the thing is, is that you're entering a volatile space, that's a glorified lottery, glorified gamble in you know, system, okay? And so the least riskiest thing is to bet on yourself. And to make a business that creates value for people that creates a product or service that people want. So it is prudent to take your excess, any excess money that you have, letting it sit in a bank account is not great. 

One thing you can do is put it in a stable coin, and then just stake it and get, like 12%. As of now, that's the going rate for that, which can help to be hedged against in, in inflation, with the spending power of the dollar going down. But just remember, keep the the term long term in mind. And understand the people that actually do make money at these things. 

They have patience, okay. And they, they buy something, they hang on to it. Okay, in the crypto space, it's called Hodling. Okay. And so, at the end of the day, what you want to do, whether it's stocks or whether it's, you know, crypto, hanging on buying something early and hang on for the long term, is where people see success, and see must have patience, and not look at it as a get rich quick scheme. 

Okay. The fastest way that I've seen any people get rich is by working at a business and then scaling that business. Okay. That's it, like, so just please keep that in mind as you're looking at the different options of how you're handling your money. Okay, very important. And for. For your own personal sake, if you're dealing with crypto, make sure to get into a project that's at least in the top 10 to start with. 

Okay, they called alt coins, anything that's under Bitcoin at this time of the recording, okay. And so whether it's Bitcoin or the top 10, coins, or whatever it is, like Cardano, things like that theory and all that stuff. Just understand that the real value is seen in buying and holding, and not trying to game the system, you can't call the market you can't. 

And what I mean by that is you can't time the market, you can't know no matter how good you are, you can't know with certainty when things are going to pump or when they're going to fall for a while. And you don't know when that recovery period will be which means when it will go back up. Or the correction of that goes down and then it corrects to

a more realistic valuation of that project or company. So I recommend that having the mindset of I'm going to buy this thing and not look at it for a few years. Could be a good idea. If you don't have a experience in this, you definitely want to talk to some people that do have experience in it and have been doing it for years. 

And, you know, look for people that invest for the long term, don't listen to people that tell you can make $100,000 In a few months. And also, that's a very dangerous thing. 

But I think the best thing to do is to listen to very reasonable people who invest for the long term, because you have to understand time flies by, if you look back at the last 10 years, if you had gotten in Bitcoin at last 10 years, and you got a reasonable number of coins, you would be sitting very pretty right now. 

And just like with certain stocks, as well. But most people that succeed in these spaces in the investment spaces, you have to practice, one of the biggest things is patience. Okay, and understand, have the mind frame of, I'm not going to get rich overnight. It's a waiting game, it is a years long play that you're doing. Okay? 

Look at it as like a chess game, it takes time, it takes thought and care. Okay, if you know nothing about this, I wouldn't just pick rec companies at random and throw money at them. And again, only use money are willing to lose, but at the end of the day, for a chance to for it to grow. 

Because I think it's good to invest in companies that are providing value to people and projects that are providing value or will are working toward providing value to people. So at the end of the day, I guess when I can just say think long term, and you are going to be well above everybody else. 

And your life will be easier. And it will be easier to do this. All right, and especially you know, if you have a job or business, and that's it Paramount is to have a source of income, do not let these investments be your source of income. Okay, look at it more like a side hustle of like, okay, instead of parking your money in a bank account. 

Which earns basically almost nothing for interest, and definitely actually loses you money with inflation. Parking your money in something that actually will grow is important. But talk to professionals about it. Talk to professionals in both stock space and the crypto space who have a long term investment mindset. 

Okay, not short term, long term, okay? And just ignore, and this is going to be hard, but ignore a lot of the YouTube channels and other places that push this, you know, 1000 time return and, you know, on your, you know, on all coins, if you're dealing with crypto and stuff like that, just just kind of ignore that stuff. 

You want to invest into projects that are almost necessary in their space, and not almost necessary but are necessary in the space. And look at companies that are actually doing things and following through on their milestones and promises. And if you can't do that research, find people that can. 

And, you know, people say do your own research, do your own research, sometimes. It takes a long time. It's a huge learning curve to do your own research. So you can do your own research by researching and finding people that have that mindset of long term, patience driven investing, and learn from them. 

And you'll still have to make your own decisions as they will not share their secrets with you as an investing most of the time. 

Okay, so your best chance from what I've seen against my own personal opinion, but from what I've seen that your best chance at getting gains is to invest for the long term okay all right God bless

copyright©2022secretmarketingpodcast.com | contact | privacy policy | terms of service | earnings and income disclaimer | cookie policy