Three tools in investment

Three fundamental tools in investment

There are many tools that you need when making decision in investment, professionals opinions, a good trading platform, live news online and so on, but the three true fundamental tools you must have are the followings:

1.     Capital} \

2.     Time  } |----attitude

3.     Insight} /

Capital always come first
There are two types of capital: the Present and the future one. I think no explanation is needed for the present one. While for the future one. They can be salary, dividends, rental income, part-time job or bonus from boss, whatever. The more money you have, the more chance you get. The reason why the rich guys are getting richer, not necessarily because they are really smarter, but they have enough capital to catch a falling knife, or even turn around by going short when noticing something wrong.

Time should be the second.

Some people ask in a forum what can beat time. Although there are many hilarious answers, only one of them is true - Nothing. Sometimes you have to be patient, no matter how correct you think you are in the market in this moment, the trend may take weeks to become obvious. Time also give you capital, information, and most importantly make the task easier. Just ask yourself a question: earn 5% in a month vs 5% in a year, which one is easier?

Insight the third

Some people may click the button of previous page now. What? Why Insight is not the most important?

Some people with good insights doing things with long term plans, they do it accurately and they can wait.

Someone with “good insights” bought ethereum in Jan 2016 without knowing exactly what it was as he was too busy with his company’s project. He just thought it would be fun investing something interesting, win or loss is not so important to him, so as the money he invested. One day in the morning while he was drinking coffee he found out in the newspaper that he earned 1 million dollars.

Some people with “good insights” always moan and groan about why their predictions always come true after they closed their position. “If I have a little more money...this will not happen...”

Insight is important in bringing you to another higher level. But it is never easy to learn. However, if you just want to beat the inflation rate, doing your best in the first and the second tool should be more than enough.

Nevertheless, the three tools are intertwined. Insights give you capital, while capital give you chances (insight) .The article is just trying to prioritize them according to their practicability. Remember, never too focus on upgrading your insight while forget boosting your capital.  

But why the three tools are embraced by attitude? The next article will try to explain.