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Everything we do is guided by some form of rules. Investment is no different and probably is the one that has more rules we should follow.
Once you start learning cryptocurrencies and investments in general, you hear one things “never invest with money you’re not comfortable losing”. You will only learn the essence of this rule when you mess up and your investment goes sideways.
Do not trade with money you cannot afford to lose, never forget this. When you’re caught between deciding to invest with money that you can use for other purposes, you probably should use the money for that other thing.
I haven’t been in the investment game for long but I have seen how those who neglect this rule tend to be found wanting. I myself have been caught in situations like these once or twice.
First, it has to do with engaging in something I knew was bad. I knew it was bad but why did I invest? I did because during a short time, people I knew made a lot of money and when I started it out with a few dollars, I was making profits. I went out of my way to use my savings for this particular investment and I have regretted that decision ever since.
I have had to use other finances had ticked far away to cover up my mess but the effects of that still looms over my head.
Another time I’ve found myself in this predicament was last year. My friend consulted me about using his school fees to enter a trade. We looked at everything and when I questioned him on how he’ll react when the trade goes sideways, he didn’t give an encouraging answer.
So, naturally I advised him not to trade with his fees since it’ll be difficult to get money to pay his fees later.
Fortunately he listened and the investment platform he intended investing in collapsed 2 days later. If only I had listened to myself with my own investment. But maybe, that experience gave me the courage to give this advice.
Not obeying this rule is what have seen a lot of people become bankrupt. Sometimes, it’s not just a bad investment. You don ’t go around investing or trading with money meant for people or for something important in your life.
I say important and remember a classmate in my high school who used his final exams registration fee to stake bet. He did this and of course, life being life, he didn’t win. I don’t know if this classmate looked for means to get money but he ended up not registering for the exams.
He was bold enough to sit in the examinations hall to participate till through the verification, the teachers realized his names wasn’t captured.
Our IT department was informed and it was pointed out he wasn’t registration. It was from here most of us realized what he had done.
I haven’t heard or seen Gil since then.
So I guess the bottom line is never to spend money or invest with money you cannot afford to lose.
Thank you.
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