Financial Education: You Do Not Have To Be In The Market

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(Edited)

▶️ Watch on 3Speak


As part of our continuing financial education series, we discuss the idea that you do not have to be in the market.

When people start investing, they feel they have to be invested all the time. After all, according to some, "cash is trash".

In this video I discuss how the choice is up to each of us when we enter and exit the market. And, if something is amiss within us, we do not have to be involved. Going to cash is not a bad option in times of uncertainty.


▶️ 3Speak



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Are tether or other stable coins considered cash ? :) or will they be once you can buy common stuff with them ?

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I would say if someone is investing in crypto, certainly that would be considered cash although there is a bit more risk no matter how slight. We are presuming the peg will hold.

However, cash is considered a "parking spot" and I would say stable coins serve that role for those involved in crypto. Dont feel comfy with BTC or some other token, go to Tether and chill.

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Actually Cash is a position no matter where you are (crypto or stocks). I don't mind taking chips off the table so I can reload at a lower price and it has saved me quite a bit. You want to enter the best trades so moving a little bit off so you can take them is a good thing.

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Summary:
In this video, the speaker emphasizes the importance of understanding that one does not have to be actively in the market all the time. He discusses the power individuals have in deciding when to invest and when to stay on the sidelines, highlighting the significance of personal comfort and psychological well-being in financial decision-making. He stresses the idea of being in control of one's investment choices and the responsibility that comes with it. The speaker also touches on the concept of missing out on opportunities and the importance of conducting thorough research and due diligence before investing in any asset class. He underlines the psychological aspect of investing and how learning and self-control can lead to better investment outcomes.

Detailed Article:
The speaker begins by challenging the commonly held notion that one must always be actively participating in the market. He emphasizes the autonomy individuals have in deciding when to enter or exit the market, underlining the importance of comfort and psychological well-being in making financial decisions. The speaker mentions Ray Dalio's view on cash not being trash and encourages listeners to recognize their power to choose when to invest. He reiterates the significance of personal comfort and mental well-being, suggesting that if something is bothering an individual, it is acceptable to withdraw from the market, regroup, and wait until comfortable again.

Moreover, the speaker discusses the impact of fear, greed, and intuition on investment decisions, emphasizing that during tough times or uncertainty, it might be best to refrain from extensive investing or moving funds around. He advises against the common misconception that one must always be fully invested, criticizing the belief that frequent trading and chasing after different sectors is necessary for success. The speaker highlights that many professionals engage in frequent trading out of obligation rather than generating desirable returns.

Furthermore, the speaker delves into the aspect of personal responsibility in investing, stressing that individuals are accountable for their decisions and outcomes. He discusses the importance of research, due diligence, and understanding different asset classes like stocks, cryptocurrencies, and commodities before making investment choices. The speaker argues against the notion of missing out on opportunities, emphasizing that once a decision is made to exit an investment, one should not dwell on potential gains from staying invested.

Additionally, the speaker addresses the psychological aspect of investing, suggesting that learning, self-control, and understanding oneself can lead to better financial outcomes. He emphasizes the need for investors to take responsibility for their choices and outcomes, stating that blaming external factors or tips from others is counterproductive. The speaker concludes by reiterating that individuals have the ultimate say in their investment decisions and encourages listeners to prioritize personal ownership and control over their finances.

Overall, the video provides valuable insights into the importance of self-awareness, psychological well-being, and personal responsibility in making sound investment decisions. The speaker's emphasis on autonomy, research, and understanding one's comfort level contributes to a comprehensive discussion on effective investment practices.

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