Good research is important and aids investment decision making. Will you be investing in cryptocurrency or stocks, real estate or bonds? These and more are some of the questions we answer when we Do Our Own Research.

Everyone who wishes to be invested whether a long-term investor, a trader or professional career person should be able to do meaningful research. To Do Your Own Research does not require a lot of technical know how as will be shown shortly.We hope you considered making adequate research before your first investment.

THE NEED FOR DYOR

RISK MANAGEMENT: We cannot employ capital in the absence of risk. As a farmer, you risk pest infestation and disease out break once you plant; as an industrial worker, you risk hazardous accidents that can cause loss; while as investors, we risk the loss of our money. An adequate risk management makes for success as we cannot isolate risk.

CAPITAL ALLOCATION: Do you intend to get in once or in bits ( dollar cost averaging); will you prefer leveraged investment to spot holding? Adequate investment research can help us maximize our capital and returns on investments.

PSYCHOLOGICAL STABILITY: Confidence often comes from knowledge; the knowledge that we are not over leveraged, ignorantly risking our money, and following our investment plan. This gives room for us to enjoy peace while creating generational wealth through sound investment.

Like a tripod stand, investment research has its legs as Fundamental, Technical or Sentimental Analysis. The better we say is none as they complement each other.

FUNDAMENTAL ANALYSIS: Here the investors look at macro economic data - GDP, Political stability and Security, Monetary and Fiscal Policy e.g Interest rates. The effect of this can be seen in the financial market reaction to the war in Europe in 2022; Federal Reserve`s Interest Rates policy and others. In summary, the Fundamentals tells investors what or where to be invested in.

TECHNICAL ANALYSIS: In technical analysis, investors read historical price data in charts and reach investment decisions. It employs tools like chart patterns, candlesticks patterns, support and resistance as well as technical indicators to arrive at sound investment decisions. While the fundamental can tell on broad scale, what and where to be invested; the technical can tell Savvy Investors when to be invested .

SENTIMENTAL ANALYSIS: As rightly put by George R.R Martin, "A sword is only as good as the man who wields it"; our sentiments and personality greatly influence our decision from Fundamental and Technical Data. Will you buy at a breakout or retest; are you patient enough for two years holding; and have you the discipline to follow your plans ? Good personality traits such as discipline, patience and flexibility in bias can help one see different information in the market.

An in depth understanding and application of the three research technique helps us to be Savvy Investors and balanced like a tripod. The more legs we lose, the more difficulty we may have.

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You can read our previous market update here: https://www.binance.com/en/feed/post/200222