“During the pandemic, when I got bored, I started buying stocks and pouring money into crypto, including BTC and DOGE,” begins Bridesmaid for Hire founder Jen Glantz. He states that he hasn’t touched his portfolio since. Glantz shares his story and trading strategies.
“I got the cryptos making the headlines including BTC, DOGE!”
In the middle of 2020 I was bored at home and kept hearing that so many people I know are investing in the stock market and buying different cryptocurrencies. He didn’t know much about either of them. For the first time, I decided to take a pile of cash and become a rookie investor. I opened an account on a commission-free trading platform and deposited thousands of dollars. Later, I bought stocks in companies that I was a consumer of and cryptocurrencies that made headlines from Bitcoin (BTC) to Dogecoin (DOGE). I went on this buying spree for a year. Until I decided that I was being too reckless about my financial investments. Then I wanted to take a break until I had a better understanding of where I was putting my money.
But as we come to the end of 2022, I’m guilty of not doing much about the stocks and cryptocurrencies in my investment account that I’ve bought in the last two years. Because my portfolio has dropped over 46% this year. I wondered what I could do to fix these purchasing decisions affected by the pandemic. I asked financial advisors to share their advice on how to fix mistakes with stocks and cryptocurrencies that I bought and are currently costing me a lot of money.
Investment strategy advice from experts
1. Diversify your investments
When I first started investing in 2020, I made the mistake of buying stocks that were mostly in the same industries. To help offset these losses, certified financial planner Nico Felipe says it may be a good strategy to diversify my investment portfolio by buying a wider range of stocks and other investments to minimize diversifiable risks. “Investing in different assets lessens the impact of any stocks or cryptocurrencies that fall,” he says.
2. Get help if you can’t do it alone
Many mistakes I made as an investor were due to my lack of knowledge of how the market works. Also, I made the mistake of not having a strategy. Instead, I followed the advice of friends who chose stocks by headlines, not research.
If I’m having trouble getting clear on an investment strategy, certified public accountant Kyle Marquardt recommends getting help from a financial advisor. “A financial advisor can help a person understand their options,” Marquardt says. He can also advise them on the best way to move forward.” says. Another benefit is that a financial professional can help me come up with a plan that takes into account my financial goals and current risk tolerance.
3. Take into account potential tax losses
As the year approaches the end of the year, chartered financial analyst Matt Mondoux says it’s a good first step in determining whether a stock or cryptocurrency is holding on to an unrealized loss. If so, he states that selling the position will allow the account holder to accept a tax loss. It also says that up to $3,000 in tax losses can be used to offset income in any given year. Amounts greater than $3,000 can be used to offset earnings for the current calendar year. Or there is the possibility to carry it forward for use in future years.
However, there are some additional rules about this. For example, the investor must not repurchase a sold security for 31 days in any account he manages to avoid a sale. If you are investigating the tax implications of your investments, consult a tax professional for details about your particular situation.
4. Don’t get attached to what you have
I’m confused as to what to do about crypto positions like DOGE that I’ve had for over a year. Also, I was afraid to make new investments. Certified financial planner Jeff Bernier says a good way to get around this mindset is to learn from what I did during the pandemic and use it as a way to continue to create a new plan for the future.
To do this, ask yourself what your future goals are. Also, determine how much return you want to see in your next investment plan. Finally, decide which mix of asset classes has expected returns to meet these goals.
If you feel bad about selling stocks or cryptocurrencies for less than you paid for, Bernier suggests remembering that securities don’t care what you pay for them. Knowing what you know now, if you had as much cash as these securities, would you buy them today? If the answer is ‘no’, consider selling them now,’ she says.
Finally, Bernier recommends focusing on the parts of your financial portfolio over which you have more control. It also says to ignore things you can’t control, such as the market, economy, or the Federal Reserve. That way, it’s possible to get back on your way.