It has been a busy time for us as we had to make adjustments to our living situation and daily routine due to a medical issue. It’s not a big deal but is causing some level of inconvenience to our lives. This situation should continue for the remainder of the week and I’m hoping things get better next week. I didn’t have the time to monitor our investments actively but was pleased to see the automated monthly investment plans doing their work. They are using up my cash on a weekly basis as regular capital injections into my investment portfolio. Most of them are still in losses as they were started in the beginning of Sep and stocks have been down since then.
Which led me to an interesting discovery when I logged into our Hodlnaut and Cake DeFi accounts. Our cryptos portfolio held in both of these accounts have seen their values go up since end Sep. The lower the correlation between stocks and cryptos, the better it is in terms of diversification to our investment portfolio. I haven’t been contributing to our cryptos portfolio because of the run-up in prices and my lack of cash. So I’m fine to let it continue earning crypto interest on Hodlnaut through lending and crypto rewards & bonuses on Cake DeFi through staking & liquidity mining (and freezing). This will be equivalent to regular capital injections into my cryptos portfolio anyway.
Photo by Ibrahim Boran on Pexels.com
I’m considering exploring the world of NFTs to increase my risk further to generate higher returns. And I’m also thinking about trading options to generate regular income. I have been reading up on the related information to get a better understanding before I start giving them a try. Again, I will allocate a portion of our investment portfolio to these higher risk components and stick to my asset allocation closely. Maybe start with 1%, then 5% before going to 10% like what I did with my cryptos portfolio on Hodlnaut and Cake DeFi. It’s a slow-moving strategy and I will miss out on what could have been potentially higher gains. I just have to be okay with getting some of the gains.
This is my risk-management strategy to avoid blowing up our investment portfolio. In this day and age, years of discipline and hard work can disappear in days if I can’t properly manage the barrage of information and opportunities that are being thrown at us now. New and hot money-making schemes keep coming up and I have to sieve through all the details to see which ones are worth taking a chance on. It’s time-consuming but allows me to generate higher returns if they work out. Being able to work from home has given me quite a bit of my time back to engage in my personal activities. I still want to work in the office for about 2 days each week to have the social engagement with my colleagues and managers. Building a professional network is even more important for promotions, bonuses, pay rises and new jobs as I get older. I’m looking for just the right mix of working from home and office to increase my personal and professional yield on performance.