Financial decision-making: Using smart-analytics

cointelegraph.com:

Making financial decisions can be a daunting task, especially if you’re just starting out, but the same applies to even the most experienced. The simple answer is: You can’t auto-pilot investing and expect to profit.

One way, however, that is changing the game for investors in particular is the availability of smart analytics, which gives indicators and data on all kinds of motives, allowing investors to make more informed decisions about their financial future.

It is important to know that there are different types of investors, but the majority of investors have no real plan due to a lack of understanding of the financial scene. They essentially gamble instead of investing.

One of the fundamental factors in financial decision-making is an individual’s risk tolerance. Traditional investors often opt for low-risk assets like bonds or diversified stock portfolios, while crypto enthusiasts may embrace the higher volatility of digital currencies.

The most common method of investing is setting aside a small sum, typically each month, and you invest in your chosen areas. Strategically, this is basic and with no real intent but can be profitable.

Next is lump sum investing (LSI), which is simply investing a large amount of funds into the market instead of gradually with the idea that the timing or price is right. Now, while this can pay off, it can also hurt the investor, as you are risking that the current price is ideal which in turn could also significantly drop, potentially causing profit issues.

Alternatively, you could use a method called dollar cost averaging (DCA). This is where you take previous price action and buy around a price you feel increases your chances of making more profits.

In short, you accumulate as cheaply as