When it comes to making an investment, if you are not evaluating the potential risks, you are merely gambling. In this video, I want to go over the exact things that I look for before deeming an investment worthy, and I think I’ve actually found the best investment that I’ve made thus far. Without further ado, let’s get straight to the video.
Now, before diving into the video and going over my requirements before doing anything with my own capital, this isn’t financial advice by any means. This is just me speaking through my personal experience. I cannot speak for others, and this is not me telling you guys what to do or how to do it. I’m just telling you exactly what I do and how I do it, and I am not a financial adviser by any means. Welcome if you’re new to cash flow vs investing.
Welcome to the channel, my name is Matt Jimenez, and I am an entrepreneur who has worked with the greatest minds in finance over the last several years. I’m here to pour into you guys everything that they’ve poured into me. In my early stages in entrepreneurship, I was completely infatuated with finance, and investing was one of the things that I believed was going to make me rich. Later did I find out that actually building cash flow in a business that can afford you to make investments was the actual Holy Grail. Not putting the little bit of money you have into an investment hoping to become rich from that. That is the wrong mindset to go around when it comes to investing. I see too many people taking the little bit of change that they have and hoping to buy this one particular thing, and their whole life changes. That will never happen. You need to change your life in order for your life to change, not in hopes an investment will change your life. If that is the case, oftentimes you will end up going broke.
In the early stages, I did find some success, but my mental faculties and character traits were not suitable for the amount of success that I had gained. I had generated over six figures twice in my early stages of investing, but my mind and personality traits were not equipped to sustain that growth. So, you end up donating it all back. This is why you see a lot of people that buy a lottery ticket or, for some reason, had a luck of the draw and end up getting a large sum of money and end up going broke. You need to actually learn the value to steward the amount of money that you will inherit, whether it’s through an investment or luck of the draw. For me, I believe the best way to actually steward money is to learn how to generate the amount that you are worth.
Now, with that being said, through all the trial and error from my early stages of investing, I now have a checklist that I must be able to check off before making an investment. And I want to walk you through the exact playlist that I go through before deciding whether I want to put money into something or if I just want to hold on to the cash for a later opportunity.
How Passive Is the Investment?
The first thing that I look for is how passive the investment that I’m looking at is. Now, mind you, passive investment is a scam. There is no such thing as passive investment. In fact, any single investment that you will make in your life will have some type of labor attached to it, whether it’s the research to find that investment or wiring the money. Bitcoin rainbow chart. There is still some type of action involved in order to make the investment. So, anyone who says passive income is a true thing, no, it’s a fallacy. And in fact, there is no case where there is passive income. Yes, there are situations that are more passive than others, but regardless, there still is a barrier to entry and the amount of labor before or maintaining that investment.
Let’s say you have a real estate property and you have tenants in there. You still have to manage the property and also manage the tenants because a lot of people like to say, “Oh, well, real estate, you just get a couple rental properties and they just pay you every month on rent.” Yeah, but you still had to get the property, deal with the realtor, deal with maintaining the property, deal with keeping the tenants happy. There is tons of management that goes involved in that quote-unquote passive income. So, not even real estate can find passive income.
So, what I really measure here is how much time does an investment require my attention. Now, under the expectations of knowing nothing is passive, you can now gauge your mind towards how passive it could possibly be, meaning how much time is it going to take to manage this investment and steward the investment? Because investments require attention. There’s no such thing as making a purchase or an investment and just walking away forever and being paid forever. But there are things that don’t require much of your time or physical labor.
Now, when I compare that rule to the software that I’m utilizing to trade for me, it checks that box off because it doesn’t take more than 5 minutes of my time to turn on my computer and check how the software is doing and making sure the account is healthy. It is extremely passive considering what amount of work goes into many other investments. It’s no problem for me because most of the time I am utilizing my computer to conduct business. So, while I’m there, I just open up another tab and check on the software. So, to me, it really is no labor. Now, that is the maintenance side of things. Bitcoin rainbow chart. The initial setup for the software did take a little bit of time, about 2 hours, roughly coordinating with the team and helping me set it up. But it really was not hard. It didn’t take more than a Zoom call. So, the software definitely checks off the more passive checklist on my list of requirements before making an investment.
Level of Sovereignty
The second thing I look for in requirements for an investment is the level of sovereignty. I like to have some level of sovereignty over the investment, meaning I want to be able to control the parameters of the investment. And I want to be able to have sovereignty over the amount invested, meaning I want to make sure that it’s liquid and I could have access to my cash without having to go through an extreme amount of work to get my money out. This is super important, and this is one of the biggest things that I’ve learned in the investing world. I’ve been in a couple of situations where getting the money in was far easier than getting the money out. And that is never a position you want to be in when it comes to investing.
Unfortunately, most of the investments have a third-party custodial service that stewards the capital there. And it’s unfortunate that that is the largest barrier of risk when making investments because you want to know how liquid that entity is so they are able to make payouts when needed. Even the most popular investment like Bitcoin, which is known for the level of sovereignty you have with the asset, still has a third-party counter risk. Yes, I know a lot of people store it on a hardware wallet, but still, the on and off ramps are 100% governed by these third-party entities that I’m talking about. You still have to go to an exchange like Binance or Coinbase or whatever it is that you use, and these guys are the third-party counter risk that I’m talking about. So, you always have to take that into account when it comes to the sovereignty of your investment. You still have to deal with the third-party counter risk, which is so far out of our control when it comes to looking at investments. But you could still look for the most reliable ones and do your research. Be extensive when you’re examining these third-party custodial services. Most of them are brokerages and exchanges because those are always going to be the on and off ramps to anything.
Now, when I compare this second requirement to software, it checks that box. The reason being that it checks that box is because you actually have the ability to attach it to pretty much any of the brokerages that deal with the foreign exchange markets. So, it gives you the ability to look for the one that you trust the most and be able to utilize that specific one versus being stuck to a single one that you’re obligated to use. Bitcoin rainbow chart. For instance, I have the software running right now, and I have it under two brokerages at the moment because I like to divide up the money that I have and put it into multiple custodial services rather than having one single line of failure. And luckily, the software is able to do this for me. So now we just checked off two of my requirement boxes with the software.
Next, I look for performance. How well does this asset actually do? I think everybody understands that they always want to know the ROI (return on investment) when it comes to making an investment. In fact, that is the driving factor of why you’re making an investment is because you’re looking to make money most of the time. And I know there are occasions where people are just looking to park money, but when you’re actively looking for an investment, most of the time you are looking for some type of yield.
Now, when I compare performance to the software, it is actually exceptional, and it checks this box off. Let me explain why. Over the last 2 months of actively using the software from November to December, I’m already up almost 10%. The average of that is clearly 5%, but then again, this is only 2 months. I did my research and I connected with many people within the community utilizing the software. And in fact, Nurp has managed to license over 1,500 clients, and from the handful I’ve spoken to, I’ve only heard good things. And I mean that because I am a highly skeptical person, so I like to hear from other people outside of the company who are utilizing it. And amongst the people that I spoke to, all of them are enjoying it and have had amazing returns. In fact, I just had a guy message me on Instagram, and he did 177% last month. I have yet to find someone who has complained about their performance. So far, my profitability is all the way up to 82% in the last 2 months, which is insane. And that 82% is over the span of a thousand documented trades, in fact, a little bit over. So that amount of profitability with the amount that I’ve actually been able to yield is quite impressive. Hopefully, we can keep this up for the remainder of the year, if not even higher. That would definitely be by far one of the best ROIs that I’ve ever experienced when it comes to making an investment.
Then, lastly, I’d like to look at drawdowns and see how volatile the asset typically is. You want to be able to assess the risk and see how volatile swings could be because your margin is at stake whenever you’re making an investment, whether that be real estate, gold, Bitcoin, doesn’t matter. They all have drawdowns. There are days, weeks, and/or months that end on a negative note. And you want to be sure that you have enough margin in the account to where you’re not getting liquidated from these volatile swings. Bitcoin rainbow chart. So, you always want to make sure that you’re assessing the risk and how fast and violent the asset could actually move to the downside because you always want to manage downside potential risk. That is the most important thing that is actually your long longevity when it comes to investing.
And through my experience, when I compare the software to its drawdowns, I haven’t seen anything beyond 1%. And in fact, I’ve actually never closed a month out on a negative note. Every single month that I’ve had the software running, I’ve seen a profit. In fact, I’ve actually never seen a losing week. So, this software definitely checks the box on drawdowns and risk management. For myself, those are the main things that I’m looking for when I’m looking to make an investment. Make sure you could check all of those off your list before making any decision because a rash decision is often followed by a rash consequence. And it’s better to be safe than sorry.
And if you’re interested in the software that I’m speaking about in this video, comparing it to my list of requirements for investments, the link is down below, and you can go ahead and click that link and do your research. Bitcoin rainbow chart. Check out the performance, check out the risks involved, and make sure that you do your due diligence because it can be an extremely powerful tool to add for growth. And if you like this video, please leave a comment, subscribe, and/or like. It means the world. It makes me want to do this more than I already do. Till next time, guys, peace.