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In separating reality from fantasy the actuality is that the higher the pay the higher the expenses goes,
I don't see how expenses are higher merely because income goes up. There are ways to earn higher income without expenses going up.
Of course, if you are referring to a business, then that is different from if you might be earning an income from another source, like a job... so then if your income goes up, then you are choosing the extent to which you increase your expenses.
and to have that he financial security with all that promotions it has to be with a multiple income streams.
You also don't need to increase income streams if you land jobs or professions in which the pay is high relative to your expenses.
Let's say that a guy had been doing various random kinds of work and earning around $20k to $30k per year depending on the kinds of jobs that he would land, and maybe he was studying at the same time and interning to do some kinds of high pay work, but he was not necessarily getting paid for his internship. So maybe he was working around 30 hours per week, yet with his studies and his internship time, we was doing another 40-ish hours per week.,. so he had a pretty full schedule. Then perhaps suddenly he gets offered a paid position that started out at $80k per year, and then it has various schedules for promotion that might go to $120k in the second year and then maybe $150k or more.. Maybe he would have to start working in the promoted position at around 60 hours per week, but since the position has vacation pay and various benefits, he is expecting that after a few years he would be working between 40 and 50 yours per week... yet in order to get that higher pay position, he had to give up his various side works.
Sure the facts could vary, yet there are a lot of situations where the expenses might not go up with income (not to a meaningful level) and that the number of hours and/or the kinds or extra streams of income might not be feasible, practical and/or even a good use of time, energy and/or money.
And for young people it can be easily done cause they still have the much energy.
Young people have a lot of energy and they can also have potentials to get into career tracks that are much higher pay if they seem moldable and potentially a good fit for certain kinds of positions, whether it is knowledge of the field or ability to get along with various coworkers and/or liked by higher ups.
And maybe we don't need to talk about going from $20k per year to $150k per year, since there are variations in the middle, and sometimes there might not be needs to work more jobs or to increase expenses merely because of getting into a higher paid position and/or a position that might have higher promotion potential.. so guys might sometimes work in a variety of unpaid ways in order to try to get promoted, whether he had already gotten into a good slot or if he might still be figuring out ways to get himself into a better career path. Sometimes guys can get themselves specialized in a certain kind of work that ends up limiting their upside potential and may well keep them working harder and longer and perhaps with less pay... and we likely realize that if there are ways to increase pay and not necessarily increasing expenses (except perhaps just increasing expenses related to the promoted position.. nicer clothes or nicer car to create the right impression yet there might still be limitations in regards to how extravagant a person might need to be or want to be in order to "fit in" to the higher paying position or career slot.)
Surely, sometimes guys can lose their chances of changing slots if they are pigeon-holed into certain kinds of work, even though sometimes even older folks, let's say in their 30s or 40s will sometimes change careers or perhaps start to take classes or perhaps do some free internships where they put themselves into their target profession, even if they might not get paid for that time and it might cost them time, money and energy to make efforts to try to cross train (and/or to change professions).. and not everyone is successful in their efforts to change professions, so they may well be running risks when they go down those paths to attempt to change their career paths and they might not even have some of the skills and/or connections to be able to successfully change.. which can be an age factor but it can also be a factor of how much you might have to build certain kinds of skills that might be expected within a certain age range that you may or may not continue to be realistically eligible for such a change.
The notion that DCA weekly always implies buying every dip is unrealistic as Bitcoin does not provide a clear cut dip every week. The fact that DCA eliminates the strain of having to time the market is what makes it work so effectively, you can buy at any given time so long as you have the money on hand. Waiting to see a perfect dip can also result in indecisiveness and missing chances particularly when the bull is on a strong run where the dips can be either slight or few. It is much better to have a steady purchasing pattern than to attempt to estimate immediate fluctuations. When a true dip happens and you have additional prudent money, it is good to take the opportunity but the gist of the DCA is consistent building up rather than ideal timing.
DCA does not mean buying when the price goes down, but rather it is a regular purchase that we make regardless of whether the price goes up or down. Some people may buy more when prices drop deeper, like me for example. I usually set aside certain funds to use in situations like this.
What I focus on in doing DCA is trying to be consistent with it. That's usually a challenge, because sometimes we feel like buying something that we can enjoy right away. But trust me, when we refrain from fulfilling our desires and prefer to invest, then we will be able to enjoy more of it in the future.
Of course, a pure form of DCA is price agnostic, yet if DCA is combined with buying on the dip, it is no longer pure DCA, yet it can be an acceptable way to supplement DCA with some variation of buying on the dip.
There is nothing wrong with supplementing strategies as long as the trade offs are mostly understood.. so for example, a person could aggressively DCA using $100 per week and buying bitcoin no matter what with such a practice for 4 years or longer, and maybe even increasing such DCA amount every time that a raise in income happens and/or if some extra funds come in, then similar increases go into the weekly DCA at the times that the extra funds come in.
Such same person could purposefully choose to only invest 80% of his target DCA amount, and to save the other 20% for buying on dips or for increasing his DCA amounts during dip periods. There is a trade off in regards to holding back some of the value, yet each person can account for such trade offs in order to figure out how he might feel more comfortable to either follow a strict DCA or to potentially have some kind of DCA style that supplements with some amount of the authorized DCA amount going into funds that would be held back in oder to use those for future buying the dip possibilities that may or may not end up happening.
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And it takes more than just having money to invest also, having a plan for when to buy and when to sell is a good initiative before starting your investment.
It is misleading to suggest that you need to have a plans for buying and/or selling before you even start your bitcoin investment.
Likely beginner investors need to come into bitcoin and just buy at any time and any price for 4-10 years or more. Of course the more bitcoin that they accumulate, then they might make adjustments to their bitcoin accumulation practices, yet those plans do not need to be in place prior to getting started.
The same is true for selling. A person could come to bitcoin and tentatively plan that he is ONLY going to be accumulating for 4-10 years or longer, and then he can work out his selling plans at some later point in time.
Traders frequently proclaim that there is a need to figure out when to get in and when to get out, yet since we are talking about bitcoin, we don't need to get trapped into such short and narrow thinking.. .. I think another idea with investment, might be that a person is investing as much as he is willing to lose, so that he ends up having a mental framework that whatever he puts into bitcoin, he is willing to let it ride to zero, if that were the case.
Sure, not everyone who comes into bitcoin thinks about bitcoin in that kind of a way, yet there still can be those kinds of long term commitment in place.. that might well emphasize ongoing buying and not selling and even surely, each individuals can create their particulars, but they don't really need to have had established exact specifics in regards to when to buy and when to sell.. except as I already outlined which is that beginners would likely come into bitcoin with a general perception that buying is ongoing until reaching higher amounts of bitcoin that might inform whether it would be justified to slow down in the accumulation, and selling is pretty much a non-issue.. except maybe spend and replace.
Don't get me wrong. I do think that guys should always try to assure that they have ways to both buy and sell, even if they would not be exercising the selling aspect beyond spend and replace and perhaps just assuring (from time to time) that the selling part functions.
In my opinion, using the DCA method isn't exactly classic trading. It's more like investing in Bitcoin. Admittedly, this method has produced excellent results in the past. 🙋
Will this method be as effective in the future as it was in the past? I don't know. When I (previously, in the past) read opinions on various forums about Bitcoin being a scam and a bubble (that has already burst), that its price would never rise again but would only fall, this made me optimistic! 🪇
Yes. DCA is a method that is ongoingly building the bitcoin size and allows for a tailorizing of the amount that is invested on a regular basis (such as weekly) to the persons cashflow and psychological situation.
Investing in bitcoin or anything (including the use of DCA) there should be a presumption that the price is more likely to rise rather than fall, including considering the ongoing debasement of the dollar and/or other fiat, so that there would ultimately be real returns, not just nominal returns and perhaps a bit of a presumption that it would be better to put time, money and energy in bitcoin as compared with other places that the money could be put, yet surely guys can come to different opinions in regards to how much they want to put into bitcoin as compared with other places that they could put time, money and energies.
Of course, past performance does not guarantee future results, and it is likely that bitcoin remains amongst the best of places to put time, energy and value even though it is likely that even in the better of scenarios, the slope of bitcoin's price curve is not going to be able to be as steep as it has been historically, even though there still remains quite a large addressable market for bitcoin to still have quite a bit of upside, whether other folks recognize such possibilities or not.
When most market participants are betting on a Bitcoin price decline and actively trading, I understand that a Bitcoin price rise is just around the corner. Now things are different... I get the impression (possibly false) that most market participants want to invest in Bitcoin. Everyone talks about building reserves, investing, and the Direct Cost Averaging (DCA) strategy.
It is not "direct" cost averaging. it is either "dollar" cost averaging or "daily" cost averaging.. not "direct" cost averaging. "Direct" makes little sense, even though it is likely better to directly own bitcoin rather than owing a derivative or having your bitcoin held by a third party.
I read about this and start to worry a little... Where have the short sellers gone? What if we're in for a massive bear market, perhaps the longest in Bitcoin's history?
Of course, whenever you are worried, you can adjust your position size, which would be the amount that you continue to buy or even to shave your position, yet I consider this to be a thread about investing and not trading. .. so when we start to go down the road of getting scared and thinking that there might be some better opportunities to buy back in the future, then we can easily devolve into trading nonsense rather than investing ideas.
One of the ways that investors might deal with such possibilities of lower prices in the future would either be to continue to buy or to adjust their buy amounts to be able to take advantage of the lower prices by saving some money for those prices, and it surely becomes problematic to be changing behaviors for dips that might not happen, so guys can figure out ways to prepare for either price direction, and part of the rationale would relate to a guys already existing stash and other aspects of
his personal specifics.Such thoughts never even crossed my mind before.
There are frequently periods in which sentiments change, and I doubt that sentiments are very helpful to account for figuring out your own bitcoin investment strategy. And, of course, anyone could get influenced, and even you have a bit more than 2 cycles (or years), so it could be the case that you are no longer in your accumulation phase.. so there can be some dilemmas when guys are transitioning between their accumulation phase and into their maintenance phase and into a phase in which they might start to feel that it might be productive for them to start to get into some kind of a sustainable withdrawal...
Yet, no one should really want to start sustainable withdrawal practices if the BTC price is going down rather than when it is going up or at least just sideways.
Now I can't shake them. When there are no bearish traders in the market, when there are no traders willing to short an asset, the outlook for that asset, in my opinion, becomes quite bleak. 🤷 Perhaps I'm wrong, and things aren't as I see them. Maybe I'm just a pessimist...
You seem pessimistic, yet you likely have to consider whether you are still in your bitcoin accumulation phase or not.
If you had been accumulating bitcoin at a more or less steady pace since August 2017, then you likely would have an average cost per BTC that would be around $13k per coin, so you would be in a decently good position to have some flexibility in regards to what you do and how you deal with matters, yet at the same time, so frequently I have found that the more important measure in regards to the status of the BTC holdings of any person relates to how much BTC they were able to accumulate (relative to their income and their standard of living) rather than the extent to which they had kept their BTC costs sufficiently low enough.
So if you happen to be a person who had been investing around $100 per week and you were wanting to get to a point of being able to have a $80k per year income off of your BTC, then
right now you would ONLY have in the ballpark of 3.2 BTC accumulated and around $42k invested, so from 3.2 BTC you could ONLY get around an $18k per year sustainable income, yet if you were to keep accumulating around the same rate, then
maybe by 2030-ish you would get to 3.5 BTC or more and you likely would be able to start to withdraw at around an $80k per year sustainable rate... so yeah, none of these matters are guaranteed, and you would have to figure out what to do based on your own current conditions, based on what you had done to date and based on what you might want to do into the future... yet anyone who had been steadily accumulating bitcoin over the past 8-ish years would have had likely put himself into a decently good position, and the more aggressive his historical accumulation, then the better position he would find himself in right now.
Actually, to me, you are sounding pessimistic based on a likelihood that you have not been historically aggressively accumulating bitcoin, and so you seem inclined to continue to make the same mistake by fucking around with failing/refusing to continue to accumulate bitcoin. Of course, right now if you had been historically aggressively accumulating bitcoin, then you would have more options to potentially slow down in the aggressiveness of your accumulation and just let the clock run, and perhaps prepare to buy on dips if they happen or maybe to just continue with regular accumulation... Many options have come from bitcoin, yet you would have had needed to act in the past, and if you did not act in the past, I doubt that the solution is to become whimpy and pessimistic now, even though each of us is free to approach these matters from our own ideas regarding the better path forward for ourselves.
In my opinion, using the DCA method isn't exactly classic trading. It's more like investing in Bitcoin. Admittedly, this method has produced excellent results in the past. 🙋
Will this method be as effective in the future as it was in the past? I don't know. When I (previously, in the past) read opinions on various forums about Bitcoin being a scam and a bubble (that has already burst), that its price would never rise again but would only fall, this made me optimistic! 🪇
When most market participants are betting on a Bitcoin price decline and actively trading, I understand that a Bitcoin price rise is just around the corner. Now things are different... I get the impression (possibly false) that most market participants want to invest in Bitcoin. Everyone talks about building reserves, investing, and the Direct Cost Averaging (DCA) strategy. I read about this and start to worry a little... Where have the short sellers gone? What if we're in for a massive bear market, perhaps the longest in Bitcoin's history? Such thoughts never even crossed my mind before. Now I can't shake them. When there are no bearish traders in the market, when there are no traders willing to short an asset, the outlook for that asset, in my opinion, becomes quite bleak. 🤷 Perhaps I'm wrong, and things aren't as I see them. Maybe I'm just a pessimist...
I still think that this DCA strategy will remain relevant in. the future, although I also don't know whether there might be a more effective strategy in the future or not. But for now, I still have great confidence in this strategy. I also won't rule out the possibility of changes in the future that may be very different from the present. However, I don't think I should dwell too much on that, because what's most important is that I can do my best now to reap the benefits of what I'm planting today.
What are you doing today, maknyos? Are you continuing to buy bitcoin or are you doing something else?
You have been registered here for a year longer than Smartprofit so you had a year longer to accumulate bitcoin, yet sure I know that many folks make mistakes and they come to reform their ways later down the road... and it can sometimes take time to both develop good (and better) practices and to put those practices into a kind of ongoing repetition of action that may well involve ongoing buying of bitcoin and otherwise shoring up cashflow management systems/practices.
