I tend to recommend against all of those, while at the same time suggesting that if guys cannot help themselves in their temptations to trade, gamble and/or shitcoin, then perhaps they should limit their trading/gambling/shitcoining to no more than 10% the size of their total bitcoin time, energies and value.
Yes.. I understand that gamblers have difficulties controlling themselves, but you never know, there could be some guys who are able to transition successfully from their gambling habits (and practices) and into habits of investing. Sometimes miracles can happen (with some efforts and perhaps guidelines?).
Some might feels like a trader will always want to act like a trader, by trading anytime he feels like he can outsmart the market, but the truth is that some of these traders do listen, even though they may not admit it openly. I will use myself as an example because I have been trading the derivative market long before I knew of this forum, or a proper way to invest in Bitcoin. But during my stay here I have come to understand that trading is more stressful and less productive than Bitcoin investment that is more productive and less stressful, and it's because of that I focus more on accumulating and building my Bitcoin stash weekly, and even when that urge to trade comes sometimes ,
I don't see the need to risk more than 10% of my discretionary income because I now sees it like am just trying to take a gamble, but the main reason am saying all this is to make it clear that most of these traders that are focusing more on trading, than investing in Bitcoin are largely doing so because they are not familiar with Bitcoin investment or they are only doing it because of the quest to make quick money, but the moment they are exposed to both and sees how productive investment in Bitcoin is, majority of these traders will definitely give more attention to Bitcoin investment than trading that is of higher risk and less productive, since you can't avoid losing, even though you are a veteran trader.
10% of your discretionary income is quite a bit higher than 10% of your bitcoin investment.. and sure, you can measure it yourself. Your discretionary income is for 1) investing, 2) saving and/or 3) discretionarily consuming.
Now a person who is getting into investing into bitcoin, he might already have some trading activities (and a trading budget in place), so such a person might feel quite stressed if he feels that he might have to cut down on his already existing trading budget in order to give higher priorities to both bitcoin investing and making sure that his various back up funds are sufficient enough to protect his bitcoin. So there surely can be some variation in how guys might transition from trading into investing and especially prioritizing the bitcoin investing angle.. so they might not get to their trading proportion being 10% of their bitcoin holdings for some time, but that is up to them in regards to how quickly to transition from trading and into prioritizing bitcoin investing.
By the way, several times I contemplate how traders might cheat in their own determinations of allocations, so for example, if they allocate 90% to bitcoin and 10% to trading (and fucking around with shitcoins, or whatever), and then if they ongoingly lose money in their trading allocation, but then they reallocate from bitcoin from time to time and then end up ongoingly depleting their bitcoin, and so yeah, there can be ways that traders deceive themselves into allocating more to trading than what would be prudent and/or reasonable and then having consequences of ongoingly short-changing and/or depleting their bitcoin while at the same time rationalizing their behaviors by proclaiming that they are fucking around within shitcoins within something like a 10% limitation.
~snip~I tend to recommend against all of those, while at the same time suggesting that if guys cannot help themselves in their temptations to trade, gamble and/or shitcoin, then perhaps they should limit their trading/gambling/shitcoining to no more than 10% the size of their total bitcoin time, energies and value.
Yes.. I understand that gamblers have difficulties controlling themselves, but you never know, there could be some guys who are able to transition successfully from their gambling habits (and practices) and into habits of investing. Sometimes miracles can happen (with some efforts and perhaps guidelines?).
You are kind to gamblers, but it is also true that those who are able to successfully convert this 10% into an investment habit can later increase or add another 10% investment in Bitcoin with that money if they wish.
Of course, each of us can do anything that we wish in terms of managing our holdings and/or managing how much we allocate to investing as compared with trading (gambling), shitcoins and/or whatever other dumb shit that we might choose to do.
Even though I did not put a qualifying note in my above-mentioned limitation on the categories of trading (gambling) and/or shitcoining, I am not suggesting that guys fuck around with lying to themselves or fucking around with manipulating their own bitcoin by reallocating from bitcoin and into their trading (gambling) and/or shitcoining whenever they are losing money.... and so yeah, if guys are so unable to control their own inclinations towards gambling, then their own behaviors and/or fucking around is on them rather than my giving them permission to be a degenerate.. and so I hardly give any shits if guys choose to be degenerates, since it is their choice to figure out how to control (or try to control) their own self-destructive inclinations.
However, this decision should be made after knowing everything in advance so that there is no unrest in the mind if the time, money and effort are wasted later.
Huh? Where do you get these lame ideas that perfect knowledge (or knowing everything) is even possible? If you had not noticed, each of us tend to operate with quite a bit of imperfect knowledge, even if we happen to be quite smart, observant and/or intuitive, we are still quite limited in the amount we know and/or able to predict. Normies also tend to allow emotions and/or bad habits and/or bad past practices distort their thinking and impair their actions, whether consciously or unconsciously.
In other words, you come off as delusional if you believe that perfect knowledge can be achieved and/or that investing into bitcoin needs to wait for either perfection in knowledge or making great strives in the direction of perfection of knowledge.
In this thread, many of us (especially yours truly since it is my bitcoin investment ideas thread) recognize/appreciate that there is value in starting to invest in bitcoin from whatever financial and/or knowledge and/or psychological point that we find ourselves, as long as we can determine that we have discretionary funds available to get started investing in bitcoin. So, frequently guys are going to start investing into bitcoin from a starting point that may well have a lot of imperfections and a lot of things that they might even recognize/appreciate as needing to be fixed, yet the fact that there are a lot of imperfections, the bitcoin newbies (or even the guys who have been in bitcoin for a while) should not be dissuaded from investing into bitcoin (or continuing to invest in bitcoin), even though from time to time, bitcoin investors may well find themselves making adjustments to their investment size or even finding themselves with a decently long list of items that they need to work on (or to try to fix) within their own practices and/or their ways of thinking.
On the other hand, those who want to accumulate Bitcoin for the next 5-10 years should focus more on increasing income and following regular DCA instead of constantly monitoring the market. Because there is no guarantee that just by making a profit from trading, you will get better results than long-term holding.
Sure. Nothing wrong with this observation.
It is not the case that if someone separates 10% from Bitcoin investment and trades with it and gains 15%, they will be more profitable than investing in Bitcoin, because at this time, i.e. at the same time, the price of Bitcoin can increase by 30% which means that he is trading at -15% compared to long-term investment.
You seem to be reading too much into the various ways that traders might allocate the trading portion of their portfolio. Traders have all kinds of latitude in both how they trade and how they might move their funds (or take profits).
For example, I mentioned earlier that guys might already have a trading portfolio at the time that they first decide to start to get involved in bitcoin, and so they have all kinds of options in the various ways that they might "limit" their trading as compared to whatever they decide to do with bitcoin and still stay within some kind of a reasonable 10% allocation to trading as compared with 90% in bitcoin. They might decide to increase their trading portfolio 10% of the size of their new bitcoin buys every time that they buy bitcoin, or they might decide to NOT allocate anything new to their trading portfolio until their bitcoin investment reaches 9x or 10x larger than their trading portfolio. You seem a bit delusional if you think that there is no way that traders cannot figure out reasonable ways to limit their trading portfolio as compared with their bitcoin portfolio. And, yeah sure traders (gamblers) might not be able to completely control any kind of sticking to a plan, but that does not mean that they are not able to organize and set up plans that might even be prudent and/or reasonable that end up degenerating into gambling without following the limitations that they had already set for themselves.
I don't understand this part. There's nothing wrong in buying bitcoin aggressively as long as you have the financial capacity to do that. A person may start his bitcoin accumulation initially and later get an additional source of income. When he gets additional source of income, he may decide to increase his investment amount to fasten his steps to his accumulation goal. Becoming aggressive is a personal choice and it borders on your finances.
Another scenario is that a person may be maintaining a given DCA strategy and eventually gets additional money. What does he do, he will decide the amount to buy bitcoin aggressively while maintaining his long-standing DCA. So there's no point saying that ...you cannot buy bitcoin aggressively. Buying bitcoin needs patience but that does not mean that being patient is against buying bitcoin aggressively as long as you have extra money to invest with out interfering in your basic responsibilities.
What you just said is right, but where some investors get confused is that they mix up aggressive buying with reckless buying. Aggressive buying isn't a problem here when an investor is capable of doing that; that's if there's a solid foundation put in place for such. After the investor must have settled every bill and no loans they owe,
A bitcoin investor can buy bitcoin aggressively, even while he has outstanding bills and/or outstanding loans. How he prioritizes his payments and/or what he might have to settle on a monthly basis may well have flexibility, and if so, then the guy can decide for himself which matters remain priorities for him.
in this case your source of income is at peace.
Guys can also have irregular source income and/or irregular expenses, and still decide to invest into bitcoin aggressively. Of course, the more irregular the income/expenses then the more logical, reasonable and/or prudent it may well be to build and maintain larger quantities of back up funds.
Whereas reckless buying is when you aren't using a discretionary income or using money that is above your risk threshold (i.e., money that you cannot afford to lose).
Sure. Investing beyond what you can afford to lose may well fall into the category of overly aggressive buying of BTC, and also not providing enough of discretionary funds for back up funds and/or for discretionary consumption may well end up putting a person into the category of overly aggressive buying of BTC.
Therefore, before you buy Bitcoin aggressively, one key thing to ask is, let's say the price of Bitcoin drops 50% tomorrow from the point you bought, and eventually you lose your job too, would you panic sell, or would you be fine? So now the answer is left for every individual investor to answer.
Yep. there may well be ways that guys can run scenarios through their head in order to try to determine if they have enough bitcoin and/or enough back up funds and that they are going to be financially and psychologically comfortable with such future outcomes, and perhaps even thinking through some extreme outcomes that may or may not end up happening.
It seems to me that each of us should be striving to assess more likely scenarios and give more weight to more likely scenarios that are more likely to play out, yet at the same time we try to set up both our bitcoin investing practices and our cashflow management practices in such ways that we are largely financially and psychologically prepared for both the likely scenarios and also we are prepared for the less likely scenarios.
Generally and in conclusion, buying aggressively to me is a choice.
Yep. Guys sometimes describe how they spend their discretionary funds as if they were forced into such spending of those funds, when that is not the case. Sure, we can assign high or low priorities to various ways that we choose to spend our discretionary funds, yet within the name ("discretionary"), we should already realize that "discretionary" means choice, and yeah, even though there may be ways that we feel that we need to spend some of our discretionary funds, such as we feel that we have to go to our sister's birthday party every year in order to preserve our relationship with her and the rest of the family, yet we should still be able to recognize and appreciate the difference between basic expenses and discretionary expenses (sometimes referred to as needs versus wants).
