What makes a good investor, is simple the ability to understand the risk and plan very well before making any move. Having patience also can make one a good investor as investment take time to yield good result. If one is not patient, he ends up investment in the wrong time and making rash decision that can complicate his investment .
As some good strategist has said before now, always learn to diversify portfolio and avoid placing all eggs in one basket. As this is another way to be a good investor. Learn new strategies, follow new trends, always be informed about latest Change in the market and overall, take you time to plan. Don't be in a hurry.(fomo) and with these you can become a good investor.
I am just starting to read through this thread, and I cannot resist to make some comments before i get through the whole thing.
I agree with the main sentiments of what you are saying Hatchy; however, I think that you are NOT correct in suggesting that there is a need to diversify in order to have a good investing strategy.
I also disagree that you need to figure out all of the details prior to investing, since starting to put into practice some kind of an investment practice, is likely to help inspire greater learning and also greater incentives to pay attention and to figure out the details.
Accordingly, if someone is a brand new investor, such person may well focus ONLY on investing into bitcoin with a somewhat modest amount of value, such as $10 per week, and then continue to study themselves and bitcoin in order to figure out the extent to which they might need to tweak their initial plan to be more in accordance to what they are learning about themselves and about bitcoin as an investment.
They can also figure out if they want to deploy larger amounts of value to attempt to buy on dips and/or to lump sum invest - including that they can try to figure out what their target BTC accumulation amount is going to be in various timeframes that might be realistic to their projecting out their anticipated cashflow in the coming 6 months, 2 years, 5 years and/or 10 years, and they likely will not even need to be correct in terms of their various projections, except of course, the shorter the timeline the more correct that they have to be in terms of having enough money to pay for things in the next 1-3 months is more urgent than trying to figure out 2-5 years down the road, even though things that any of us might do now, may well likely have impacts upon what kinds of options that we might have 4-10 years or longer into the future... yet our plan about what to do 4-10 years or more into the future will be more well informed once we know where we are at at that time, rather than trying to guess where we will be at at that time, even though we can still have projections.. including more likely and less likely scenarios.. and the more unknowns that we have within the factors that we are considering, then the more difficult it is going to be to have very precise projections into further out timelines.. but should not stop us from projecting out such timelines and even having various ranges, tweak along the way and to keep our earlier version of events to try to improve upon our own planning and/or our attempts to deploy reasonable plans that fit our own personality and circumstances.
* they're risk managers
I don't think they are risk managers, because anyone who understands the high risk of investing in bitcoin would never invest on this coin. As we know cryptos are a high-risk investment and when we talk about risk it means the bigger risk is equal to biggest profit or bigger loss. so, those ones who know about risk and investment they would put bitcoin in the last spot of the investing options. And I know this because I had this conversation with some experimented Investors, and they just don't like cryptos because the risk doesn't worth it.
You are not really talking about (or thinking about) risk properly. One of the ways to think about risk is to figure out your projection of upside and downside scenarios, and to adjust your position size in terms of your expectations of upside/downside scenarios.. Perhaps you might place various timelines to reassess your investment or to consider whether to make additional changes to the way that you invest (or not) into the asset.
Another related approach is to figure out a dollar cost averaging approach, and I am talking about bitcoin, and not talking about shitcoins. Fuck shitcoins.
Anyhow a dollar cost averaging approach can be assessed as $10 per week, $100 per week, $1,000 per week or some other amount that works for your budget, and if you are more skeptical about the investment you might take a lower amount including having a lower target percentage for your accumulation level, so for example a whimpy/skeptical approach may well gravitate towards ONLY reaching around a 1% allocation into bitcoin, and a more aggressive or bullish person might target a 25% allocation into bitcoin, and any of those target allocation/accumulation levels are within a range of reason and could be ways to consider dealing with volatility and/or risk.
I am not getting what you want to express exactly. A Bitcoin investor should be well-experienced and well Patience. Otherwise, they won't become a Bitcoin investor at all. I am talking about personal investment actually, not institutional investors. Because institutional investors are well-planned and won't regret their actions. Please write well instead of botted your thread. So we can realize what you want to explain.
All these qualities op listed here are for just institutional trader or investor and not for individual investor and tradees like you and I. The only thing that really matters for individual investor is the risk aspect of it, because as an individual we must accept the risk before venturing into making investment also planned very carefully not to invest at the wrong time. However, op should have classified it based on individual and institutional traders to able the content be fully expressed and comprehensible by readers.
The basic ideas of investing are the same whether you are an individual, institution or a government, of course, individuals have more abilities to move faster, but sometimes they do not have access to the same kinds of resources that institutions and/or governments have, and one of the great things about bitcoin has been that individuals are able to front-run institutions and governments because they are both slower in their abilities to implement but they are also slower in terms of their abilities to decide (or determine) that bitcoin is a good investment (including that bitcoin may well be in the process of facilitating the greatest peaceful wealth transfer in the history of man)... and if individuals are able to recognize bitcoin as a good investment and to figure out how to get in early (and perhaps even somewhat aggressively), they are likely going to fair quite well as compared with institutions and/or governments so long as the individuals do not reck themselves in the process by either being too greedy or maybe being sloppy in terms of the ways that they store/secure their coins.
I don’t know the purpose that this thread serves, maybe this your own idea of what a bitcoin investor should be. IMO the most important thing when investing in bitcoin is understanding the tech and being patient with your investments. Bitcoin is not a get rich quick scheme, it takes times for investors to see x2 of their investment, not many can be disciplined to hodl for that long, that’s why it’s recommended to invest only what you can afford to lose.
I have my doubts regarding the extent to which anyone needs to know about the tech of bitcoin in order to understand various aspects of the strength of bitcoin's investment thesis.
Sure, try to understand as much as you are able to understand, but don't let the perfect be the enemy of the good and don't kill yourself over those kinds of details since understanding the tech is not a prerequisite towards being able to recognize bitcoin as a good investment in terms of its sound money properties and in terms of the various ways that it has allowed for the widespread storage and communication of value in ways that previously had not been possible.
Bitcoin investors know when and how to invest weather trading or mining there is an appropriate time for it.
A good investor does not time in the market because they will face with very challenging task when timing in the market. Mostly they will fail with that task so they have to use a better strategy, dollar cost averaging DCA that does not require them to time in the market.
And as investor you're not expected to hit and run or even eat up your profit. You've to give it time to grow hip hop and accumulate more.
No. Investors must have profit and take profit. They invest to gain profit so what is the point to not take profit with your investment.
Important reminder is if you can hold your coins in a long time like during two halvings about 5 or 8 years, that is great and with two halving cycles, you can take very good profit but it is not wrong if you take profit earlier, anytime if you see profit is good with you.
It is also not bad if you do not take profits. or if the amount of profits that you take is ONLY a very small percentage of your overall BTC holdings, such as if your plan might be to hold bitcoin for 10 years or more or even 20-50 years or to be able to create various kinds of generational wealth with your bitcoin.
If the various possibilities of bitcoin are even close to as great as they are reasonably projected out to be, there can be ways to shave off various profits at various points, and still be rich as fuck into the future, and you have mostly errored on the side of holding your bitcoin rather than selling it for some crap such as fiat.. but surely if there are other ways to diversify your investment, there is nothing wrong with that - but there may well be no need to hold largely inferior assets merely because the value of your bitcoin has become way greater than any other assets that you might hold.
Let's say that you start out with a target investment portfolio that is around 10% to 15% bitcoin, however, over the next 5-8 years (your timeline), you notice that your bitcoin have become 60-90% of the value of your total investment portfolio, and the reason for the lopsidedness has to do with the appreciation of the price of bitcoin, since your other holdings have largely increased at a regular pace of 5% to 10% per year on average, but bitcoin has out performed those other investments, so then in that kind of a case, what is the need to diversify out of bitcoin into "inferior" investments? I doubt that there is a need to do such a thing, even though each person is free to figure out the extent to which s/he might feel that s/he needs to be invested into assets (such as property, stocks, bonds, cash and/or commodities) other than bitcoin.
