Buy Buy Buy or Sell Sell Sell?

[Female King]

Experience is good for having to deal with volatility. But it doesn't make for better decisions. Even some long term investors can panic in big crashes. But there's discipline to be learned even by newcomers. If they know what they're getting into. An important lesson for all new traders is that DCA does not remove risk. It merely makes buying over time. Even a small regular acquisition can be an issue if a person is putting money into objectives that they could require for emergencies or day to day living. It's important to ask yourself if the original. Investment plan still makes sense before making a buy or sell decision or if you are making the decision based on emotion.

You are emphasing mainly on trading meanwhile that is not the discussion here, also a trader doesn't have any business using the dca strategy since they never plan to accumulate bitcoin and hold it for long, a trader only target when there is decline in price of bitcoin to sell when there is a small increase, while the dca strategy is a method of buying consistently and persistently regardless of the price of bitcoin and hold for long, the only time an investor is expected to sell is when they have accumulated enough bitcoin and has hit their bitcoin over accumulation before they can decide to sell some small part of their bitcoin and still be holding that is for those that found it necessary to sell.

[PhilosopherKing]

In investing, mental preparation and financial capacity to withstand adverse market conditions are important. A new investor may have more surplus money in his hands than an experienced investor. But that does not mean that he is ready to take more risks.
An experienced investor has already experienced various ups and downs in the market and long periods of price decline. As a result, he can remain relatively calm when market volatility occurs. He can stick to his long-term plan. A new investor may panic when he sees the value of his investment decrease by 20–30 percent for the first time. Even if he invests a very small part of his surplus income, he can still make the wrong decision due to lack of experience.

There is no need to invest a large sumt of money in the beginning. You should start with a small amount and gradually become familiar with the fluctuations of the market. Collecting regularly through the DCA method gradually builds the habit of investing and also provides an opportunity to understand your own mental reaction to different market situations.

These things takes time to develop that is why it is not needed when beginning to invest. All that a person need to start their investment is discretionary income and after they have gotten it they can begin to invest by starting with a small amount that they are okay with.And along the way they could learn to figure other things out.

Making endless preparations can just become another excuse for the person not to get started at the time they should, which could make them miss out on their buying opportunity. And without starting, the investor cannot get proper understanding of bitcoin since it is something that person can only get through ongoingly investing and experiencing volatility.

[BluebloodCXVI]

Nobody is saying a newbie “must” be aggressive with their accumulation, but if their discretionary income is big enough to accommodate aggressive buying, then why not? Even though we always advise folks to start small, understand how volatility works then increase amount later. Not everyone starting out might want to follow that same pattern, especially if they’re financially stable. That is why you can’t just assume straight up that a newbie will panick and sell his bitcoin if he starts big.

I believe strongly there is reason a newbie should not be aggressive when they start their Bitcoin investment because their ability  and emotion to handle a massive or strong Dip won't be there so I will advise they stick to the normal DCA purchase consistently maybe with time they can start after developing some level of confident that  won't alter their emotion easily. A newbie doesn't necessarily need to understand how volatile Bitcoin is I mean not to an extreme but knowing market can go up or down at any time is cool.

I think a newbie being aggressive isn’t a case of emotional thing but how much discretionary income they have at the end of the month, and how much can they be Able to allocate to buying of Bitcoin from their discretionary income without affecting their basic needs and also their emotions. You could choose to buy aggressive Without having that discretionary income or you may even have but can’t afford to lose such discretionary income on buying aggressively.

Sometimes we are left with choice of sharing our discretionary income into other stuffs, like building emergency funds, reserve funds etc. such person can’t go into aggressive buying or over aggressive buying because it will affect the other things the discretionary income can do.

I think you’re mixing up the ability for guys to buy aggressively with what aggressive buying actually means, so let me put in my two cents.

Having limited discretionary income doesn’t automatically mean that a guy cannot buy aggressively because at the end of the day, it still depends on how much of that income they’re willing and financially comfortable with allocating into Bitcoin, so yeah aggressive accumulation is something that is relative to the guy’s financial capacity and allocation strategy.
Someone could have $200 left with them after expenses have been made and they may decide to put $150 into Bitcoin, while another person with $1,000 left might only decide allocate $200 into bitcoin.
In this context, the first person is arguably more aggressive despite having less discretionary income than the second person.

Of course, emergency funds and other financial obligations can limit how much a person should allocate into Bitcoin, but i don’t think that changes what aggressive buying really means, it will simply determines how much they can reasonably afford to commit.

[Gravitypull$]

Of course, emergency funds and other financial obligations can limit how much a person should allocate into Bitcoin, but i don’t think that changes what aggressive buying really means, it will simply determines how much they can reasonably afford to commit.

No it doesn't change what aggressive buying is. I believe that someone who is has a well organised cash inflow management and has already built his backup funds as he's investing is in a better position to be more aggressive than a brand new investor who just started and is still building up his emergency funds. This is because he will only share his discretionary income into two parts and give his bitcoin investment a portion that's twice his discretionary consumption from his discretionary income.

[Derekfunds]

I think you’re mixing up the ability for guys to buy aggressively with what aggressive buying actually means, so let me put in my two cents.

Having limited discretionary income doesn’t automatically mean that a guy cannot buy aggressively because at the end of the day, it still depends on how much of that income they’re willing and financially comfortable with allocating into Bitcoin, so yeah aggressive accumulation is something that is relative to the guy’s financial capacity and allocation strategy.
Someone could have $200 left with them after expenses have been made and they may decide to put $150 into Bitcoin, while another person with $1,000 left might only decide allocate $200 into bitcoin.
In this context, the first person is arguably more aggressive despite having less discretionary income than the second person.

Of course, emergency funds and other financial obligations can limit how much a person should allocate into Bitcoin, but i don’t think that changes what aggressive buying really means, it will simply determines how much they can reasonably afford to commit.

The fact remains that " being aggressive doesn't guarantee success in Bitcoin investment" rather it will only boost your portfolio with time but the most significant thing is the kind of mindset and mentality we have towards this act of buying aggressively. Our target and plan is the most important, some people after buying aggressively they lose the capacity to continue what they have started and sometimes it can be a distraction of price Dip. Emergency funds and financial obligations doesn't have any business with an investor being aggressive because a wise investors will always set aside emergency funds and settle all financial needs before sorting out discretionary income.

[Homemade-IQ]

The fact remains that " being aggressive doesn't guarantee success in Bitcoin investment" rather it will only boost your portfolio with time but the most significant thing is the kind of mindset and mentality we have towards this act of buying aggressively. Our target and plan is the most important, some people after buying aggressively they lose the capacity to continue what they have started and sometimes it can be a distraction of price Dip.

Being aggressive towards your Bitcoin accumulation investment is good, but it becomes a very big problem when it is over done, or when you went as far as going beyond your discretionary income, because once you do it to the extent whereby you cannot fend for your basic needs properly, then the investment will be unsustainable..

Being aggressive should not be done by beginners, even though they have the capacity to carry it out because since they are not that too knowledgeable, they might ignorantly over do it, and it will become a problem later on,  that is why it is not good for a newbie to be aggressive when accumulating.

[Cyber_warrior]

The fact remains that " being aggressive doesn't guarantee success in Bitcoin investment" rather it will only boost your portfolio with time but the most significant thing is the kind of mindset and mentality we have towards this act of buying aggressively. Our target and plan is the most important, some people after buying aggressively they lose the capacity to continue what they have started and sometimes it can be a distraction of price Dip.

Being aggressive towards your Bitcoin accumulation investment is good, but it becomes a very big problem when it is over done, or when you went as far as going beyond your discretionary income, because once you do it to the extent whereby you cannot fend for your basic needs properly, then the investment will be unsustainable..

Being aggressive should not be done by beginners, even though they have the capacity to carry it out because since they are not that too knowledgeable, they might ignorantly over do it, and it will become a problem later on,  that is why it is not good for a newbie to be aggressive when accumulating.

Restricting buying aggressively to newbies is not a good thing. A newbie who is investing and learning and also making research can buy aggressively if they have the available resource. Newbies should be guided and not giving them restrictions, how do they learn if they are being restricted to exploring.

Buying aggressively is when you abundant of discretionary income, it might come in so many ways, maybe when you have a reduction in your monthly spending on needs, maybe when you are gifted money, maybe when you win bets or lotto and so many other ways. These few guilds are what we should give them instead of restricting them.

[justinlamode]

Of course, emergency funds and other financial obligations can limit how much a person should allocate into Bitcoin, but i don’t think that changes what aggressive buying really means, it will simply determines how much they can reasonably afford to commit.

Aggressive buying is done with capital so emergency funds and other financial obligations like you said will surely limit the aggressiveness of the investor especially when the investor is yet to set up a good proportion of his protective funds. Aggressively buying when many things are not put in place may lead to the investor using money for basic needs for investment and that is not the right thing to do. Any investment done outside the discretionary income is not safe and can be held for a  long time.

The aggressive investing that produce good result is when the investor is able to allocate more funds into Bitcoin purchase and cutting down on other lavished spendings while ensuring that all protective funds are also provided.

[Agbam]

Experience is good for having to deal with volatility. But it doesn't make for better decisions. Even some long term investors can panic in big crashes. But there's discipline to be learned even by newcomers. If they know what they're getting into. An important lesson for all new traders is that DCA does not remove risk.

I think it’s a mistake you mentioned traders in your sentence there as what you’re talking about doesn’t have much to relate with trading and there’s no need to give trading relevance here.

I’ll like to argue that experience helps to make better decisions. If you’ve experienced dips and rises it adds to your confidence and understanding of bitcoin. As a long term investor in bitcoin you tend to be better prepared to withstand market fluctuations than a newbie who’s only acting on belief or theoretical knowledge.

[Obulis]

I think a newbie being aggressive isn’t a case of emotional thing but how much discretionary income they have at the end of the month, and how much can they be Able to allocate to buying of Bitcoin from their discretionary income without affecting their basic needs and also their emotions. You could choose to buy aggressive Without having that discretionary income or you may even have but can’t afford to lose such discretionary income on buying aggressively.

Sometimes we are left with choice of sharing our discretionary income into other stuffs, like building emergency funds, reserve funds etc. such person can’t go into aggressive buying or over aggressive buying because it will affect the other things the discretionary income can do.

It's not a good investment practice to buy bitcoin over aggressively regardless the size of your discretionary income because when you buy over aggressively, it means that you are buying beyond your discretionary income and that's the same thing as gambling because you will definitely sell those bitcoin when you needs arises at a lower price if the price of bitcoin is below your entry point.

You don't need to buy aggressively when you don't know how to do it so that you don't over do it. Buying aggressively is based on your financial situation playing around you at that moment and it's easy for someone with a well organized financial system and his backup funds are already in place.

I think an investor should buy in excess only when his emergency fund is adequate. And his discretionary income is high. If he has any of these less then he does not need to buy investments in an aggressive manner, if someone buys in excess and because of this if he has to get involved in any kind of loan then he will not be able to go far with his investment and at some point he may have to sell his investment due to pressure. So an investor should always use his own judgment properly and then develop an aggressive attitude in investing

You should not compare your emergency fund with your investments. You said that when an investor has a high emergency fund, he can invest aggressively, do you mean that the investor will use money from the emergency fund to invest aggressively? If your attitude is that you will use emergency fund for investment, then I would say that your idea is going in the wrong direction, emergency fund is not mainly made for aggressive investment but to ensure the safety of investment. There is no guarantee that you will not suddenly need it while investing or after investing, and if you are not financially prepared at that time, it can have a bad effect on your investment, that is, you may have to decide to sell your investment to meet the need at that time.

So that you do not have to sell your investment for that unexpected need, that is why an emergency fund is formed. Yes, I will support the second point you made that if discretionary income is high, you can invest aggressively.

Let's say the emergency funds is high or too much and a decision to invest from it is made whether aggressively or not, that decision is a bad one because altogether what you are investing with is a wrong funds and it can bring with it all the pressure that normally goes with investing with wrong funds.
The decision to make when it's that emergency funds is high is to increase your accumulation amount or start plan for aggressive buying but not to invest or buy aggressively because emergency funds is high.

[Tongley]

Of course, emergency funds and other financial obligations can limit how much a person should allocate into Bitcoin, but i don’t think that changes what aggressive buying really means, it will simply determines how much they can reasonably afford to commit.

No it doesn't change what aggressive buying is. I believe that someone who is has a well organised cash inflow management and has already built his backup funds as he's investing is in a better position to be more aggressive than a brand new investor who just started and is still building up his emergency funds. This is because he will only share his discretionary income into two parts and give his bitcoin investment a portion that's twice his discretionary consumption from his discretionary income.

Your comment is very confusing and very vague. I still don't understand what you mean. But if you mean dividing your discretionary income into two parts, one part for emergency fund and one part for investment, then I agree with you.

But yes, if you divide your discretionary income into three parts, then it may be a better decision. For example, for emergency fund, extra expenses, investment. If you divide it into three parts, then it may be the best decision for you. Many times we need some extra money weekly or monthly, for that extra expense, it is possible to meet the need by taking money from that extra fund instead of depending on the emergency fund

[New Judgement]

I don’t know why you should be talking about trading here instead of investing and what relationship do a trader have with DCAing. I don’t think traders have anything to do with using the DCA strategy because they’re only in for quick profit.

The DCA strategy is for everyone who interacts with bitcoin. The DCA is not specifically designed for only investors, it is there for everyone who wants to use it. What you do with your bitcoins after buying with the DCA method is entirely up to the individual.

Investors make use of the DCA strategy and that’s because they are focusing on a regular and long term accumulation of bitcoin and hold for their long term gains. DCA is widely regarded as the strategy for long term bitcoin investment and not traders who are in for targeting quick profit or getting rich fast.

Let’s say someone who use the DCA method and accumulate bitcoin regularly for the next 6 months or one year, he then ended up selling it after that period after seeing little profit in the overall capital invested, will you consider that person a long term investor? Of course the person is not a long term investor but a trader who is chasing little profit in a short while. Now you see that both long term holders and traders have the privilege of using the DCA method.

[Futurexxx]

Aggressive buying is done with capital so emergency funds and other financial obligations like you said will surely limit the aggressiveness of the investor especially when the investor is yet to set up a good proportion of his protective funds. Aggressively buying when many things are not put in place may lead to the investor using money for basic needs for investment and that is not the right thing to do. Any investment done outside the discretionary income is not safe and can be held for a  long time.

I don't know what's your real definition of aggressive buying of Bitcoin, but I just want to state it very clear that aggressive buying of Bitcoin is when you use a large percentage of your discretionary income to buy Bitcoin, or when you decide to buy with a large portion of your reserve funds when you saw a good buying opportunity in the market, so someone is buying aggressively doesn't necessarily mean that the said person is investing beyond his discretionary income.

And finally, buying aggressively is never a problem if the said person is staying within the confinement of his discretionary income.

[Emjay24]

some people after buying aggressively they lose the capacity to continue what they have started and sometimes it can be a distraction of price Dip.

Loosing capacity to continue buying should be due to unavailability of discretionary income or worse loss of source of income, so there is basically no funds to continue buying and at such a period, the investor can stop buying and continue holding until he has fixed his finances and is able to continue. Buying aggressively wouldn't strip you of the capacity to continue buying, unless for those who are over aggressive and buy beyond their discretionary income of which we know is not sustainable for long.

a wise investors will always set aside emergency funds and settle all financial needs before sorting out discretionary income.

Emergency fund is obtained from your discretionary income. The right thing to do is settling your expenses first, then the remainder becomes your discretionary income from which you can invest, save and discretionarily consume

[Sim_card]

some people after buying aggressively they lose the capacity to continue what they have started and sometimes it can be a distraction of price Dip

It's not a must to buy aggressively when you financial situation doesn't permit it so that, you don't buy over aggressively and end up choking yourself financially, because if you do, you will definitely sell the bitcoin you bought to take care of your needs when it arises.

Don't be carried away by the dip and buy over aggressively because you can buy aggressively any time with DCA provided that your financial situation at that moment permits it. Anyone that don't know how to buy aggressively without overdoing it, should avoid buying aggressively until, he understands it.

Restricting buying aggressively to newbies is not a good thing. A newbie who is investing and learning and also making research can buy aggressively if they have the available resource. Newbies should be guided and not giving them restrictions, how do they learn if they are being restricted to exploring.

I get your point because some newbies might be new to bitcoin investment but not new to the investment world. Some newbies might already have other investments on ground and had interest to invest in bitcoin to preserve their wealth. They might choose to diversify from their other investment into bitcoin and they can buy aggressively since, their financial system is well organized.

[letteredhub]

some people after buying aggressively they lose the capacity to continue what they have started and sometimes it can be a distraction of price Dip.

Loosing capacity to continue buying should be due to unavailability of discretionary income or worse loss of source of income, so there is basically no funds to continue buying and at such a period, the investor can stop buying and continue holding until he has fixed his finances and is able to continue.

When situations of this unexpected kind happens it should in reality serve as a lesson to the importance of having a backup funds aside and even emergency funds. Because losing are very source of income can be overwhelming and exhausting and you'll need something to fall back to for surviving the hard periods till you get on something again as income means. But where there was no backup funds neither emergency funds set aside, and period of no job lingers then the investor might be forced to want to fall back to selling his bitcoin investment little by little to survive, and this can damn his original investment plans.

[Derekfunds]

I don't know what's your real definition of aggressive buying of Bitcoin, but I just want to state it very clear that aggressive buying of Bitcoin is when you use a large percentage of your discretionary income to buy Bitcoin, or when you decide to buy with a large portion of your reserve funds when you saw a good buying opportunity in the market, so someone is buying aggressively doesn't necessarily mean that the said person is investing beyond his discretionary income.

And finally, buying aggressively is never a problem if the said person is staying within the confinement of his discretionary income.

Buying aggressively or being aggressive is entirely different from being overly aggressive, any amount someone used to purchase Bitcoin as long as it is from their discretionary income it is okay but buying or purchasing using money outside discretionary income is not advisable and it it not cool and also that is what is called over aggressive purchase, investors should avoid this because they will compromise their portfolio. I know sometimes people will want to utilize the opportunity brought by the dip but they don't know they are putting their Investment at risk.

[Nightwatchmare]

Falling market should be an added advantage to a long term investor to seize that very opportunity and stack more bitcoin at such a reduced price to build up his portfolio rather than making him uncomfortable. For me, I sincerely think that it’s only when someone is in for making quick gains that’s when a drop in price will get them uncomfortable or maybe instead of them  using their discretionary income after sorting out basic necessities to invest , they are investing with the amount they can’t afford to lose or the one they might be needing soon.

For long term investors that have been accumulating Bitcoin for some years and seen how Bitcoin drop and bounce back multiple times will always see falling market as an added advantage or opportunity and they will seize the opportunity by accumulating Bitcoin at that right time if they have discretionary income, but for newbies that are kicking starting their Bitcoin investment, they could become uncomfortable if Bitcoin is falling because they are not used to the volatile part of Bitcoin. So it is not only when someone is in for quick gains that they will become uncomfortable when Bitcoin is on down run.

[Creeper0]

I don't know what's your real definition of aggressive buying of Bitcoin, but I just want to state it very clear that aggressive buying of Bitcoin is when you use a large percentage of your discretionary income to buy Bitcoin, or when you decide to buy with a large portion of your reserve funds when you saw a good buying opportunity in the market, so someone is buying aggressively doesn't necessarily mean that the said person is investing beyond his discretionary income.

And finally, buying aggressively is never a problem if the said person is staying within the confinement of his discretionary income.

Buying aggressively or being aggressive is entirely different from being overly aggressive, any amount someone used to purchase Bitcoin as long as it is from their discretionary income it is okay but buying or purchasing using money outside discretionary income is not advisable and it it not cool and also that is what is called over aggressive purchase, investors should avoid this because they will compromise their portfolio. I know sometimes people will want to utilize the opportunity brought by the dip but they don't know they are putting their Investment at risk.

It is important to be aware of what he is doing when it comes to investing aggressively. It is also important to be aware of how aggressive he is and how much his financial situation allows him to buy aggressively. There are also considerations in going from discretionary money to aggressive, we need to be aware of whether we are being aggressive in investing despite the need for money in the backup fund or not.

Aggressive buying plays an effective role in growing the fund quickly. But if the level of aggressive buying is too high, it can damage the investment fund. So try to gain enough experience to understand the right level of being aggressive and try to stay within the discretionary money.

[Bit-Mj1014]

Of course, emergency funds and other financial obligations can limit how much a person should allocate into Bitcoin, but i don’t think that changes what aggressive buying really means, it will simply determines how much they can reasonably afford to commit.

So your trying to say investment aggressively those not really depend on the amount you invest or the number of times but what matters is the person is willing collect for his/her discretionary funds.
I'm starting to understand that different people have there own perspective about investing aggressively, my perspective is the number of times a person invests at a short period of time e.g like buying twice every week throughout the month, that I see as investing aggressively.