Buy Buy Buy or Sell Sell Sell?

[ChocolateBitcoinK]

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.

Buying Bitcoin aggressively does not mean investing beyond your financial means. If someone can maintain sufficient emergency funds and personal savings after meeting their essential expenses, then there is no objection to investing a large portion of their disposable income in Bitcoin. If a good opportunity is seen in the market, Bitcoin can also be purchased with a portion of the extra money saved in advance. However, just because the market price has decreased, there is no guarantee that it will always be a good buying opportunity.

It is not wise to invest all your savings just because you have long term faith in Bitcoin. If you do not have enough cash, you may be forced to sell Bitcoin at a loss. More important than buying Bitcoin aggressively is to invest consistently within your financial means. If someone wants to invest more it should not weaken their financial security and future plans.

[Obulis]

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.

Well, you don't actually need to think too much to know that traders can hardly intentionally use DCA strategy (if at all it happens) and can always intentionally use buy the dip strategy. As for the investors, DCA strategy becomes easily used even as they can also intentionally wait for the dip.

From the analogy you dropped, it is easier that such person ordinarily decided to hold/invest thereby using DCA strategy but along the line decided to sell their six months or one year holding which is trading. So the very important point is that they didn't use DCA strategy as traders, they used it as investors who later traded along the line (couldn't hold for too long).

[Abbatty]

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.

Don’t get it twisted, buying aggressively can come in the foam of sacrificing some part of the money to be pushed in to emergency funds in to pushing bitcoin for just a period of a week or months, depending on when your income comes in.

Or it can come in a foam of using some Part of your reserve funds to purchase Bitcoin, because that one of the reasons we have reserve funds.

It can also come in a foam when you get gifted of money, or winning lotto or getting bonus from work.

[Homemade-IQ]

Don’t get it twisted, buying aggressively can come in the foam of sacrificing some part of the money to be pushed in to emergency funds in to pushing bitcoin for just a period of a week or months, depending on when your income comes in.

 

Using money that is meant to put down your emergency funds to invest in bitcoin is nothing but over aggressive and unreasonable accumulation because an investor that does that is gambling with his holdings, because if he fails to put down an emergency funds and emergency situation comes up, his bitcoin investment may be sold off to take care of that emergency on ground, so it's an unhealthy idea to abandon stacking up your emergency funds, and be channeling that money into your bitcoin accumulation, that's a bad idea that will not end well once emergency situation comes.

[Sally9256]

Using money that is meant to put down your emergency funds to invest in bitcoin is nothing but over aggressive and unreasonable accumulation because an investor that does that is gambling with his holdings, because if he fails to put down an emergency funds and emergency situation comes up, his bitcoin investment may be sold off to take care of that emergency on ground, so it's an unhealthy idea to abandon stacking up your emergency funds, and be channeling that money into your bitcoin accumulation, that's a bad idea that will not end well once emergency situation comes.

It's not always the case. In situations where you have already accumulated enough emergency fund then it's not unreasonable to divert money meant for emergency into buying aggressively. What will be the essence of having more than enough emergency fund lying idle and then you still keep adding more to it when you can make a better use of it to increase your Bitcoin holding as fast as possible. It is unwise to hold excess fiat because of inflation, that's why there is limit to the amount of emergency fund you can hold so inflation doesn't reduce it's value.

[samadam007]

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.

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.

DCA strategy is not meant for traders no matter how you try to analyze and twist it. Ok let me ask you this. Why do think investors adopt the DCA strategy in the first place? You think it is only to build a position gradually? Using DCA automatically removes the need for folks to time the market which is the opposite of what traders do. A trader needs to follow and monitor price movement on chart to know when to buy and when to sell. A trader buying multiple times before selling doesn’t mean he is DCAing. So basically, DCA is against the habits of a trader because you can’t be timing the market to buy and calling it DCA. It is ridiculous.

[JayJuanGee]

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.

Sure.  The low hanging fruit is to not invest beyond your discretionary funds.  That is an easy threshold not to cross; however, guys still can end up investing overly aggressive even when they are investing within their discretionary funds, especially if they are investing high amounts without sufficiently accounting for allocating to savings and/or allocating to discretionary consumption.

Using money that is meant to put down your emergency funds to invest in bitcoin is nothing but over aggressive and unreasonable accumulation because an investor that does that is gambling with his holdings, because if he fails to put down an emergency funds and emergency situation comes up, his bitcoin investment may be sold off to take care of that emergency on ground, so it's an unhealthy idea to abandon stacking up your emergency funds, and be channeling that money into your bitcoin accumulation, that's a bad idea that will not end well once emergency situation comes.

It's not always the case. In situations where you have already accumulated enough emergency fund then it's not unreasonable to divert money meant for emergency into buying aggressively. What will be the essence of having more than enough emergency fund lying idle and then you still keep adding more to it when you can make a better use of it to increase your Bitcoin holding as fast as possible. It is unwise to hold excess fiat because of inflation, that's why there is limit to the amount of emergency fund you can hold so inflation doesn't reduce it's value.

If guys are managing their risks properly, then from the two categories of back up funds, reserve funds are flexible and emergency funds are not.

[Emjay24]

Don’t get it twisted, buying aggressively can come in the foam of sacrificing some part of the money to be pushed in to emergency funds in to pushing bitcoin for just a period of a week or months, depending on when your income comes in.

It isn't good to play around buying more bitcoin with money meant for building your emergency fund, Emergency fund is a very important backup fund that protects your portfolio, so if you gamble with it, it means you're gambling with the safety of your portfolio. You can boost your bitcoin portfolio from your reserved funds as it can be very flexible as per its use, but not your emergency fund, Emergency fund should be used to attend to only real emergencies.

You should build your emergency fund up to 3 months of expenses, then  you can put the funds that went to it earlier to increase your aggressiveness into bitcoin, that's the way it makes better sense.

[YUriy1991]

It isn't good to play around buying more bitcoin with money meant for building your emergency fund, Emergency fund is a very important backup fund that protects your portfolio, so if you gamble with it, it means you're gambling with the safety of your portfolio. You can boost your bitcoin portfolio from your reserved funds as it can be very flexible as per its use, but not your emergency fund, Emergency fund should be used to attend to only real emergencies.

You should build your emergency fund up to 3 months of expenses, then  you can put the funds that went to it earlier to increase your aggressiveness into bitcoin, that's the way it makes better sense.

Setting aside a 3 month reserve fund is a very wise strategy, if financial situation deteriorate this buffer allows you time to secure new sources of income. For example, if you were to be suddenly laid off from your job, a 3 month cushion provides a relevant timeframe to find new employment and get back on your feet. I also strongly agree with your point about not putting all your savings into a single portfolio doing so is highly risky if market conditions worsen. If the market turns bearish, you might be forced to sell at a loss simply because you need immediate cash. However, by maintaining a separate 3 month reserve fund you gain the flexibility to wait for the market to shift back to a bullish trend, thereby avoiding a loss.

[Qhunman]

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.

What matters is that you aren't over doing it. An investor can buy aggressive with any amount  but it should be within their capacity because the moment they buy beyond their discretionary income, they are being over aggressively,  If your finances is currently unstable, you should wait until it's stable before buying aggressively, otherwise you are gambling with your portfolio.

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.

It doesn't matter how many times you invest in a week or a month but let it be that you're finances is in order and you are using your discretionary income to invest.  If an investor is capable of investing twice or three times in a week or month, they should do so provided they won't over do it.

[Y3shot]

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.

Accumulating bitcoin in a short time and selling it is very risky. If the goal is to accumulate bitcoin and hold it for about six months, it is better to embrace trading fully and not approach it as real investors do.

Bitcoin is a long-term investment, and investors can accumulate their bitcoin. The essence of accumulating bitcoin is to hold it. There is nothing like accumulating bitcoin for six months and referring to it as short-term trading. Bitcoin investment is a long-term investment, and if anyone wants to make it short for quick profit, then it means one is going contrary, which can lead to loss of funds.

[Bushdark]

Using money that is meant to put down your emergency funds to invest in bitcoin is nothing but over aggressive and unreasonable accumulation because an investor that does that is gambling with his holdings, because if he fails to put down an emergency funds and emergency situation comes up, his bitcoin investment may be sold off to take care of that emergency on ground, so it's an unhealthy idea to abandon stacking up your emergency funds, and be channeling that money into your bitcoin accumulation, that's a bad idea that will not end well once emergency situation comes.

It's not always the case. In situations where you have already accumulated enough emergency fund then it's not unreasonable to divert money meant for emergency into buying aggressively. What will be the essence of having more than enough emergency fund lying idle and then you still keep adding more to it when you can make a better use of it to increase your Bitcoin holding as fast as possible. It is unwise to hold excess fiat because of inflation, that's why there is limit to the amount of emergency fund you can hold so inflation doesn't reduce it's value.

If guys are managing their risks properly, then from the two categories of back up funds, reserve funds are flexible and emergency funds are not.

Seems back up fund and emergency are not serving the same purpose, right?
Why is one flexible and the other is not?  Do I have to build the two aggressively when keeping the safety rules as an investor.
Sorry for jumping on this discussion!  

[Nightwatchmare]

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.

Investing or accumulating Bitcoin aggressively varies, some investors may have discretionary income which allows them to accumulate Bitcoin twice a week or month while some may have discretionary income which allows them to accumulate Bitcoin once a week or month, as they are consistent in accumulating even if they are using $5 to accumulate Bitcoin, they are investing aggressively into Bitcoin because that's is there level of aggressiveness at the moment, and if they go more than that it is seen as over aggressiveness, which is not good for an investor because that practice can make an investor to sell his Bitcoin when he did not expect.

[Ruttoshi]

Investing or accumulating Bitcoin aggressively varies, some investors may have discretionary income which allows them to accumulate Bitcoin twice a week or month while some may have discretionary income which allows them to accumulate Bitcoin once a week or month, as they are consistent in accumulating even if they are using $5 to accumulate Bitcoin, they are investing aggressively into Bitcoin because that's is there level of aggressiveness at the moment, and if they go more than that it is seen as over aggressiveness, which is not good for an investor because that practice can make an investor to sell his Bitcoin when he did not expect.

You are repeating the same thing that Bit-Mj1014 said and that's not the meaning of aggressive buying and didn't bother to read the replies below. Just because you are buying bitcoin twice in a week doesn't mean that you are buying aggressive. What if the person discretionary income is $100 and he buys bitcoin twice a week at $10 each will you call that aggressive buying? He's buying in a whimpy way.

Aggressive buying means using the largest part of your discretionary income to buy bitcoin even though, you bought once a week or in a month. For example, my discretionary income is $100 and I use $65 to buy bitcoin, it means that I bought aggressively. I don't even like the idea of buying bitcoin twice in a week, I prefer it to be weekly purchases.

[MissNonFall9]

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.

Well, you don't actually need to think too much to know that traders can hardly intentionally use DCA strategy (if at all it happens) and can always intentionally use buy the dip strategy. As for the investors, DCA strategy becomes easily used even as they can also intentionally wait for the dip.

From the analogy you dropped, it is easier that such person ordinarily decided to hold/invest thereby using DCA strategy but along the line decided to sell their six months or one year holding which is trading. So the very important point is that they didn't use DCA strategy as traders, they used it as investors who later traded along the line (couldn't hold for too long).

How can a trader use the DCA (Dollar Cost Averaging) method? DCA is one of the most popular investment strategies. However, trading and investing are not the same thing.

To invest in Bitcoin, one must first be mentally prepared for long-term saving. Long term saving is a crucial consideration in investing, whereas it is entirely irrelevant when it comes to trading.

If someone enters the Bitcoin space and sells their holdings, lured by the prospect of short term profit, how can they possibly claim to be an investor? Even if such a person calls themselve an investor, I would argue that they neither understand what investing truly is, nor do they grasp the nature of trading.

[ejikeme24]

If guys are managing their risks properly, then from the two categories of back up funds, reserve funds are flexible and emergency funds are not.

Seems back up fund and emergency are not serving the same purpose, right?
Why is one flexible and the other is not?  Do I have to build the two aggressively when keeping the safety rules as an investor.
Sorry for jumping on this discussion! 

I think the flexible he's talking about is in terms of their usage, for instance. You can actually tap from your reserve funds when you meet a good buying opportunity and it happens that you don't have enough money in your discretionary funds to buy as aggressive as you like, but your emergency funds can't be used to utilize opportunity like this even though there are guys who are doing that but it is not advisable because our emergency funds need to serve for emergency alone and should not be spend in any other thing  apart from emergency needs.

As for building the two aggressively, it all  depends on your choice. of course you can actually build the two aggressively if you want to, as for me I would rather be aggressive in my Bitcoin accumulation than to be aggressive in building this funds  I would rather build it gradually with time it will grow to a bigger level. However, keeping the safety rules does not necessarily mean that you will build the two funds aggressively, the most important thing is having them and you also have a plan of growing them to a bigger level and you can actually achieve that if you're consistent in building them no matter the amount you're putting in each of this funds.

[Joeboy]

~snip~

~snip~

Don’t get it twisted, buying aggressively can come in the foam of sacrificing some part of the money to be pushed in to emergency funds in to pushing bitcoin for just a period of a week or months, depending on when your income comes in.

Or it can come in a foam of using some Part of your reserve funds to purchase Bitcoin, because that one of the reasons we have reserve funds.

It can also come in a foam when you get gifted of money, or winning lotto or getting bonus from work.

Building of emergency funds holds an equal importance as the funds you realize and then make use of while investing...So instead of sacrificing one for the other, it just best that folks invest according to their financial strength and/or capacity...Which means that you shouldn't have to overstretch yourself or even  push for an aggressive investment if your finances cannot handle it..Coz doing so could very well expose you to the risk of selling off your investment in the face of emergency...And wouldn't it be a very bad ordeal for you to sap out your portfolio after years of investing just because you failed at acknowledging the importance of emergency funds as well as the uncertainties which surrounds emergency situations....

[Zackz5000]

Using money that is meant to put down your emergency funds to invest in bitcoin is nothing but over aggressive and unreasonable accumulation because an investor that does that is gambling with his holdings, because if he fails to put down an emergency funds and emergency situation comes up, his bitcoin investment may be sold off to take care of that emergency on ground, so it's an unhealthy idea to abandon stacking up your emergency funds, and be channeling that money into your bitcoin accumulation, that's a bad idea that will not end well once emergency situation comes.

It's not always the case. In situations where you have already accumulated enough emergency fund then it's not unreasonable to divert money meant for emergency into buying aggressively. What will be the essence of having more than enough emergency fund lying idle and then you still keep adding more to it when you can make a better use of it to increase your Bitcoin holding as fast as possible. It is unwise to hold excess fiat because of inflation, that's why there is limit to the amount of emergency fund you can hold so inflation doesn't reduce it's value.

Using money that should be allocated to your emergency funds to accumulate Bitcoin is investing over aggressively and it's not good, it's actually gambling for any one to do that and not an investment, you can't tell when an emergency will happen and how the emergency will be if it will even eat up more than the emergency funds you have saved previously so it's just better to use your emergency funds to accumulate Bitcoin, there are ways to still invest in Bitcoin aggressively without overly doing it, from your reserve funds or discretionary income you can use to invest in Bitcoin aggressively.

[Perfect-World]

If guys are managing their risks properly, then from the two categories of back up funds, reserve funds are flexible and emergency funds are not.

Seems back up fund and emergency are not serving the same purpose, right?
Why is one flexible and the other is not?  Do I have to build the two aggressively when keeping the safety rules as an investor.
Sorry for jumping on this discussion!  

Emergency fund is a part of back up funds, and so, when we say back up funds, it covers the two, which are, 1) emergency funds and 2) reserve funds.

Your back up aren't flexible, meaning it is specifically as a back up funds to cover for emergency financial needs that may arise during your investment so that you don't get to tap into your investment unplanned. While the other,
Reserve funds is also a back up funds, but it's a bit flexible because many atimes, it can be used to buy Bitcoin in dip periods and can also cover some needs. But the emergency funds isn't flexible because it's strictly for emergencies.

If you have to build them up, yes, but aggressively, I don't think so. You just have to take your time and as you are buying Bitcoin, you are also building the back up funds(which is emergency and reserve funds).

[Charcol]

Investing or accumulating Bitcoin aggressively varies, some investors may have discretionary income which allows them to accumulate Bitcoin twice a week or month while some may have discretionary income which allows them to accumulate Bitcoin once a week or month, as they are consistent in accumulating even if they are using $5 to accumulate Bitcoin, they are investing aggressively into Bitcoin because that's is there level of aggressiveness at the moment, and if they go more than that it is seen as over aggressiveness, which is not good for an investor because that practice can make an investor to sell his Bitcoin when he did not expect.

Aggressive buying means using the largest part of your discretionary income to buy bitcoin even though, you bought once a week or in a month. For example, my discretionary income is $100 and I use $65 to buy bitcoin, it means that I bought aggressively. I don't even like the idea of buying bitcoin twice in a week, I prefer it to be weekly purchases.

Buying Bitcoin with a large portion of your discretionary income would be an example of aggressive investing. However, you can also buy aggressively using some of your reserve funds. Whether you are even being overly aggressive will depend on your remaining financial security. Someone may already have some reserve money. They can decide to buy extra from that reserve in addition to their regular purchases if they want. However, the important difference is that an emergency fund and a reserve fund are not the same. The function of an emergency fund is to set aside money for your financial emergencies. However, a reserve fund can be used in a relatively flexible manner. However, just because it is possible to buy Bitcoin with reserve money does not mean that it is logical for everyone to use all of that money to invest. In my opinion, the difference between buying aggressively and buying overly aggressively should be considered in the overall financial situation of the person.