Newbies don't buy bitcoin over aggressively.

[taufik123]

Speaking of capital management, think that comes naturally when folks learn to manage their emotions. I mean the main thing that pushes most investors into being over aggressive is their inability to control their emotions, mostly when they see what seems to be a potential opportunity, and they start feeling it’s a lifetime opportunity and if they missed it that time, they’ll never get the chance again, forgetting that Bitcoin investment rewards patience and consistency than it does smartness and perfect timing.

Controlling emotions is indeed quite important, I myself have even been in a situation where I was faced with a coin that I had predicted would increase 10x,
but my emotions were really unstable between buying it or ignoring it.

But then because my psychology was destroyed and there was some trauma that was quite attached, I finally ignored the coin, then a few hours later the price soared 20x the price I knew before.
My inability to control my emotions made me miss out on the potential, and this was also due to some of the trauma I had experienced, so I couldn't make the right decision.

[SeriouslyGiveaway]

Controlling emotions is indeed quite important, I myself have even been in a situation where I was faced with a coin that I had predicted would increase 10x,
but my emotions were really unstable between buying it or ignoring it.

My inability to control my emotions made me miss out on the potential, and this was also due to some of the trauma I had experienced, so I couldn't make the right decision.

Emotion is hard to control with everyone as human, we're all not like robots but through learning for knowledge about Bitcoin, its market history and cycle, we can have better preparation for our experience in this market. Better if we also spend time for learning about psychology of market cycle, so that we can know how market makers manipulate the market as well as how most of market participants react in different phases of a market cycle.

Visualizing the Psychological Pitfalls of a Typical Market Cycle.

[cxtreenal]

Speaking of capital management, think that comes naturally when folks learn to manage their emotions. I mean the main thing that pushes most investors into being over aggressive is their inability to control their emotions, mostly when they see what seems to be a potential opportunity, and they start feeling it’s a lifetime opportunity and if they missed it that time, they’ll never get the chance again, forgetting that Bitcoin investment rewards patience and consistency than it does smartness and perfect timing.

Controlling emotions is indeed quite important, I myself have even been in a situation where I was faced with a coin that I had predicted would increase 10x,
but my emotions were really unstable between buying it or ignoring it.

But then because my psychology was destroyed and there was some trauma that was quite attached, I finally ignored the coin, then a few hours later the price soared 20x the price I knew before.
My inability to control my emotions made me miss out on the potential, and this was also due to some of the trauma I had experienced, so I couldn't make the right decision.

In some cases we have to face such a situation but even though it has its relative importance, it is better to be careful in taking risks. If the price had decreased by 20x, you would have thanked your emotions for doing the right thing. Sometimes we cannot ignore our emotions if it is within our means.

I had an experience where I was tempted by someone to buy and it was tempting that within a few days it would increase in value several times. Without taking any risk, I bought through funds according to my means but the price was decreasing more than the increase and I panicked and sold.

Our mentality will show instability for profit but stability is a positive quality whose proper application will teach us to practice avoiding risky situations and teach us to control our emotions.

[Supreme Donvic]

Speaking of capital management, think that comes naturally when folks learn to manage their emotions. I mean the main thing that pushes most investors into being over aggressive is their inability to control their emotions, mostly when they see what seems to be a potential opportunity, and they start feeling it’s a lifetime opportunity and if they missed it that time, they’ll never get the chance again, forgetting that Bitcoin investment rewards patience and consistency than it does smartness and perfect timing.

Controlling emotions is indeed quite important, I myself have even been in a situation where I was faced with a coin that I had predicted would increase 10x,
but my emotions were really unstable between buying it or ignoring it.

But then because my psychology was destroyed and there was some trauma that was quite attached, I finally ignored the coin, then a few hours later the price soared 20x the price I knew before.
My inability to control my emotions made me miss out on the potential, and this was also due to some of the trauma I had experienced, so I couldn't make the right decision.

A lot of us have faced similar thing to what you just experienced and the regret in it is just too much, I remember wanting to accumulate a particular coin and because of my emotions I didn't and the coin grew very big in price, I was very angry at my self that I didn't buy that particular coin and this are things emotions do, it is very difficult for you to control your emotions when ever you are doing something very important it will always want to lead you, to some people they believe that their emotions lead them to do the right thing always.
If we can be honest to ourselves controlling your emotions are very difficult and I don't think it's possible to actually control your emotions totally or to totally remove it when making decisions, if you really wanted to invest $200 and your emotions wants to stop you and it didn't work it will just make you reduce the money to $100.

[kawetsriyanto]

True, but sometimes, it doesn’t really require any deep reasoning or thinking, because your strategy is usually there as a guide, all you gotta do is just look at your strategy and evaluate if your strategy would allow you to be more aggressive, less aggressive or just maintain your position. The most important thing is that, these decisions shouldn’t be base on some emotion or current market reaction but rather based on your strategy.

Considering a proper strategy and evaluating the strategy, these all require deep thinking. I don't understand how you can do it without deep thinking or deep analysis. 
Sure, we mustn't make any decision based on emotional reason. This only leads to bigger chances of losses because we do it with lack of considerations.

This is why it’s even more advisable that newbies should start investing with the DCA method with the amount they can afford to lose.

Agree, DCA method is suitable for newbies/beginners. They can buy at varied prices, so they won't be trapped at a certain price. However, beginners/newbies must keep using deep analysis before they buy Bitcoin even if it is with DCA strategy.

You also need to do capital and Emotions management so that everything can go according to the original plan.
By having good management, when the market goes down beyond the prediction, you still have the opportunity to buy more with the reserve funds that you have prepared,
that is the purpose of good and correct management.

Exactly. Emotional management and capital management are needed. This will ensure us to use the funds effectively and we avoid to buy Bitcoin carelessly. If someone always do it with analysis, I'm sure they won't buy because of emotional reason. Just remember that we never buy Bitcoin before we do analysis!

[taufik123]

Emotion is hard to control with everyone as human, we're all not like robots but through learning for knowledge about Bitcoin, its market history and cycle, we can have better preparation for our experience in this market. Better if we also spend time for learning about psychology of market cycle, so that we can know how market makers manipulate the market as well as how most of market participants react in different phases of a market cycle.
Visualizing the Psychological Pitfalls of a Typical Market Cycle.

That's very important, not only about technical and fundamental analysis, but studying how the psychological cycle will give us knowledge of how we should act on this unpredictable crypto market.
As you shared about Psychological Pitfalls, it's a psychological cycle that actually happens.

I had an experience where I was tempted by someone to buy and it was tempting that within a few days it would increase in value several times. Without taking any risk, I bought through funds according to my means but the price was decreasing more than the increase and I panicked and sold.

Never trust the lure or advice of others that even that won't be a guarantee you'll be able to make a profit.
You should do your analysis first before accepting advice from others, when you experience such a loss, no one will be responsible except yourself.

-snip-
 to some people they believe that their emotions lead them to do the right thing always.

No emotion will lead to the right decision, in the end it will only suffer more losses without good discipline.
Emotions that continue to fluctuate endlessly will only put more pressure, psychology is really out of control.

Exactly. Emotional management and capital management are needed. This will ensure us to use the funds effectively and we avoid to buy Bitcoin carelessly. If someone always do it with analysis, I'm sure they won't buy because of emotional reason. Just remember that we never buy Bitcoin before we do analysis!

Analysis is the main key to entering, not just following emotions that will only lead to wrong decisions.
Good psychology without analysis will also not provide definite benefits, because there is no analysis supported by valid data.
Analysis is the main key, but good psychology and emotions will provide the most appropriate decision.

[cxtreenal]

I had an experience where I was tempted by someone to buy and it was tempting that within a few days it would increase in value several times. Without taking any risk, I bought through funds according to my means but the price was decreasing more than the increase and I panicked and sold.

Never trust the lure or advice of others that even that won't be a guarantee you'll be able to make a profit.
You should do your analysis first before accepting advice from others, when you experience such a loss, no one will be responsible except yourself.

You are right. It is important to analysis yourself before putting other people's advice into practice because there is no guarantee that a skilled person will give me the right advice. Or the strategy that is right from his financial point of view may not be right for my financial situation. A skilled investor has gained experience through long term market analysis and investment. It may be wrong for us to expect something easy. To learn we need to practice and be involved in long term investment.

[Tungbulu]

You are right. It is important to analysis yourself before putting other people's advice into practice because there is no guarantee that a skilled person will give me the right advice. Or the strategy that is right from his financial point of view may not be right for my financial situation. A skilled investor has gained experience through long term market analysis and investment. It may be wrong for us to expect something easy. To learn we need to practice and be involved in long term investment.

As long as investment is concerned, especially in an asset like bitcoin, it's impossible for everyone to have the same approach, this is because there's no one size fits all strategy to investing in Bitcoin. everyone has their own individual factors, and it is these factors that determine the kind of approach the investor chooses. What works perfectly well for one investor might end up complicating things for the next one, and that's exactly how investing in bitcoin is, that's exactly what makes it very unique.

[laijsica]

Over aggressive buying means buying bitcoin with money that is not your discretionary income. Only invest with the amount of money that you can afford to lose.

What are your thoughts on this

Many investors build a floating reserve fund from discretionary income. They can build an emergency fund with that discretionary income. I am talking about those poor investors who do not have much extra wealth, they use discretionary income to accumulate Bitcoin. For an emergency fund and also to create a floating cash fund. While doing regular DCA, you can do aggressive DCA if you get a bearish season. Although the DCA method is so important to accumulate Bitcoin regardless of the price, sometimes being aggressive can be a disadvantage to building a decent Bitcoin portfolio.

[Gost ms]

Over aggressive buying means buying bitcoin with money that is not your discretionary income. Only invest with the amount of money that you can afford to lose.

What are your thoughts on this

Many investors build a floating reserve fund from discretionary income. They can build an emergency fund with that discretionary income. I am talking about those poor investors who do not have much extra wealth, they use discretionary income to accumulate Bitcoin. For an emergency fund and also to create a floating cash fund. While doing regular DCA, you can do aggressive DCA if you get a bearish season. Although the DCA method is so important to accumulate Bitcoin regardless of the price, sometimes being aggressive can be a disadvantage to building a decent Bitcoin portfolio.

Our first focus in creating a fund is the emergency fund. An emergency fund is the fund that we create only to deal with all financial crises and unexpected financial disasters. So it is always good to pay attention to a reserve fund after creating an emergency fund.

Every person needs to invest with their discretionary income, whether they are rich or poor. Even a rich person, if he invests with the required amount of money and if that amount of money is needed before the end of the period, he may have to sell his holdings. And if this need occurs during a market downturn, then he will have to face a loss and sell his holdings. So every person needs to invest with his discretionary income

[Baki202]

Yes, greed is indeed one of the causes, but lack of management is also the reason why trading and investing are carried out aggressively because they do not know when to enter and when to exit.
Just apply trading and investing like gambling, so it won't be good and end up buying too much at a high price because it's too FOMO.

Greed ia one of the problem that a lot of people have faced and it is now inside them that they feel like they will just make enough money over night and if some of them have understood this whole thing better it would have been okay for them than just them trying to make quick money and also comes with a greedy attitude and they just lack qualities in other for them to just enjoy investing in bitcoin and if it comes to investing in bitcoin the only that you need the most is just for you to know the basics that way a lot of things can be avoided in such that greed will not even come to your way.

Good investing and trading always have a strategy and management to determine where you will enter and where you will exit,
that way profits can be made without the need to be too greedy to make profits faster, there will all be a process.

In this business you need to know how to strategies and the same time how to manage a lot of things matters a lot so in this case been after profits there ia nothing wrong with that but we're the problem now is when there is no proper structuring, and when it comes to money and investment you need to be very serious because mismanagement can lead to loss of those the money invested because of lack of structuring then might lead to selling.

[Big Dirams]

I had an experience where I was tempted by someone to buy and it was tempting that within a few days it would increase in value several times. Without taking any risk, I bought through funds according to my means but the price was decreasing more than the increase and I panicked and sold.

Never trust the lure or advice of others that even that won't be a guarantee you'll be able to make a profit.
You should do your analysis first before accepting advice from others, when you experience such a loss, no one will be responsible except yourself.

You are right. It is important to analysis yourself before putting other people's advice into practice because there is no guarantee that a skilled person will give me the right advice. Or the strategy that is right from his financial point of view may not be right for my financial situation. A skilled investor has gained experience through long term market analysis and investment. It may be wrong for us to expect something easy. To learn we need to practice and be involved in long term investment.

That why it always advisable as a newbie in investment journey one should seek a lot of opinions from many experienced individuals not just a individual but some of them and with their opinions and way of experience they have gain in the market so far we can see their faults and look into the positive outcome of their mistakes and we can put many of this strategies into practice and see which works perfectly fine for us.
 Bitcoin investment is a great investment and being part of it is a very positive  decision after all we know how investing in bitcoins goes not fully guaranteed but we have bigger chances of success when we have a reliable strategy.

[taufik123]

Greed ia one of the problem that a lot of people have faced and it is now inside them that they feel like they will just make enough money over night and if some of them have understood this whole thing better it would have been okay for them than just them trying to make quick money and also comes with a greedy attitude and they just lack qualities in other for them to just enjoy investing in bitcoin and if it comes to investing in bitcoin the only that you need the most is just for you to know the basics that way a lot of things can be avoided in such that greed will not even come to your way.

Knowing the basics alone isn't enough to achieve a profitable Bitcoin investment, but controlling your emotions and knowing how your psychology is when investing is important to know.
Because all decisions will ultimately prioritize psychology and each decision will give different results. 

In this business you need to know how to strategies and the same time how to manage a lot of things matters a lot so in this case been after profits there ia nothing wrong with that but we're the problem now is when there is no proper structuring, and when it comes to money and investment you need to be very serious because mismanagement can lead to loss of those the money invested because of lack of structuring then might lead to selling.

This proper structure is a management and strategy that is well implemented, but you still have to have a backup strategy so that the structure is not damaged and creates panic.
Those who are still surviving now already have a definite goal and some have already taken advantage to start an investment that will become bigger.

[kawetsriyanto]

Analysis is the main key to entering, not just following emotions that will only lead to wrong decisions.

True. Analysis is the process to find out the best formula to deal with any situation. Through analysis, we determine complex aspects. So, we can understand it and decide in a wise way. If we just follow the emotion, we probably never consider anything and be hurry to make a decision.

Good psychology without analysis will also not provide definite benefits, because there is no analysis supported by valid data.

I'm sure the people who have good psychology, they will provide analysis. Sure, the analysis must be supported by data. If there is no supporting data, it is just a pure guess.  

Analysis is the main key, but good psychology and emotions will provide the most appropriate decision.

All of them actually take a role. Knowledge also requires to make an appropriate decision. Psychology and emotion are the aspect of mentality which is also needed to ensure the decision will be made by calm mind. So, these all are needed to make a proper decision.

[Pipswizard]

This is to all newbies who wants to start their bitcoin long-term investment. It's good that you figure out how much you can use from your extra cash to invest in bitcoin from your income. This will enable you buy whenever you have received your income using DCA strategy. You shouldn't use money for your basic needs to buy bitcoin and start starving yourself or endanger your health. If you do that, you are only punishing yourself and gambling with your health because you will finally sell the bitcoin that you bought when you can no longer cope with the punishment.

Bitcoin investment should be done with ease by using only your discretionary income to invest gradually, that will relieve you from financial stress, and enable you to control your emotions when there is a dip in price to achieve your long-term goal. If you prevent yourself from living a normal life, and go to a lower standard of life, you can die before your time.

Over aggressive buying means buying bitcoin with money that is not your discretionary income. Only invest with the amount of money that you can afford to lose.

What are your thoughts on this

This is helpful advice.

But I have a question for someone who earns a modest inCome and can only afford maybe $20-$30 a month to invest,

is DCA still worth it at that scale? Or is the amount too small to make a meaningful difference over time?

[taufik123]

I'm sure the people who have good psychology, they will provide analysis. Sure, the analysis must be supported by data. If there is no supporting data, it is just a pure guess.  

Such guesses should be avoided and will only give a loss in the end, because they are not based on analysis but on instinct.
Trading does not depend only on instinct, but on Technical and Fundamental Analysis data.

Seeing some beginners just guessing, it's just like gambling because they can't determine where the right price is going in and out.
Psychology will also be greatly burdened when trading only uses a guess.

[Merit.s]

But I have a question for someone who earns a modest inCome and can only afford maybe $20-$30 a month to invest,

is DCA still worth it at that scale? Or is the amount too small to make a meaningful difference over time?

Of course, you can DCA with that amount even with as low as $10, you can DCA monthly, regularly before you will know it in four years time, you will be surprised with how much bitcoin you have accumulated.

There's power in little beginning, it might look little but overtime, it will be a significant amount. One thing you should also consider is holding for a long-term while you keep your DCA ongoing. Also, you should look for other means to increase your income so that, you can also have extra money from their to increase your DCA amount.

[kawetsriyanto]

Such guesses should be avoided and will only give a loss in the end, because they are not based on analysis but on instinct.
Trading does not depend only on instinct, but on Technical and Fundamental Analysis data.

You're right. It must be avoided. Investing/trading without a clear analysis and relying to instinct, it will increase the possibility for mistakes.
Yep, both trading and investing, these must be based on fundamental analysis (FA) and technical analysis (TA). Through these analyses, we can determine proper approach to apply in our trading or investment.

Seeing some beginners just guessing, it's just like gambling because they can't determine where the right price is going in and out.
Psychology will also be greatly burdened when trading only uses a guess.

Indeed. Pure guessing will be like gambling because there is no clear reason. The people who invest in this way, they usually have no good mentality as investors/traders. And many of them only stay for few weeks before they finally quit crypto market.

[Tetu100]

You shouldn't use money for your basic needs to buy bitcoin and start starving yourself or endanger your health. If you do that, you are only punishing yourself and gambling with your health because you will finally sell the bitcoin that you bought when you can no longer cope with the punishment.

That is true, you can't be accumulating Bitcoin and be starving yourself of hunger, it's an error that need to be corrected. However, everything is surpose to be done accordingly. Moreover, bitcoin is only for the living so your health should also be taking care of while carring out your investment journey to avoid stories that touch.

Bitcoin investment should be done with ease by using only your discretionary income to invest gradually, that will relieve you from financial stress, and enable you to control your emotions when there is a dip in price to achieve your long-term goal. If you prevent yourself from living a normal life, and go to a lower standard of life, you can die before your time.

Investing out of our discretionary funds is just the best thing to do as long as bitcoin investment is concerned. Their is no two ways around it, however by this you will be rest assured to arrived at your desire investment target. Furthermore, any attempt trying to risk it by not investing out of your discretionary funds  could turn disaster because when real life challenges comes, you will be force to use from your investment holding to fix things of  which is simply a sign of failure that can actually crash your dream of doing great in your investment journey.

[taufik123]

Indeed. Pure guessing will be like gambling because there is no clear reason. The people who invest in this way, they usually have no good mentality as investors/traders. And many of them only stay for few weeks before they finally quit crypto market.

And a lot happens right now, they're just curious and go in with their instinct that it's a good thing.
But when the price keeps moving and makes some corrections, panic starts to occur and it makes them panic too much and will end up just selling at a loss.

This kind of mentality is not good and it takes some basic lessons on how to buy and hold properly when the price moves and Applying DCA will be very important to do.

Don't leave the crypto market with painful losses, Losses won't happen if you don't sell your assets, let alone valuable assets like Bitcoin, it will be profitable for the long run,