The Invisible Line Between Investing and Gambling

[Sowat]

Many say investing and gambling are totally different. I largely agree with that notion, although I sometimes think the boundary line blurs quite easily once our original plans go out of window. Take two individuals with a solid plan to invest their BTC in amounts that can be left undisturbed for years.

They initiate an investment strategy of regular buys and discipline against emotional reactions.

Six months later, one of these investors cannot resist looking up the price every hour. Red candles are an signal for sell and green ones as opportunities they miss if they fail to do so. The plan gets pushed aside and replaced by the input from other, whether be it people on the streets, in the various telegram group, YouTubers or predictors predicting the rise and fall. They eventually stopped the thought process with Has my long term thesis changed?

instead ask  What will the price do tomorrow?

This is why, unknowingly a lot of those who set out to invest become traders. I’m perfectly okay with individuals who trade stocks but they have tested strategies and know what risk management means. Trouble brews when those that aim to invest become traders through making decisions without a plan.

We can’t even compare those with  I do random buys & sells based on emotions vs ones who have real systems to execute trades based on market conditions. What the big players of long-term investing like to do instead of chasing what will happen tomorrow? Spending more on learning.

They learn about the economics behind bitcoin, the network, adoption and security, what gives it monetary properties instead of the hype on youtube or facebook.

It's not about being intelligent to win the market, because actually we are too stupid for it. Nobody can predict market timing reliably. Investing is waiting the clock to tick but gambling is jumping with it to and fro to get a winning lottery ticket. Many would be even more successful had they just stuck with their long term plan than attempt to outwit market movements at every turn.

Last is the risk management, especially dealing with your own fears, insecurities & confidence to not be able to control ourselves makes us impulsive & do things we regret in the market.

Because, the hard part of bitcoin investment is not the tech behind it, but the psychology. Fear, Greed, Impatience and overconfidence kill good strategies faster than market volitality ever could, am I right? So what’s biggest threat to your long term investment: Market volitality or the inability to control your Emotions & follow your plan.

[Jammy01]

Because, the hard part of bitcoin investment is not the tech behind it, but the psychology. Fear, Greed, Impatience and overconfidence kill good strategies faster than market volitality ever could, am I right? So what’s biggest threat to your long term investment: Market volitality or the inability to control your Emotions & follow your plan.

 
having a plan before buying is more important than people think
It is very easy for someone to say that "I will hold through the dip" when bitcoin is moving up but things can feel very different when you are watching your money drop

Knowing how much you're willing to lose or when you are going to sell before buying can stop you from making a decision out of panic.

[Franklyn-wood]

Because, the hard part of bitcoin investment is not the tech behind it, but the psychology. Fear, Greed, Impatience and overconfidence kill good strategies faster than market volitality ever could, am I right? So what’s biggest threat to your long term investment: Market volitality or the inability to control your Emotions & follow your plan.

 
having a plan before buying is more important than people think
It is very easy for someone to say that "I will hold through the dip" when bitcoin is moving up but things can feel very different when you are watching your money drop

Knowing how much you're willing to lose or when you are going to sell before buying can stop you from making a decision out of panic.

 It is very important to know that the fear of Bitcoin falling below it current stability is what is coming in to the mond of people who invests in Bitcoin, because they start to think that could if the fiat could be shaking due to economic challenge, how much Moore Bitcoin that have no middle man to control it in and out flow. Another thing is the level at which one understand every about Bitcoin will make the mind confident enough.

[ColdLava40]

Many say investing and gambling are totally different. I largely agree with that notion, although I sometimes think the boundary line blurs quite easily once our original plans go out of window. Take two individuals with a solid plan to invest their BTC in amounts that can be left undisturbed for years.

There is a far line between investing and gambling and it's not even close.

In other for us not to complicate them, it's better to know that gambling requires no planning, there might be some strategies but they don't hold for long.

Investments contains more than just your financial inputs. You must handle yourself more than you handle your investment because a well developed mindset in the market will determine how far your journey would be.

Some investors drops out on the way not because they lack the capital, but because they couldn't build a strong mindset of the market.

[Doan9269]

When you are investing on a long time approach, you stand to be on a better side because you are not taking much risk on yourself than just to hold your coins until it is more profitable before you could sell, but when you are trading and appear to be a kind of trader investor, then always misses out upon every trade you engaged and end up on loss, it could be that you are just taking a risk, which some may termed as gambling, I know that this is not because it is not possible to lose when trading. Still, it must not be more often than when we are profitable, except when we go on a long-term investment to hold rather than trading.

[Dreadboost]

Investment cant be gambling although, remove your blurry thoughts from that belief.

Looking at candles during investment is nothing wrong. Each investors have their reasons for looking at the market charts everyday. Some of them are thinking of how to buy more Bitcoins and ways to increase their income source.

Investors that are in for the long -term at times don't feel reluctant in checking the price. The joy that comes with having a reasonable sizeable portfolio can lure you into checking the charts everyday.

[Son Of Blockchain (SOB)]

 I was expecting a good explanation that would convince me that there's a blurry line between Bitcoin investment and gambling but you didn't mention any, you only talked about how people with the intentions of investing switch to gambling due to uncontrolled emotions and volatility. I guess those are not the blurry lines right?
 A good example of a thin line between Bitcoin investment and gambling is that profit is not guaranteed from both, that's the kind of things I expected to hear from you, not diverting from the subject matter.

[fredericktaylor]

Because, the hard part of bitcoin investment is not the tech behind it, but the psychology. Fear, Greed, Impatience and overconfidence kill good strategies faster than market volitality ever could, am I right? So what’s biggest threat to your long term investment: Market volitality or the inability to control your Emotions & follow your plan.

You said it well, I understand your talk.

From my point of view, market volatility is not a big problem in long-term investment because if you buy Bitcoin consistently, market volatility is nothing, but in the long run, it is very important for an investor to control his emotions. Buy Bitcoin with a long-term plan and holding it for a long time, market volatility can never have a big impact, but if the investor cannot hold Bitcoin for a long time and gets disappointed in the middle, it can become a big threat for the investor. Emotional decisions always lead people astray, so it is Important for an investor to have a long-term mindset to hold Bitcoin for the long term.

[Marvelockg]

This is why, unknowingly a lot of those who set out to invest become traders. I’m perfectly okay with individuals who trade stocks but they have tested strategies and know what risk management means. Trouble brews when those that aim to invest become traders through making decisions without a plan.

Before you even start this discussion, you have to make a clear distinction between Trading, investing and gambling and when relating either trading or investing to gambling, you have to accept the fact that both concept are not the same at all. An investor in bitcoin is generally an intentional person that is not easily swayed by trends and popular opinion like it is the case with traders and gamblers. as a matter of fact, most of the things that is obtainable with gambling does not find application in trading and that is why it is not even right to use investing and gambling in the same statement.

An investor that is resolved to remain committed to his investment regardless of popular opinion will attain his investment goal. a gambler and trader are short termed in their approach, that makes the difference between these three far too obvious.

[Curious T]

There is no invisible line between investing and gambling. There is a clear line, even though it's thin, but people just don't want to pay attention. People want the quicker route; they don't want to learn, be patient, and put in the work. There are no shortcuts in certain things. Some people may do the shortcut route, and it may work for them, but that is exactly how gambling works. It works for a very small percentage of people and fucks up the rest.

If you want to gamble, then go to a casino, but if you want to invest, you have to be ready to be patient, study and understand what you are getting into.

[liasbaa]

Know at what point that line can blur in you.

• If you apply excessive emotion while accumulation Bitcoin and make very quick decisions and use leverage. After a few days when the red candle get long, the fear of losing capital starts to work in you.
• When you accumulate Bitcoin outside your financial limit. If you cannot keep yourself to income and expenses range, that line will gradually blur.
• Even if your target is long, thinking yourself a more experienced investor by analyzing the market for a few days is another reason for that line to blur. There is a tendency towards short term trading.

In conclusion your target in Bitcoin should be 4-10 years and during this period, the DCA method is the best strategy to go to the over accumulation stage. Accumulate Bitcoin regardless of the price and do not put excessive pressure on yourself because if you do not ignore your financial capacity, you will easily find the line between investment and gambling clear.

[igebotz]

https://bitcointalk.org/index.php?topic=5571009.msg66274851#msg66274851