Topic: Buy the DIP, and HODL! - page 235. (Read 136011 times)

Well, you cut off an important point that I conveyed, where the point in the post was meant to strengthen a description of my idea in conveying it, but that's okay.
So it's like this if in investing you can't manage your cash flow as well as possible where it is linked in time. Where is the best time to do it aggressively or stick to the DCA pattern, which of course you still carry out your purchasing strategy regularly with the addition of executing it aggressively.
On the other hand, I generally explain thoroughly to all groups that there are poor investors or rich investors who act aggressively because in that point I said that if you get additional income then you can use it to buy aggressively which can be done by anyone.

So in this case of course beginners can also act aggressively when they have additional income. Of course, it is good to do this simultaneously with DCA purchases and also aggressively. The main goal of aggressive buying is of course to increase BTC holdings when we have a downward moment at the same time. Of course, is that increasing BTC holdings that we can execute will make us more enthusiastic in the future to repeat this by buying aggressively when there is additional income.

In another point that you conveyed where you put a word about the profits that must be taken, of course this is in contrast to our planning, namely to hold in the long term.
Yes, I understand that sometimes explaining in detail is quite difficult but you can fix it later. The important thing is that we are not fussy and emotional about what we do.

You are right been aggressive is a choice, though over doing it in Bitcoin investment can be risky if you are not knowledgeable about it, for it is important to have a solid understanding of the market. Some time aggressive approach can be good if one can have enough confidence in long term potentials of your BTC investment.

Aggressive approach can also be good in Bitcoin when there is enough cash flow or a good paying job for it will allow you to upgrade your BTC investment method because having a steady income can help you in the process to invest more and more. For it is important to consider one financial capability before investing aggressively on BTC as long as you can be able to manage your investment well, an aggressive approach can also bring about good result in Bitcoin investment.

Buying beyond your capacity just to meet up means that you are gambling because you are over buying aggressively, and it will affect you when an emergency occur. Such investor will always go back to sell his bitcoin because he bought beyond the capacity of his discretionary income. Making it an unethic way of buying aggressively. You can buy aggressively when you have the money to do so, you don't force yourself to buy aggressively when you don't have the money to do so.

Your cash inflow, discretionary income and responsibilities together with the size of your emergency funds is what should be put into consideration before buying aggressive. Mr A responsibility might be smaller to that of Mr B, and that will determine how much he will put into bitcoin weekly or monthly using DCA.

Yea of course, you can buy aggressively during the dip and that is if you are prepared for it, but as for me I buy aggressively at any price level just like the way I DCA. I only increase the money that I use for DCA to accumulate aggressively within the period of time that I have the money to do so.

Buying aggressively depends on an investor choice , buying beyond your capacity just to meetup can be considered as buying aggressive. Aggressive buying can be risky individually because every investor have their different ways of planning before buying, we can’t just judge in term of  aggressive buying being so risky. Aggressive buying can work for Mr A meanwhile Mr B is not getting it right, basically because Mr A will settle every necessary needs and set aside every funds to back up the investment before going ahead to buy while Mr B can decide to skip the planning process just to meetup and buy with everything. Most times, whenever there’s a decline we investors consider the price fall as an opportunity to buy and hold definitely it’s the right time to accumulate but, accumulating should not go beyond our discretionary income as mistakes can happen during times like this. Aggressive buying can be practice buy anyone but all depends on the available funds for accumulating.

I believe what you mean by aggressive investment is huge amount of investment i guess, because contextually I might be misunderstanding you. moreover if there is 10% reduction in price it then means, it is more like a dip and that is when investors should be encouraged to aggressively accumulate as much as they can, not the other way round as you put it.
 
Your also saying that it is advantageous to be a long-term holder than an aggressive investor. maybe I need to ask, do the two investors not get the same value for thei investment when there is profit or increase in value?

You must have made the right decision because from what you said I understand that you believe in long term investment and you have talked about long term investment here. Of course investing in a long term plan can give an investor good returns if that investor can be patient. After investing, the market will not only continue to grow positively but the market will turn negative and go down. If we fail to hold the investment for a long time with this small risk, then we will never reach our desired goal. But if an investor can hold the investment for a long time by accepting everything then I believe he will definitely get the profit as expected.

There is no difference and I think even though we act aggressively it can also be profitable if we can enter at the right time, especially if we are planning a long-term investment, I don't think that is a problem.
However, regarding other issues regarding personal money management, I think everyone feels this and it is not the impact of investing, therefore we must be able or smart in managing finances and setting aside them for investment so that it doesn't become a problem.

We must first study every investment we make and if we are sure of the profits we will get in the future, I think there is nothing to be afraid of anymore.
Especially with Bitcoin, many people have missed out on taking advantage of previous price increases, maybe that could be a lesson so that in the future they can share in the experience or be one of those who get big profits when the price soars high.

I guess I can explain what aggressive investing is when it comes to investing in bitcoin. For one to be able to invest aggressively, it depends on his discretionary income and the level in which his emergency funds has gotten up to. It is said that our emergency funds should be up to at least three months. Someone that has built his emergency funds up to 6 months level can become more aggressive in buying bitcoin than someone whose emergency funds is 3 months if they have the same discretionary income.

Now back to buying bitcoin aggressively, it means that if you have $200 as your discretionary income with 3 months emergency funds available, reserve funds and float funds. That investor chose to invest only $100 weekly or monthly into bitcoin, and he sees that the balance of $100 is just lying there and he does not need it for any expenses for long. He can then decide to say I don't like the way my bitcoin portfolio is growing, and he feels like to increase the money with he is using for regular DCA weekly or monthly which is $100 to maybe $150 or $180. Since he does not always touch his balance of $100, he can start buying bitcoin with $180 for straight 3 months. You will see that the quantity of bitcoin that he will accumulate with be higher than when he was buying with just $100.

This is why if you have the funds to invest aggressively, you don't need to think twice but do it, as long as you are not overdoing it to the extent that you are left with no funds to take care of your needs or emergency that arises. This is why the level of your emergency funds helps an investor to be more aggressive in accumulating bitcoin. I believe that so many early bitcoin investors that had the money to buy bitcoin aggressively then, and did not take advantage of such opportunity are regretting it now that bitcoin price is 71k. This is why if you can invest aggressively you do it, than to invest in a whimpish way.

You have made some good point there @troytech

I think understanding what aggressiveness might mean theoretically can be a little trick since some might see it to be giving too much to bitcoin at the expense of other thigns, but rather I feel it has more to do with our financial situation and how balanced we are even after giving much to bitcoin, and i think everyone has to find out at what point that they are overdoing their aggressiveness, there should be a balance to aggressiveness so we don't end up overdoing it and spoil everything in the process.

I Don't agree with your concept of aggressiveness, I don't think aggressiveness refers to investing into bitcoin with all you have or like some crazy investor that is throwing all his cash or savings into bitcoin, IMO it's more like investing not more than you should and at same time not less than you should, i can't really put the definition in words since I myself am still trying to grable thigns well.

Let's assume I have a toral of 200$ left as my disposable income after doing all my cashflow and deducted or removed my expenses, and I decide to invest 150$ of that into bitcoin that can be me beign aggressive or let's assume another person earning up to 4000$ and after removing his expenses as a bachelor has a 2000$ left as his discretionary income, normally we should keep in mind that we have to invest from here, kero float and also keep some reserves for later, he can decide to invest a whole 1k or 1200$ into bitcoin and keep halve as floats and the rest as reserves and if he ends up not using his floats or all then he can decide what to do with the rest.

I can't really find a way to explain my understanding of aggressiveness with words, but I think if investing in bitcoin is a priority or something that you desire to or want to achieve then that way you would want to give a sizable percentage of your disposable income to it or even all, that is my best way to explain what I understand by being aggressive and if aggressiveness is practiced rightly then you have no worri about it beign risk, they is a balance and that is finding what you are comfortable with.

The thing is that in as much as someone or rather an investor is rich doesn't mean that they cannot run into trouble if they are investing aggressively, however even if the price drops 10% is not actually a good reason to accumulate aggressively but instead you can possibly adjust your DCA accumulation were by if you normally accumulate a certain amount of Bitcoin on a weekly basis and it happen that your source of income has increased you could possibly increase your accumulation amounts that will be well suitable for you.

Though I no that most investors have there way or perspective they feel they can take advantage or facilitate there investment on Bitcoin but it will be very bad that they will get overwhelmed and invest all they have without realizing that in as much as long term holding doesn't really involved risk but aggressive investment could be regarded as one of the risk or barrier that could have a negative effect on there investment plan.

Well, I don't seem to get what you said, but the fact remains that, as a bitcoiner who is using the DCA strategy to invest and accumulate Bitcoin (according to what's on your portfolio), even when Bitcoin is decreasing in its price, you still have to continue buying it as DCA method gives everyone that is using it the ability to always buy the specific amount they have budgeted already even when Bitcoin is getting low. However, during the time Bitcoin is low, everyone that's in to it won't want to miss it because that's the best opportunity to buy. And again, as you are using DCA to accumulate Bitcoin, you have to remove your mind from the price Bitcoin is heading to and where it is or where it was. With that you can continue buying Bitcoin constantly without any challenges (, if you keep some amount separate from savings and from your investment).
Well, I understand this perfectly, and as most of us already know what's up to investing in Bitcoin for the long run, we have to keep a lot of money that can handle some cases perfectly in a way that we won't have to use the money we already budgeted for our investment. This is also the best thing for anyone that's ready to build his investment properly. One can't successfully use the DCA method perfectly if one doesn't have any money for emergency issues. Moreover, Bitcoin isn't an investment anyone would rush into thinking that he could make quick money from it. I believe everyone here knows the reasons why the DCA method is perfect for investment. That's because, as Bitcoin is not a get-rich quick scheme, DCA is a method that allows us to gather the little Bitcoin we can in a gradual process. If you are the type of person that doesn't earn a lot of salary that can fetch you 1 BTC in 4 to 6 months (or in a year time), and if you really want 1 Bitcoin, you don't have to stress yourself, buy little by little, so you don't get stuck when emergency cases arrives because as a bitcoiner and human we are, there might be a day some slit money problems will come up. And it's not proper to buy bitcoin with a lump sum strategy because it doesn't allow you to buy Bitcoin regulary.

Bitcoin's price has risen quite a bit, gaining 14.6% in the last seven days and 5.5% in the last 24 hours, currently standing at $70,658.77. I hope the price of bitcoin will continue to rise now, and this pumping will go a long way. We should continue with DCA, in no way should we stop our investment. Whether the price is high or low, we will continue to invest certain amount in DCA method on weekly or monthly basis according to our income and increase our investment portfolio, so that it will give us a much better return in future.

You're right Mate. I always lay emphasis on the need of having a "TARGET" while accumulating, with a system that will help you achieve that. When it comes to aggressiveness it subjective to everyone how they go about it, which leads to the target set and how the other perceive Bitcoin to be.

Some just accumulate for accumulating sake without any direction or plan. Have a plan with a target, ensure continual investment.

I totally agree with you.
However an investor who set target of 3BTC in six years mostly be more aggressive than another investor who have no target.
Alot of investors have their accumulation goal, and that same goal may determine how aggressive one need to be in accumulating Bitcoin, at first one don't have to be over aggressive in order to meet his Bitcoin goal expecially an investor with low financial stability. That why the range of holding and accumulating from 4-10 years is a nice one because it would give one enough time to accumulate some good quantity of bitcoin without being over  aggressive in his Accumulation. Because when one his being over aggressive with no proper planning and low financial stability, he or she may endup not having an emergency funds in the process because you being too aggressive towards your accumulation, which may lead to one depending on his investment whenever an over whelming expenses hit them which may lead to one having the habit of tampering with his investment.

Maybe depends on what you do since if you are just an aggressive investor without having plan then maybe you will lose a track for certain situation like dips since this could bother your focus especially if we see some massive dumps happening. That's why we aside from having a plan for future, discipline or controlling our emotion is important to have so that we can make sure that everything will go according to our plans.

Its important for the investor to familiarize the methods they want to use so that there will be no tilting if sudden situations happen. But what's more important is we are dedicated to our investment done and totally hands on of everything since if we are lazy to find new things that can help us to maximize each investment decision we do especially those other things that can help us get another extra funds to had something to add up on our bitcoin investment. So investor should not stick only on what they know but rather they should try to seek more reliable info's since this could really make them became more successful in long run especially that there's a lot of things need to consider since bitcoin is truly unpredictable.

There are times when acting aggressively when prices fall by 10% or when we get additional income.
On the one hand, cash flow must be stable without becoming a burden when we make aggressive purchases.

In this case there is a good point to run in tandem with the dca pattern where you can buy aggressively without missing routine purchases every week.

In a pattern like this of course there is reserve money for the DCA pattern and there is money from additional income to make aggressive purchases.

In adjusting the plan to keep it running smoothly, of course we don't focus too much on acting aggressively if we don't get income in that month.

I might start to understand your concept and I'll try to explain what I understand here if I am mistaken please correct, due the fact that we are investing from our disposable income which could turn out to be some very little amount or a little percentage when compared to our total income we can't can't that capital, cause when the word capital is normally used it is used in terms of wholeness, like if I wanted to start up a business and i don't have the complete funds to start, i can't go around calling my first savings a capital since its just a part of it, but if I have saved that up and it has become large and enough to start my business then I can call that a capital, so if I were to relate this to buying bitcoin with our disposable funds, i can understand that what we are doing with DCA is just like Pilling up small funds to get to a point that we have invested an overall sum that we can call a capital. Or in some sence if someone were to start his investment with a lump sum of let's say above the very average DCA amount which could be around 4k then we can call that that capital, im picking this part from the part I highlighted in your third paragraph.

Replying to @red4slash
Sure there are ways we can record our ongoing investments and it has been brought up and confirmed to be helpful so many times even more than just for knowing how much we have invested in bitcoin, this can also help us go back to repharse or steps and know where we have made mistakes and apply correction in our future plans, you can use an excel software to keep record of your investment actions or I myself I use a journal, but once I have a laptop as i planned to get one even if I have quite been unwilling to get one I would start using excel for that purpose, I just seem to enjoy the traditional pattern of keeping record.

Exactly, being aggressive is ones choice and one can use any method of purchasing bitcoin to be aggressive as they please. But most people rather prefer DCAing, when it comes to being aggressive. For instance an individual accumulation amount at first was $50 weekly with DCA method. And he or she began to see the beauty of investing in bitcoin, and lateron they decided to increase their Bitcoin allocation. From $50 to $100 weekly inorder for them to hit their accumulation goal fast, in a long run.  But most time some folks Alos choose to be aggressive using lump-summing, even though they where using DCAing before, inorder to coverup some space their accumulation.


One can be as aggressive they can ,but without over doing it, just as  sir JJG usually Said. Because most folks usually make alot of mistakes when it comes to being aggressive, mistakes like using their emergency funds to increase their rate of Accummulation without having any backup plan . Which may lead them tampering with their investment, for instance $500 is someone monthly salary and he or she decided to go all in with it without having any reserve funds he or she can take as backup funds , they may endup withdrawing their investment too early and the painful part is that they won't just withdraw the $500 back they may even endup withdrawing everything from their wallet . That's why is better to keep accummulating with any amount you know you can use at that moment, the main thing is that yah being consistent with your accumulation.

I agree with your point about anyone can argue or debate with whomever they want.

Regarding your question about the idea of "initial capital," you can call your investment into bitcoin whatever you like, and if you are calling it disposable/discretionary income or you are calling it capital, it comes off as a bit strange if someone has an income of $500 per month and expenses of $400 per month, and they are putting $10 per week into bitcoin.  Difficult (and seemingly misleading to me) to call that $10 per week initial capital, but you can call it whatever  you like.

Part of my point, and many guys here seem to "get it" is that if you are starting to invest into bitcoin, and the only thing that you have is some quantity of disposable/discretionary income that you are investing into bitcoin, then likely you are converting your disposable income into capital, especially after many years of investing into bitcoin, but part of the fact that you don't really have any extra money (except your disposable/discretionary income, it is seems strange and misleading to be calling that capital, even if it might later add up in such a way that the "capital" label will start to make more sense.