Quote from: Wind_FURY on Today at 10:40:09 AM

Quote from: JayJuanGee on July 08, 2021, 05:32:04 PM

Quote from: Wind_FURY on July 08, 2021, 09:35:29 AM

Watch John Bogle’s advice in how to invest in stocks and equities, https://www.youtube.com/watch?v=doKsy4itiRE

John Bogle was a HODLer-type, and was the founder of The Vanguard Group.

It’s obviously very applicable in Bitcoin’s HODL-style investing, and he also addressed and encourged a dollar-cost-averaging strategy. BUT, he also said that an investor should “get in right in the first place”. Is the current market the right time to enter? I believe it’s an opportunity, but leave yourself more capital to average down because no one gets it in right unless you’re very lucky.

Of course, there is a lot of luck in investing in anything, but persistent investing creates some of the luck in terms of if the investment ends up going up in the long run. So, in some sense, if you do not have a lot of money to start with it is going to either take a long time or a lot of BTC price appreciation for you to either feel the effect or to become rich off of it, yet at the same time, you should be attempting to work with what you got rather than engaging in overly leveraging kinds of behaviors - and in that regard, bitcoin seems to continue to be one of the best investments out there in terms of considering both downside and upside risk and both downside and upside potential.

So a convincing definition of luck is where preparation meets opportunity.. so yeah, the idea of DCA investing is good, with a wee bit of front loading of the investment (if you can) combined with some levels of preparations to be able to buy on the dip, if the BTC price dips from here or if it ends up dipping at latter dates (presuming that it already went up and then dips at that point).

Do you believe that, “right now”, would be a good idea to front load the investment? For example if you had $10,000 available, would you use all that $10,000 in one trade, then DCA with 10% of your monthly salary?

Let’s assume that $10,000 is 10% of said person’s total networth.

Ok. sure, if we are assuming that the person does not own any bitcoin, then it would be fine to get in, and even though 100% front loading (in terms of a lump sum) is recommended by some folks, I tend to want to divide that initial sum into 3 parts in order to account for trepidations that people might get in the event that the BTC price drops, then they have some of that money for buying on dips and DCA'ing... so the default position would be to divide the $10k into three and to go from there in terms of figuring out how to employ each of the three aspects.

So yeah, if there is also more cashflow coming in on a regular basis in the future, there could be an attempt to put 10% of the investment money (not 10% of the total income) into bitcoin because expenses need to be made and some assessment needs to be made about other investments too, and how to allocate... so yeah, by the time a person figures out their whole budget and how much money that they might have left that is available for investment, then it might be difficult to figure out how much to allocate into bitcoin.

So for example, if we project that a person might have $3k of money coming in, but $2k is necessary for various expenses, so there is only $1k left for various investments (and than might even be a lot to be assuming that anyone is able to feel comfortable spending 33% of the cashflow on various investments), then from that there might be some decisions about how much of that to use for DCA into bitcoin, and other investments (for example maybe they have some kind of 401k with matching funds and there might be a decent incentive to at least put the maximum matching component into that)...

So individuals do tend to need to assess what is reasonable to be putting away and making sure that they have various kinds of funds that would be available for emergency withdraw, and some folks consider bitcoin as part of their emergency fund (especially because bitcoin tends to be pretty damned liquid, relatively speaking), which surely seems like a bad practice in my thinking.. because it is a form of being over-invested (because you should not be putting yourself into any kind of position to have to withdraw from any of your investments - especially bitcoin of a time that is not of your own choosing and we have seen that bitcoin has been very good as a very long term investment - at least so far).. so there should be some cash bonds of cash account that might earn low interest that would be drawn from in the event of an emergency and then during the emergency there might NOT be any ability to continue to invest into bitcoin until the various cash and emergency funds are replenished or on the way to being replenished, first. I understand that hardly anyone creates several months of cash - or liquid funds - (maybe even 6 months or more) to be able to draw from, even though that is a best practice to stop them from playing roulette with their investment money and overinvesting... but many people (probably a vast majority of the population) have few clues about how to invest anyhow, because the ONLY assets of value that they may end up having would be their property, home (if they have one) and a 401k (if they have such option through their employer), and then they have hardly any fucking clue about how to have some kind of investment (and especially the temptation of having extra cash) while trying to build enough restraining themselves power to NOT be tempted into tapping into such reserve funds before it even reaches a level to be able to have other money to actually "invest."

Yes some of us here might be the exception to the rule and have learned how to actually invest, but we are likely a minority and many people have troubles relating to such concepts because they put their own spin on it, which tends to be treating their investments as forms of gambling.