Newbies can also get discouraged if they invest in BTC at the wrong time. I think newbies should divide their capital into four parts an invest one part in the beginning. When the price of Bitcoin falls, the second investment can be made with a reasonable difference from the price of the first. therefore it is important to know about the investment percentage as well as the right strategy and right timing.
Yeah you're correct, actually these your explanation reminds me of DCA strategy which works almost as the way you explained it, because a Newbies may not really understand the basis, concept and fundamentals of Bitcoin as such over investing on Bitcoin were as they could ran out of funds but with the help of DCA strategy it will help on risk management and structure the psychology of a beginner to invest slowly but consistently accumulating Bitcoin with a plan to open a reserve funds account were as if any needs arise the reserve funds will cover for it, so this is actually the best method for newbies to use.
This strategy is very beneficial for newbies as well as experienced people, often even experienced people buy all their capital in crypto currency at once. Sometimes, when the price of Bitcoin falls significantly, people think that the price will not fall further from here, and in the lure of profit, they immediately invest all their capital in Bitcoin or any crypto currency.
That's why I think always keep 30% of your fund in reserve, so that anytime the market crashes, you have the fund to buy. Often times we buy crypto currency with all our funds, after which the market often falls further, and we don't have any funds to buy, and a good opportunity is lost.
They always made wrong calculation regarding to what possible movement bitcoin could go that's why they experience to lose by continuous dumping since they are not so careful monitoring the market sentiments of people especially the news released by the press. To many situations need to consider that's why for starting up newbies they need to invest small amount first before taking big step on trades so that if market will not favor to them they still have many chances to recover since it didn't hurt much their whole capital.
We always need to have reserves since we can study the market well and for sure with that we can gain a lot of experience which can help us to became a more better skilled trader.