Whether we are talking about shore term or long term, there is no guarantee of profit, yet I frequently like to suggest that we are not really investing unless we are planning to stay in at least a whole cycle...otherwise there is just an attempt to play the swing.. and even someone with a 4 year timeline might be trying to play the swing of the whole cycle.. which I would not really consider that to be investing either..
But any event, anyone who has been investing is advantaged by having had been investing... surely you are correct about that.
So then the next question for everyone else is that if they have not been investing, then they have to figure out if they are able to establish some kind of confidence regarding their disposable income and if they have any of their disposable income that they are able to allocate towards bitcoin.. even if it might ONLY be $10 per week... it is likely better than nothing.. but surely, I like to suggest $100 per week, even though I know that some people do not have that level of disposable income, so they just have to figure out how much disposable income they have and that they can allocate towards bitcoin in order to have good chances of having more options for themselves 4-10 years or longer down the road.
Well nice to for suggested, Your advice seems to work, but when a person has a weekly income of $100 or less, I think they should follow the DCA method and deposit at least $10 per week. After 10 years it will be seen that he has been able to make a good profit.
What I think is most important here is that if a person wants to invest even $10 per month, then after 10 years he will be different from others and profitable.
I was not saying that the person has $100 per week income. I was saying that the person has $100 per week that he has dedicated to investing into bitcoin, which presumes a much higher income since we should ONLY be investing from our discretionary income.
Of course, there is another guideline about trying to save or invest 10% or more of your income, which surely is another kind of target that a person could have so then there would be an attempt to make sure that expenses are going to be less than 90% of the income, but then investing 100% of disposable/discretionary income is usually not a good idea until a person has gotten all of his shit together regarding cashflow that includes considering cashflow variance, emergency fund, reserves and/or float.
If we go with your example of a person who has $100 per week income, then that would be something like $400 per month - so surely there would be needs that all of the expenses would be less than $360 if he was going to choose to invest $40 per month or $10 per week into bitcoin (which yeah is 10% of his income).. now if that same guy had expenses that were $360, but he received a raise or a promotion or was able to increase his income to $800 per month, then maybe his expenses might go up too. .but he would be in a position to potentially invest a higher percentage of his income into bitcoin.. which has to do with refiguring what is his disposable/discretionary income. and surely if the guy is investing into bitcoin, then he likely need to establish an emergency fund that is 3-6 months and also some reserves so that he does not have to dip into his emergency fund unless it is truly an emergency.. so if the guy has expenses of $400 per month, then his emergency fund should be a minimum of $1,200 and perhaps even up to $2,400 and perhaps the first three months would be the most liquid in cash or something like that and the additional amounts could be a bit less liquid as long as he could get it within 3 months. as he is using his liquid portion of his emergency fund.
Of course, how much and how long a guy is able to invest into bitcoin is going to make a difference, but he also has to figure out ways to stay in the game and to attempt to be as aggressive as he can but without over doing it. and another part is to get off zero and get some kind of a regular practice of investing at whatever level he can to get started and then to put various systems in place to keep him investing and keep him in the game at whatever level he is able to and he can adapt as he goes if his income goes up or his expenses go down or whatever might end up happening..
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From what you have explained here I understand that we can only buy bitcoin with the money that we are not going to need and not going to need in the next 4-10 years or as long as we are supposed to be in accumulating bitcoin cause we don't want a situation where buy we out ourselves under financial pressure cause we strain our expenses or other stuff just to invest in bitcoin without having proper preventive measures to ensure we are not going to dip our hands back in that invested bitcoin.
And building my emergency which should be up to 3 months or 6 months which should be enough to cater for any emergency and I should not use them for any reason other than real emergencies.
Yep.. that sounds right.