Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Sim_card
on 21/05/2024, 15:37:37 UTC
⭐ Merited by JayJuanGee (1)
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.

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.

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 less 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.

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 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.