Any newbie who categorises short-term holding and trading as the same thing has a long way to go as they need to learn the difference and make a decision on which one they want to do and which one will favour them.
The newbie is right I don't think there is a different between short-term holding and trading they are just same thing since there objective will be to sell Bitcoin in a short time without accumulating and hodling for long is not even advisable to go into Bitcoin investment with the mindset of trading Bitcoin or for a short time because you might run at lost and the risk is much though people can choose what works for them.
We should not be presuming that short term traders or traders are going to sell bitcoin at a loss, so they can enter into their bitcoin trade and then they sell at a profit. They make more dollars than they had previously.
Surely, many of us understand that one of the greatest powers of bitcoin plays out over 4-10 years or longer, so those who are fucking around trading are not likely going to be losing money, even though they likely will not be able to put themselves in as strong of a financial position down the road as compared with those who figure out how to have bitcoin included into something that they likely continue to hold onto, and who don't start to sell any of their BTC until much further down the road.. including that sales of BTC may well still end up being measured, and the asset that is sold ONLY after running out of other kinds of cash or assets to sell first.
So people can do whatever they want, including getting caught up into the group of people who ended up selling way too many bitcoin too soon, rather than staying focused on NOT selling any bitcoin until they have accumulated enough, and/or more than enough, which can take quite a few years, including 4-10 years or more to get to such levels of BTC accumulation.
The only way to reduce the risk of losing in Bitcoin investment as an investor is by engaging in long term Bitcoin investment, holding your Bitcoin for long will help you relax and stop panicking, those who are into Long term holding Bitcoin volatility won't be something they should be afraid of because the longer you hold Bitcoin the more successful you may become.
Having a long-term target while investing in bitcoin is the best for any good investor but it doesn't really reduce the risks of losing because since bitcoin is a high volatile coin, volatility can push the price downwards at a time when an investor feels that the number of years he had in target has come, so it may be at a time when the price is experiencing a DIP due to an event that may occur at that particular period of time which means he has to be more patient in order to allow the price bounce back which is some cases, the investor may feel he is spending a lot of time waiting for the price to gain strength again which can make him to panic in fear that he may incur more losses if he waits further. This is one of the reasons while i feel people should not set the number of years they want to hold their bitcoin before they consider to sell part of it because it can appear at a time when the market is bleeding. I think the major reason why we hold for long is to build our portfolio and not specifically on profits making.
When we start to get reasonably close to our goal, we might start to get stressed which may well be a sign of over accumulation, and surely it may be better to start to shave off some profits here and there rather than NOT.
None of us can really tell anyone else how much to allocate in those kinds of ways, even though it appears to me that guys sometimes will get too caught up in BTC's spot price, which can fly all over the place, and I personally believe that valuating based on the 200-WMA gives much sounder estimations of value and potentially can also help guys with the employment of price based and/or time based sustainable withdrawal systems, even if they might start employing such withdrawal systems prior to their reaching fuck you status (or whatever might be their BTC accumulation and/or over-accumulation goals).
There can be a bit of a contradiction of ideas, since sometimes guys have to be careful when they have so much of their networth in bitcoin and if they have been in bitcoin for a couple of cycles, then if they have not diversified into other assets, they may end up reach some status of having had invested more than they can afford to lose, while at the same time not having had yet reached their BTC accumulation goal or over accumulation... so it can be difficult to describe being in this kind of a situation in generalized ways since each of us likely has to figure out that we are not causing too much emotion for ourselves in regards to out bitcoin investment, even if we also might be trying to reach a status of reaching our accumulation target and/or a target of being in a status of overaccumulation that frees us to be able to sell extra BTC without having to worry that we no longer have enough.
I cannot really say how each guy needs to balance out these factors, since we should try to set up scenarios that we are not becoming emotional about our investment, so in that sense we might need to either shave some off or sometimes invest in other things and just let the clock run while there are up and down waves along the way, and if we get to the time that we need to start to withdraw from our BTC, but BTC is in a dip phase, then either we modify our withdraw amount or we delay our withdrawal amount or maybe we have other assets that we can draw from during the time that the BTC price might be in a dip.. yet is also seems that if we have been in bitcoin for a couple of cycles, even if the BTC price is in dip, we still likely should stil be in good profits.. yet none of that part about being in profits is guaranteed, either.