This s the most important and effective point. An investor should use such amount of money for investment that his life will not be adversely affected if the money is lost from his life. Yes we know money is very important in every person's life but still but to achieve success in life people have to take financial risks. Many times investors do that they invest all their savings at once and get excited when after investing they don't see good results in a short period of time.
Investment but not job that here I invested some amount of money and at the end of every month my profit came from it. Before investing, investors should invest with a clear understanding of the fact that after investing, his money can be lost and profit can be made. Investing does not mean that he will make money for sure. But if you have enough patience and believe in the market, investors can definitely get a good result at the end of a certain period of time.
Investing what you can afford to lose means that money which you can dash out, that money which you can use for ice-cream, that money which you can use for shawarma, that money whish you can use for drinking without having any effect on your pocket or any other of your expenses or having effect on your emergency and reserve fund,
any amount you spend or use for investment, no matter how small it is must surely come from your discretion and not outside of your pocket because this investment is a constant investment that will last for a long time.
talking about investment without affecting your pocket looks like lump sum amount that you invest once at ago but you cant associate it with DCA, because such amount usually come unexpectedly.but in DCA investment strategy you must surely use your discretion fund for investment because DCA fund comes more frequently than the lump sum fund. examplelump sum amount can be like a bonus amount won, just like the recent concluded award fund we won at the bitcoin award contest 2024/2025 $150, this amount can be invested once at ago into bitcoin because its not a monthly salary, but i can be investing some portion of my weekly campaign amount to bitcoin as DCA because it comes more frequent.
Irrespective of your strategy in your investment non is meant to affect your pocket and DCA or lump sum amount must largely and surely be considered to be a discretionary income, secondly a lump sum amount is not only subjected to come in an unexpected manner it can as well be expected, the emphasis is that the amount is huge and consider to be a discretionary income which can be use right away.