Our motivation to sell should not be driven by the profits we see in our investment, but the termination of our holding period. If we target profits only, then we are not much different from traders, rather you should be more focused on reaching your accumulation target and/or even attaining the status of over accumulation within our holding period. It is a very good practice to keep enlarging our portfolio regardless of market sentiments and movements since it enables us to remain focused and dedicated to our ongoing accumulation journey. When we have more than enough coins and the profits already compounded, it surely sounds like a better deal and by the end of our holding period (4-10 years or even more), we can choose to keep holding or if we are satisfied with our stash, we can initiate some sustainable withdrawal practices and gently begin to live off our bitcoin investments
I can never do that. No matter how much I collect, it's never enough and I never want to sell. I'm sure you won't want to sell after you've invested a lot of money into Bitcoin, because you'll regret it whenever you sell. Bitcoin is always finding a new top. Those who sell are always sorry.
The best thing is to keep buying and never sell until you retire. If you are retired, of course, you can live a comfortable life by selling it piece by piece. But if you are still working, there is no reason to sell early if you are at a younger age.
This is the best description to when an investor can start thinking about selling his bitcoin stash. I mostly read articles talking about 'Over accumulation' and I wondered how a person can get to an over accumulation stage. Does having a sum total of 1bitcoin make it over accumulation or maybe having 10 bitcoin?? There is no complete justification to selling part of all of your bitcoin stash as long as you are still working. I believe bitcoin is supposed to be seen as a retirement plan from where you can draw your pension at intervals.
There is no such word as over accumulation of bitcoin in real sense and this should be clear. Is there a time you sell that price won't home any longer?? The anthem is to buy and never sell. Hold for as long as nature allows you without emergency that could drain your backup funds and emergency funds. The longer you hold the better it becomes.
You are absolutely correct but I also want to let you know that there is something like overaccumulation stage and this overaccumulation stage varies with individuals target and plan, what I am saying in essence is that my overaccumulation stage may not be your own overaccumulation stage because of the level of our source of income and capacity. Overaccumulation stage is that stage an investor feels he or she has tried and then even without investing for sometime they already have enough ( sufficient) but that doesn't mean they will stop accumulating rather the speed at which they were investing with will be reduced and the pressure will also be reduced that is what overaccumulation stage is, it is that stage you don't have to rush anything, that stage you can invest whenever you like.
For me over accumulation stage is determine by our standard of living, my overaccumulation stage not being your own overaccumulation stage is because we have different standard of living and not because of the level of our source of income and capacity like you said.
For example if my standard of living makes me to spend $200 every day what will be over accumulation for me won't be same with someone who spends $100 a day or every 2 days, so is just about our different standard of living there are some set of people having 1 Bitcoin is nothing to them they prefer 10 or more because of there standard of living.
And again it can be determine by different future standard of living by different people, some set of people who are not living a high standard may wish to live a high standard and there over accumulation won't be same with someone who just wishes a medium future standard of living.
I always like to describe over accumulation phase with respect to quantity and not necessarily daily expenses. Yes, we always have an accumulation target at the beginning of our accumulation journey and going well above it can suggest the percentage of over accumulation we have come to achieve.
lets take for example, my initial target is to accumulate 10BTC within the range of 20 years, if I am able to achieve a cumulative stash of 12BTC within the said period, then I am 20% into over accumulation stage, if I got 14BTC, then I am 40% into over accumulation stage.
If I have initially planned the latter part of my life around the 10BTC target and I end up getting 14BTC, then I have a 40% additional cushion to leverage upon. It is still possible to reset your accumulation target from the 10BTC plan to 15BTC and get back into accumulation phase, surpass it and achieve overaccumulation stage for the second time. it all boils down to your target.
This is very educative as I've come to reconcile the context of over accumulation from this. The accumulation process and target is key to achieving the accumulation goal which whatever comes later is an over accumulation. But after over accumulation, the person sells and would he now limit his investments to buying dips? Or would he proceed later to buy at a loss? Or would he stop accumulating and maintain his accumulation target?
This is some of the few reasons why I argued the existence of over accumulation as long as a person is still working. Setting a new target could be an option as you have mentioned. Just to keep a person in the system. Accepting and over accumulation may lead to a sell, sell, sell, line of action.