Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy Buy Buy or Sell Sell Sell?
by
Mayor of ogba
on 06/07/2025, 11:01:04 UTC
⭐ Merited by JayJuanGee (1)
Hmm… you’re still not getting the point, all you need to start is that extra little money you can afford to lose which is your discretionary fund,
You have a very poor mindset of what it takes to successfully build and sustain a Bitcoin investment. First, you should adjust this mindset of investing what you can afford to lose because such mindset will only make you afraid of even investing in Bitcoin because you cannot intentionally put your money where you will lose it. There was a reason it was recommended to invest only discretionary income because that is the money you can keep
For someone who has a rich mindset of bitcoin investment and yet you don’t know what the phrase “afford to lose” means. No one goes into investment expecting to lose, that’s not what I’m talking about or what the statement means; it only means your protecting your financial well-being and managing your risk. And I even added which is your discretionary fund. Dude didn’t you see that? Or you’re trying to support what you don’t understand eh?
How are you a Senior member when you don’t understand this simple phrase ?
Discretionary income is not the amount of money an individual can afford to lose. Discretionary income is your total income minus your expenses for basic needs.
Is like you are a bit confuse here buddy, you said that discretionary income is not a money you can afford to lose, if that's the case, then what is discretionary income?
Because in still your writing, you said that discretionary income is the money left after your basic needs have been taken care of, which is very true, in Bitcoin investment it is always advisable to invest with an amount you are willing to lose, and it's only your discretionary income you can afford to lose, that is why it's recommended when you want to invest in Bitcoin, so am surprised by your statement that discretionary income is not a money you can afford to lose.

When we are referring to an amount of money that a person "can afford to lose," there is a psychological component.

Of course, a person could invest up to 100% of their discretionary income into bitcoin, yet if they make mistakes and they have no money left, then they might accidentally use money that they need for their expenses, so there can be dangers in using 100% of your discretionary income for investing in bitcoin.
Yes, you are certainly right sir, using 100% of your discretionary income to invest in Bitcoin might land you in trouble financial, but am still curious, if you already have a good emergency and reserve funds in place that can carry your financial burdens for more than 3 months, would it still be wrong to invest like 90% or 100% of your discretionary income?

Another thing am curious about is, I initially thought that our discretionary income is that money we can afford to lose because it's the money left after all expenses of our basic needs has been taken care of, so I really want to know, how best can we discribe that money we can afford to lose from our weekly or monthly income?

If you invest 100% of your discretionary income, you will always be dependent on your emergency fund. For example, we never know what will happen in our lives. Suppose you need $100 a month for your son or daughter. But this month your son or daughter will need $200 because their school fees etc. will be more this month. But you did not know that if you had budgeted $100 this month like every month and you invested 100% of your discretionary income, then you may have to take money from your emergency fund or take a loan from someone. So that you do not have to take money from your emergency fund for such small amounts, it is better to keep some money on hand. If you needed half of your emergency fund and then you had a financial crisis, you would have to sell your holdings.

It is good to buy aggressively, but not so aggressively that you put your holdings at risk.
Does it mean that if we invest all our discretionary income that is a bad choice of investing in Bitcoin, honestly speaking I don't think there is anything wrong if we choose to invest all our discretionary income into Bitcoin, considering that out discretionary income is money left over from our income after paying our expenses, Well I know sometimes life is unpredictable and we could make mistakes investing from our income which is meant for expenses, that is where we could fall into some trouble.
Perhaps what if an investor have a good financial management with an emergency funds and a reserved funds to help In sustaining your investment. Sometimes most folks would want to accumulate more aggressively, should that be discouraged as well because most guys would want to accumulate aggressive with all there discretionary funds, I absolutely think that investing in Bitcoin with all your discretionary income wouldn't be catastrophic considering that an investor have a good financial management. Talking about emergency funds which is meant for emergency situations we cannot dispute the fact that situation were we would attempt to use them wouldn't arise, and we also have reserved funds to also help for circumstances were you could imagine we have to access this funds, a good financial plans and management is important to sustain this situations
Yes investing all your discretionary income is a bad choice because as human, we have a lot of unforseen expenses than our seen calculated expenses and so spending all your discretionary fund will keep you cashless, and if cashless and Bitcoin has a slight reduction or a sudden dip in price and you wish to buy more, from where are you going to the extra fund to accumulate more, because you will wish to buy more or your personal expenses how are you going to survive, if the pressure is much, you will have no choice than to sell part of your Bitcoin.
If Jostern wishes to use all his discretionary income to invest in bitcoin, I see no wrong in that because discretionary income is leftover money after paying for your monthly expenses; it can be used for unnecessary things, and therefore it's better for Jostern to invest all his discretionary income into bitcoin than for him to use part of his discretionary income on things that will not bring him profit in the future, like clubbing and buying expensive clothes.