First: You misquoted me since you did not quote the proper location from which you took my quote.. which you should have had linked this one.
Oh okay, Thanks for pointing that out. I did not mean to misquote you..
I am still getting used to the forum and learning as I go. I appreciate your correction..
Second: I am not going into detail about psychology, yet if we are trying to determine the difference between discretionary funds and "the amount that you can afford to lose," then there surely seems to be a bit of subjectivity and psychology involved when any of us are constructing those kinds of limits for ourselves. We likely will get ourselves into big trouble if we become too aggressive in one direction or another, so there frequently seems to be quite a bit of balancing that any of us ends up doing, and many times even folks with a lot of similar objective factors will end up balancing out their actions differently based on subjective considerations and/or comfort levels.
Yeah, true. Psychology is really a personal thing, even if the numbers look simple, how someone feels about risk and losing money always affects what they do. Everyone balance between going all in or playing it safe is different.
Question: Since you have been at this for a long time now, bcus you profile shows you’ve been in this forum since Feb. 2014 and u also said you’ve been into Bitcoin since 2013, that’s a really long time, if only I was as early as you’re lol…
My question is, how do you personally decide when to adjust your investment percentage as the market changes? Like, do you have any rules or something you look out for to know when to scale up or down your Bitcoin buying? Or do you jst DCA all through with a fist amount??
Of course the guys who have $100 or more of discretionary income every week, are going to have more flexibility in terms of how they can employ their money as compared with guys who might ONLY have $10 or less of discretionary income each week, and so sometimes the guys with lower levels of discretionary income might rightfully come to the conclusion that they need to stay more focused on bitcoin as compared with their peers who might have more discretionary income at their disposal. And, they are not incorrect in coming to those kinds of conclusions about the likely need for them to be more focused and even more organized in their finances and focused in their thinking (psychology), yet there still can be ways to redirect focus and aggressiveness and/or perhaps figuring out ways to increase their discretionary income rather than potentially putting themselves into uncomfortable positions due to their seemingly maniacal focus on bitcoin accumulation that may well be ongoingly bordering upon overdoing it. which causes it to seem more like gambling rather than investing.
That’s fact. When you don’t have much extra money, it’s easy to feel like you need to go heavy just to make progress. But if not careful, it stops being investing and starts looking like gambling. I would say it is better to slow down, try to find ways to earn more or manage money better, than to take risks that can mess things later.
You seem to be correct that sometimes we might believe that we are doing the right thing, and then we take actions that we believe are sufficiently correct in light of the information that we then know, but then later down the road, we come to realize that we over did it, and then we end up getting emotional about something that we could have had avoided (or at least minimized that kind of a later experienced emotional impact).
Yeah, it is usually when it is too late that we realize we went too far or took on more than we should have. And when things don’t go as planned, it really messes with the head. That is why i think it’s better to think ahead and try not to put ourselves in a position we’ll regret later.
In the end, each of us chooses our levels, and surely most of us likely can see potential problematic aspects of aiming to invest (or even investing) 100% of our discretionary income into bitcoin, the exact level still does end up being a personal choice, and people can do whatever they like, even seemingly problematic things, but if they at least recognize the trade offs, then they might still end up coming to some kind of a balance that is similar to what other bitcoin investing aggressive guys are doing, even if they might just be labelling the categories of money differently... which sometimes might help if we are attempting to work with some hypotheticals so we might be able to specifically point out some of the trade offs if a guy might engage in one kind of conduct as compared with another kind of conduct, and even when we get into detailed hypotheticals, we still might not be able to capture various aspects of reality that involve ongoingly changing circumstances and even various kinds of factors that some guys might have to deal with as compared with other guys having different factors that might deal with their family life or their job or their personal health and/or other various kinds of income versus expense matters that they are dealing with. And so surely there are some guys who have relatively straight forwards income versus expenses and other guys who have a lot of complications in their income versus expenses, so guys should be creating their systems to attempt to account for those kinds of matters and for sure a guy who has way more complicated (perhaps erratic?) income versus expenses, then he likely is going to be way better served to keep larger quantities of back up funds on hand as compared with guys who might have fairly straight-forward (perhaps simple and regular?) income and expenses.
Yeah, I see what you mean. Everyone situation is different, and what works for one person might not work for the next. Would say it’s really about figuring out what fits your own life, especially when things like income or expenses are not always steady.
Question: One thing I’ve been thinking about though, when you’re trying to build long term Bitcoin, how do you personally rally round the whole thing? Like, do you separate part of your stack as something you might tap into during emergencies, or do you treat it all as untouchable no matter what?