So first of all, I think every investor should kill the traders spirit which gets you to follow the chart always and also keeps you waiting for dips to invest.
I agree that if we are in our accumulation phase of our bitcoin investment, we likely need to focus on various ongoing buying ways to get bitcoin, and selling bitcoin in order to accumulate more seems like a gambling approach to bitcoin and filled with too many uncertainties, since if our goal involves accumulating more bitcoin we need to attempt to stay focused on ongoing buying of bitcoin in various ways, and sure at some point it might start to seem that we don't necessarily need to continue to buy bitcoin, even though at some point we will likely will need to calculate the extent to which we need to buy more bitcoin or perhaps transition into either a holding phase or maybe at some point we just buy on dips, since we mostly are getting close to having enough or more than enough bitcoin, and of course, I consider the goal to be entering into sustainable withdrawal and/or having bitcoin as a lifetime investment rather than either selling out of it or overly depleting it, unless a person might be close to death or have some age and/or health considerations that motivates needs to sell larger portions of bitcoin rather than more incrementalist ways of price-based and/or time-based sustainable withdrawals (selling of small amounts based on established parameters).
That's right. During the accumulation stage, selling is a totally bad option, even if the investor's intention is to buy later when the price is much lower in order to maximise profit, this is a trader's mindset and a totally bad idea considering the volatile nature of the market. It's impossible to predict what the market's next move would be and you could end up missing out on more potential gains while waiting for a dip that may likely not come, that's not a reliable strategy at all and anyone doing this could end up in losses, especially when the person is still in his accumulation stage.
It makes a lot more sense to focus on consistent buying/accumulation, especially if the investor's goal is to build a long term and solid Bitcoin stash. As you advance and get closer to your goal, it wouldn't be bad to reassess and if necessary, make a few adjustments to suit your current financial situation. Buying on DIPs can be a great way to add more sats to one's stash, and I think it's also pretty awesome that you're thinking a out sustainable withdrawal strategies.
Having Bitcoin as a lifetime investment is such an amazing idea and you're absolutely right to consider factors like age and health when considering which withdrawal strategies to use. Incremental withdrawals based on established parameters I believe can be quite an effective approach, and it's always a good idea to plan ahead of every situation before taking decisions.
Frequently, a person will have difficulties seeing progress in their investment, even in the first 4 years of investing, unless they were able to front load the investment and even then, any investment, including bitcoin tends to take a while to play out in order fot the value to start to compound upon itself, and surely it helps the more that a person can keep putting in, and surely even now a guy who starts accumulating $200 worthof bitcoin every week may well have difficulties even accumulating 0.5 BTC in the next 10 years.. since $200 per week for 10 years results in $10,400 invested per year and $104k invested over 10 years, which might not even result in half of a bitcoin, so we have to figure out our own level of aggressiveness and reasonableness in terms of our various targets which may well be to invest and accumulate as much as we can and to perhaps tweak what we are doing from time to time,
and surely after a cycle or two we might start to feel that we are making progress, yet we still might have to continue to accumulate if we might be hoping to get to fuck you status.. and even getting to fuck you status is not guaranteed, even if we do everything perfectly, so we have to figure out ways to balance what we are doing so that we are financially and psychologically prepared for a variety of outcomes, even if at the same time we may well recognize bitcoin to be amongst the best of investments, if not the best place to put value that is open to anyone and everyone who has a discretionary income.
Your points about the challenges of seeing progress in investments I believe is spot on, especially in the early years. And front loading can in fact be the perfect boost and help in this case, but regardless, one should not expect an instant result because the value would normally take some time to compound. How fast an investment grows depends on the investor's consistency and resilience because the more one invests, the better.
Your example about accumulation $200 worth of Bitcoin every week is a perfect example to illustrate the challenges of reaching a particular milestone. It's also very important to set realistic expectations and be flexible enough to make adjustments in your strategy when/if necessary. Even with a solid plan, it's still very much possible that an investor may not reach 'fuck you status' but if you really get to think about it, you'll see that it's all part of the journey. Bitcoin is a very unique asset and an amazing investment opportunity which is why investors should be financially and psychologically prepared and ready for every possible outcomes.
Acknowledging the potentials of Bitcoin while also recognising uncertainties is the right way to approach Bitcoin investment. It's also very crucial for investors to find a balance between investing in Bitcoin and also being prepared for different scenarios, it's mostly about about acknowledging your unique financial situation and making informed decisions that aligns with your financial situation and also staying committed to your long term goals