The Risk and Confidence Equation on BTC.

in #btc6 years ago

Obviously , the right investment is going too have a moderate magnitude of fluctuation relative to the return you can expect to get .it is also going to have a moderate quantity of fluctuation relative to the return you can expect, it/s not going to jumping around all the time , But most important the best long term investment is going to be one where you have the fullest faith and confidence that it will fluctuate back up after it fluctuates down ,that it will become more valuable over time.
Otherwise , you'll be tempted to sell at the bottom out of fear, and your investment results will suffer. indeed the best long-term investment is the one that is easiest from a psychological stand-point to buy when the fluctuation have been down .
in other words ,one test of how good an investment is in terms of the ease of holding it is to consider how attractive it may be to purchase or add more when its value has been decreasing.

When that is the test and when that test has been passed then you know you are talking about real investing as opposed to swaying with whatever breeze happens to be passing at the moment, when your understanding of your investment is suffpersist forever, than you're no longer just a pawn of the great industrydedicated to selling investment products , then you are actually an investor.

this is not to say that good investment must decline before they become interesiting to buy far from it.
many of the best stock never really experience big or noteworthy declines.
this as they say late at night TV,is merely a test it's like kind of litmus paper.if you feel so insecure about an investment that you'd be tempted to seel on a a 10% or 20% decline, you need a better and more understandable investment ,or an attitude adjustment or Both.

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