A must-have for every investor

Check out this graph I found: https://charts.bitbo.io/original-rainbow/ Forget about the numbers and how they were calculated since I totally disagree with that part. But honestly, I really dig the main concept here. I believe every investor should have something like this for all their investments, whether it’s BTC, altcoins, real estate, or anything else. Just having these figures in your head isn’t enough! You need to jot them down as specifically as you can, and a graph like this one is a great tool to help with that. Plus, you should clearly outline your strategy on when you’ll start buying and selling, and how much of the asset you plan to trade at different price points. Of course, your strategy will vary depending on the asset and its volatility, as well as how accurately you can determine its fundamental value. For crypto, I’ve figured out that it’s best for me to buy during phases X and IX, and I usually start selling around phase VI, with 50% of my investment sold off by phase IV. Here’s how I break it down: I Max Bubble (red) II Sell Seriously (orange) III FOMO (light yellow) IV Is this a Bubble? (yellow) V HODL (dark yellow) VI Still Cheap (light green) VII Accumulate (green) VIII BUY! (dark green) IX Fire Sale (blue) X Bitcoin (or whatever your investment is) Dead (purple)

By this chart bitcoin would still "be cheap" at 120k. This is clearly not correct  But the website is beautiful

An investor never has to see the price chart and an investor needs to continue investing continuously. Whatever the price is, he should continue investing continuously. What you said is completely focused on trading. An investor needs to continue buying continuously with his discretionary income until he reaches the goal of building his portfolio But yes, writing down when we bought these things is very useful for us, such as. It helps to find out the average purchase price and how much profit we have made. But these are detailed on the exchange.

Michael Saylor uses that chart (BTC fundamental value is around 300 000 usd). If he is right and we are wrong (yes this is probable though the probability is indefinite) then we are laughing our own stupidity  Who says that crypto is not fun ?!

I agree with you in that usually an investor who has 100% made his purchase need not check the prices daily (or even weekly) because volatility is too low making it probable to start selling in such a narrow time horizon. Though, the price is important even for investor (nobody do not want to buy at any price). And if the volatility increases then the rational investor will turn into "trader".

In terms of investment, the first thing you should do is collect all the information about the one you are going to invest in. Do research about it. It is not just about investing that you will make a profit. There is also the possibility of loss. For example, if someone wants to invest in  trading, they should know the basics well and make decisions based on their own abilities. Patience is needed in terms of investment. Because many people invest  for the long term. But after a few days, when the price drops slightly, they immediately withdraw their investment. But they do not keep in mind that it will bring them profit in the future. You have to make up your mind before investing. Above all, the point is to choose the right place instead of investing blindly and invest with patience in advance. As a result, good results can be expected later.

Everyone have their own ways of trading and analyzing the market because things does not seems to happen they way they may be thinking, so what you would do next is to always find your trading account with the way you should be able to lose and bearing the risk without aggressively transfer it to another when you might have lose your trade. As a trader you should be that able to know when ur trading amount is indirectly draining from you, as a Gamblers you should know what next to boost you more while trading without aggressively puring your anger on someone who does knows how about your loses.

It's good that OP could map out something that would act as a defense against emotional eruption or transfer of aggression because what is stated makes a trader stick to the script even when things don't go as planned, and that's discipline in its own way. It is also clear that paying oneself first is more profitable and a more disciplined approach that I would consider it a sharp money move, while scaling out 50% of ones position by stage IV. The structure is really the ultimate thing to put into consideration because of the visual clarity it provides at any given moment and thus will ensure success in trading if put into practice accordingly.

That is how they predict when they only write down numbers and when it shall happen. The rainbow chart is a perfect example of it. Exactly. Many investor are blindly investing and their only basis is that they've heard it from someone or suggested it to them. Prior to that, any investor should know what they are investing and this is the first basic rule in investing.

Yes, but if I frequently interact with charts like this, I might need to do more eye exercises.   But that said, once you're used to and comfortable with the various indicators and details on the chart, it'll be fine. But to be honest, as an investor, I wouldn't include that many figures because my goal is to invest for the long term. So, just pay attention to what coin I want (especially, the Bitcoin) and send it to my hardware wallet. Keep it and let it be for a few years later until the bull run comes. The important thing is not to use new coins, hype coins, or coins with low market or even meme coins cap for long term investment.

Why not explain the black area (outside the rainbow)? Does it have to be an anomalous movement? Hahaa. But if we look at each bull cycle, Bitcoin's ability to reach the bubble area is diminishing. It seems like it's time for Bitcoin to draw a slightly downward-curving rainbow path to achieve a perfect rainbow.

Investors watch the calendar to check they don't miss the time to buy. They check the profit that they get today and if they don't get it, they will focus with accumulation. They don't think much about the price movements and will not sell if the price down but buy back more with more free money. That will be discount for them as they can buy at a low. But if the time to sell comes, they will aware, prepare to sell and take their profit. They will not sell all but only sell some and get the profit and leave the rest.

I guess everyone can do what works for them.. I personally don't bother myself keeping record of my investments in bitcoin because all that can be found on my wallet history the date, how much I bought and the fees I used. So it's not necessarily important for me though. The only thing I think it helps you do is to stay conscious of your investment that why you know if you are lacking behind from your investment plans. As a bitcoin investor you should set a plan down and make sure you follow them. You can also have some target in mind for what you want to meet up with in your investment. Also using a good strategy like DCA would help you accumulate without too much stress of watching the chart all day..

Of course, setting a bitcoin target to accumulate will help you stay focus in your accumulation stage than just buying bitcoin randomly, without a target. In fact, DCA is what I advise people who are investing for the first time to use in accumulating bitcoin because it gives them more access to the market and increases your portfolio overtime. Looking at the chart is mainly done by traders because they're after quick profit. Long-term investors need to worry less about the chart because they are not selling but only to ongoingly accumulate bitcoin.

AFAIK, there's an attraction thing about thinking about such figures or events that we should simulate in our minds. That's the law of attraction, I am not just sure if OP is applying that to this. While it can be applied by everyone, it is not everyone who's thinking about such figures. What other traders and investors are having in their minds are figures which are realistic and achievable and that's why it is no question when they don't think of those figures because they might not be realistic.

How you could explain the black area - the sweetest one ?

Free money? Is there actually anything like free money? You probably mean money he can afford to lose during investment. But again, I still feel the whole discussion here revolve around traders or short term holders and not about long term investors. I don't expect someone who's willing to hold for long term to be checking their profits on a daily basis unless they intentionally want to risk premature selling. Money and emotion can be hardly separated. Even without reaching your target yet, you might be tempted to sell after seeing some profit due to emotion that you probably cannot control. This is why it's necessary to have a clear intention and plan before beginning your investment. You don't necessarily need to be flipped over your wallet every day.

I think that is if they are doing a DCA, since DCA is more on the regular side but in order for us to not truly miss, I think we can also set an auto buy in the wallet or exchange that we are using. Long term investors don't also check the price from time to time because they are not planning to sell for the short term. Then we have patterns here. If we are not new in here, we must know already the times for checking the price or if the bull had truly arrive for selling. For those who take advantage about a dip price, they are the opposite of DCA investors. That being said, the more they won't sell at a loss. The only regret they can have is by missing a supposed to be an acceptable buy price, as they are also prone to greed of waiting for more dips.

I would name the black area above the rainbow "strong overvaluation" and the black area below the rainbow "strong undervaluation". Who here remember when BTC was in the "strong undervaluation" area ?