So usually I have this “Three bag theory”
Bag 1: 30% of your fund
This bag is for you to day trade to chase butterflies and stack sats (also for you to get rekt)
Bag 2: 40% of your funds
This bag is for you to cash out in the mid-term (probably when BTC hits 1Trillion market cap)
Money you cash out must be diverted to another asset class, not fiat. Its for you to make adjustments to your life so you become more comfortable financially with passive income streams
Bag 3: 30% of your funds
This bag tho its only 30% (tiny) now, will grow into a huge monster when we are in the long term, where we are talking about a 5 to 7 trillion market cap. BTC will become more investable for alot of instu if we can break above 1trillion MC, so many believe we will become 5tri shortly after we break 1tri.
So yeah this is when your life change and you become a bitcoin survivor.
So why do I break it into 3 bags?
It helps me control my emotion alot better. When markets go up or down, I know somewhere in my portfolio I’m gaining profits (in $$ or sats) if market moves one way or another.
End of the day, alot of investors get eaten up by their emotions in this game. So this system helps me with that.
Eg: when btc rally from 10k to 24k, I booked some profits off my bag 1 too early at 19-22k. But I’m able to control my emotion and not feel the fomo as I know my other bags are surly gaining some nice value
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