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There are a million ways to approach building wealth…

But the most important thing is to make sure you have a strategy for success.

So, today we’re breaking down the anatomy of an investing strategy, and showing you a simple approach that has made us bitcoin millionaires.

Let’s dive in:

• Simple Way to Become a Bitcoin Millionaire 🚀

• S&P 500 Price Levels To Watch This Week 👀

• Anatomy Of An Investing Strategy 📑

• What to Watch This Week 👀 

Today’s newsletter is a 5 minute read.

Simple Way to Become a Bitcoin Millionaire 🚀

What if I told you there's a dead simple method to potentially become a bitcoin millionaire without having to invest all your capital at once?

What if you could invest a modest amount over time that eventually led to becoming a bitcoin millionaire?

That’s what Dollar Cost Averaging (DCA) is all about.

DCA is the investment equivalent of slow cooking. Instead of dumping a lump sum into an asset, you spread out your investments over time, regardless of the price.

Think of it as a disciplined, automated investing habit.

Say, instead of buying $6,000 worth of Bitcoin at once, you buy $500 worth every month for a year.

It’s like slicing up your risk into bite-sized bits instead of betting the whole sandwich in one go.

So, how does this magic work?

We ran a backtest of DCA buying Bitcoin since 2013, comparing two strategies:

1. Buying when Bitcoin was 50% or more below its all-time high (ATH)

2. Buying regardless of the ATH price

The verdict?

If you'd started investing $500 per month in 2013 and always waited for a 50% drop, you'd have a cool $2M in your wallet.

Not too shabby, right?

But, hold on to your hats!

If you'd kept to DCA regardless of price, you'd be sitting on a whopping $4.7M.

Of course, the results varied over the years, with DCA always leading to a higher return despite some nerve-testing drawdowns.

For instance, investing from 2019 onwards would have seen a drawdown of 7%, and a 20% drawdown if you'd started in 2020.

Granted, DCA won’t transform you into a Bitcoin millionaire overnight. It's not a get-rich-quick scheme, more like a get-rich-slow plan.

If you want to accelerate your gains, that’s where tactical and active trading comes into play…

You see, you can potentially increase your profits by employing strategies like:

• Accumulating more bitcoin during the depths of bear markets

• Buying breakouts and dips during bull markets

• Shorting unsustainable parabolic pops in price

But remember, Bitcoin, just like the stock market, can't promise perpetual sunshine.

Ups and downs are part of the game, but historically, consistent DCA investing often leads to wealth generation.

With a pinch of patience, a dash of discipline, and a healthy sprinkle of courage to weather some storms, DCA might just be your recipe for Bitcoin success.

Now, isn’t that a tasty thought?

S&P 500 Price Levels To Watch This Week 👀

All eyes have been on the S&P 500 as it has defied gravity to new year-to-date highs.

But, as we know in the markets, what goes up, must eventually come down (at least a little bit), and we’re finally seeing a pullback in price as of last week.

A strong labor market continues to hang over the Federal Reserve and stock investors heads as it may lead to higher interest rates for longer.

Here are the price levels we will be watching on the technical analysis side this week:

1. $4,450 Zone: Price is close to retesting this short-term resistance turned into support level. If buyer demand comes in at this level this week, we could be looking at ANOTHER very shallow pullback. Shallow pullbacks = bulls are in control still. This is the biggest level to watch this week and it will tell us a lot about current buyer momentum.

2. $4,390 Pivot Low: If we see a breakdown of the $4450 zone, the next major level to watch will be the $4390 pivot low. This is a confirmed “higher low”, so if it breaks down below this zone, we could be looking at more lows to come.

3. $4,330 Pivot Low: If price falls to break down below this final major pivot low, we’re very likely to see a retest of the large $4,200 support zone.

4. $4,200 Major Support: It’s very clear that the $4,200 price level was a big level tested multiple times by buyers all year long. Naturally, we expect big prior breakout zones, to become areas of support to be retested. We anticipate this to be a big area of buyer demand to hold the market up.

All of this to say… even if we get to the $4,200 support zone in the S&P 500, the price structure will still be overall bullish.

So, we have a long way to go before bears can truly call a victory.

Anatomy Of An Investing Strategy 📑

Most of us know that building more wealth requires some education and strategy.

Jumping right into investing haphazardly can actually hurt your wealth building journey.

Because of all the twists and turns the markets can bring you through, it’s crucial to know exactly what the anatomy is of a sound investing strategy.

It will help keep you level-headed when times get tough, and let you keep profits work harder for you long-term.

1. Investing Goals: You can’t craft an investing strategy without knowing what you’re investing for. A trading & investing strategy for short-term goals looks much different than for long-term goals. Short term goals are usually achieved with lower risk assets and long-term goals with higher risk assets. Once you set your goals, prioritize them from least important to most important.

   

2. Risk Capacity: Risk capacity is your ABILITY financially and circumstantially to take on risk. Here’s the best way to explain this:

   If you have a high risk tolerance and don’t mind investing in risky assets, but you have a family to take care of and not a lot of room financially for big investment losses, you have a low risk capacity. You have to have an investment strategy that aligns with your risk capacity.

3. Asset Allocation: You want to be investing properly for the right goal. Too often people are investing for short term goals like saving for a house by investing in the stock market. This is a major goal and allocation MISMATCH.

   

4. Investment Methodology: This is where you choose what kind of trader or investor you want to be. Keep in mind you can be both a short-term trader AND long-term investor! This is where things get fun and you decide how hands on or off you’d like to be. Do you want to have a more active investing strategy where you do research and find undervalued opportunities? Perhaps you’d rather index the stock market and be a passive, hands off investor. What about a mix of both (core & satellite strategy)? The choice is yours and this may change throughout your investing life as you gain more experience.

5. Tax Location: This is where you put the right types of assets in the right types of accounts for MAX tax savings over your lifetime. For example, growth stocks have higher expected returns. So, they do best in Roth accounts because gains are tax-free in retirement.

Here’s a general idea of how different assets fit in different types of accounts (keep in mind, this is just a general guide!):

6. Mindset: Keeping a strong mental game as an investor is truly what can make the difference between you reaching your goals or not. We say that investing is 20% buying and selling and 80% mindset. A strong headspace helps you “buy when others are fearful and sell when others are greedy.” This is truly the secret to successful investing, but it’s easier said than done. Your “mental game” is like a muscle you have to exercise over time to get it super strong.

We encourage you to take a look at what you’re currently doing with your investing strategy.

-Are your investing strategy and goals aligned? -Do you feel like you’re properly prepared for any turbulent markets? -Do you have investments in the right types of accounts?

-Are you invested in the right assets for your risk capacity?

If you need more guidance fine tuning your investing strategy, you can join our Wealth Building Community for a full suite of resources and access to our expert mentors!

What to Watch This Week 👀

The key economic report this week is the US Consumer Price Index (CPI) inflation reading for July which will be released on Thursday.

Current forecasts suggest that the year-over-year percentage change could be higher than last month, the first re-acceleration in 11 months.

The market’s reactions will be very important to watch!

Here’s what else investors should have on their radar this week:

• Earnings reports from Disney, Alibaba, Palantir, Rivian, UPS, Sony, and others

• Chinese inflation data (Tuesday)

• US Consumer Sentiment gauge for early August (Friday)

• LK-99 superconductor replications & testing

Investors should also keep an eye on 10-year and 30-year US government bond yields which rose last week and could provide a headwind for stocks.

Delicious Bites 😋

• How to stop penny pinching

• Cadillac’s new $340k electric sedan

• Mini-bubbles we’ve experienced in the past five years

• This is your brain activity on sleep deprivation

• $500k mortgage payment is up 57%

Food For Thought 🧠

“Lost coins only make everyone else's coins worth slightly more.
Think of it as a donation to everyone.”
- Satoshi Nakamoto

DISCLAIMER: We are not investment advisors, and this content is for educational purposes only. We don’t offer financial, legal, or tax advice. Nothing we say is a recommendation to buy or sell any assets. Trading and investing are extremely risky, so please be careful and do your own research.