Investing as a private individual or trader?

Disclaimer

This article shares a personal experience and a philosophical reflection on managing financial stress. It is neither investment advice nor a tax or legal tutorial. Tax rules (TOB, declarations, capital gains) are complex and evolving: consult a professional. The goal here is to analyze the psychological cost of trading versus the serenity of long-term investing.

Why the idea of investing always comes back

Many individuals have, sooner or later, that little voice: “Should I invest? Should I speculate?”

Sometimes, it starts from a phrase heard at the right moment. In the 90s, a client told me enthusiastically: “There’s nothing better than the stock market!” — probably because he had just made a big profit. In any case, the idea remained.

At that time, a savings account still yielded “a few percent.” Then the euro settled in, inflation did its undermining work, and an obvious truth emerged: letting your money sleep without real return is to accept that it melts away. The biggest mistake is having thousands of euros in a savings account and leaving it there!

Inflation: 100 euros remain 100 euros… but are no longer worth 100 euros

We often hear: “100 euros in 2000 are worth 100 euros today.” Yes, the bill hasn’t changed… but the purchasing power has melted away.

A simple example: According to inflation calculators, 100 euros in 2000 correspond to about 175 euros in 2025. In other words: the bill is identical, but what it allows you to buy today resembles more like “57 euros” of yesteryear. This is precisely why “doing nothing” with your savings is often the riskiest strategy in the long term.

My shift: from curiosity to trap

Years passed, and around 2019, I heard about crypto and especially Bitcoin. At a time when the idea that “it was worth only a few thousand” was still circulating, I jumped in.

Of course, the phrase that follows is universal: “I should have bought more!” I signed up on Binance, bought a few cryptos “here and there,” and fell into the classic trap: Telegram groups, promises of “x100,” and a beginner’s naivety. Yes… some made x100. But often, it’s downwards.

Trading vs Investment: The hidden cost of stress

This is where the lesson was the hardest, but the most valuable. I tested trading. I saw what it really costs.

“Emotional” trading (impulsive buying, constant monitoring of charts, late exits) has a major flaw that no one mentions: it consumes your mental bandwidth. Earning 200 euros in trading is nice. But if it cost you 20 hours of stress, sleepless nights, and anxiety, your hourly rate is disastrous.

It’s not just an impression: the Financial Markets Authority regularly reminds us that nearly 9 out of 10 retail traders lose money in the long run. Why? Because we are not robots.

Investing is a different game:

• Choose a solid asset,

• Invest regularly (DCA: I explain the method below),

• Accept fluctuations without panicking,

• Let time work for you.

Gold: A brutal reminder of what time can do

Let’s take gold. At the beginning of 2026, the ounce reached historical highs, sometimes exceeding $5,500 with extreme volatility.

The trader who buys at the top of the wave no longer sleeps at night. The investor who buys a little every month for years looks at the curve with detachment. The historical trend remains impressive. Those who have invested regularly, small amount by small amount, without checking the price every morning, have bought the most precious thing: time.

The administrative jungle (and why to avoid it)

Very quickly, crypto has imposed an absurd reflex: to register on a multitude of platforms. The result: verification procedures (KYC) everywhere, selfies with your identity card, and total dispersion.

Then comes the administrative reality, especially in Belgium. By opening accounts on exotic or foreign platforms, one ends up with unmanageable tax complexity (declaration to the Central Contact Point, TOB to verify, calculation of capital gains...).

This is the opposite of mental peace. By wanting to optimize every cent on obscure platforms, we create a mental burden that cancels out the pleasure of profit.

The queen method: DCA (and its "smart" version)

A good way to invest without stress is to apply DCA (Dollar Cost Averaging). It's a simple method: you regularly buy a fixed amount (for example, at the end of each month), without looking at the price.

However, depending on the asset, one can refine the strategy:

1. For Gold: The classic DCA Gold has a long-term upward trend. It often serves no purpose to wait for "it to drop" to buy, because we do not know if it will drop one day. If you wait too long, you risk watching the train pass while gold doubles or triples in value in the next 10 or 20 years.

The strategy: We buy a little each month, regardless of the price. It's the regularity that pays off.

2. For Bitcoin: The "Smart DCA" Bitcoin is different: its cycles are violent, with gigantic rises and sometimes monstrous falls. Let's take the current situation: Bitcoin reached an all-time high of $120,000 and is currently hovering around $68,000. That's a drop of nearly 40%.

• Should we be afraid? Historically, Bitcoin has experienced drops of -80%. But today, with adoption by institutions and even some States, such a deep drop seems less likely.

• The smart approach: Instead of blindly buying at the top, we take advantage of these corrections (-50%, -60%) to accumulate.

• The trick: The lower it goes, the more you buy. If you can, increase your stake at each drop level. This drastically lowers your "average purchase price" (APP). When the market rebounds, you will be profitable much faster. 

And to sell? The gentle exit

Knowing how to buy is one thing, knowing how to sell is another. Many do not sell and wait for the peak of the peak, but this is a serious mistake. The selling method is identical to buying in DCA, but reversed.

At a certain point, the market gets excited. When everyone is talking about it and you say to yourself "Ouch! It's really going up fast!", it is often the signal to start taking profits. Do not sell everything at once. Sell in increments, going up:

• Sell for €100 in gains.

• If it continues to rise, sell for €200.

• Then €300, etc.

This is the key to mental peace: you buy when everyone is afraid (smart DCA), and you sell gently when everyone is euphoric.

The example of Apples: Understanding the magic of DCA

Imagine that you love apples. You decide to buy them for 120 € each year, regardless of the price.

• Year 1: Apples cost 10 € per kilo. With your 120 €, you buy 12 kilos.

• Year 2: The price drops to 8 € per kilo. (People panic, but you are happy). With your 120 €, you buy 15 kilos.

• Year 3: The price collapses to 6 € per kilo. (It's a crisis!). With your 120 €, you buy 20 kilos.

The balance at the time of the rebound: The following year, the price rises back to its initial level of 10 €. If you had bought everything at the beginning (at the "high price"), you would have simply recovered your investment. 0 € profit.

But thanks to DCA, let's see what you own:

• You spent a total of: 360 € (3 x 120 €).

• You own a total of: 47 kilos of apples (12 + 15 + 20).

• Your stock is now worth: 47 kilos x 10 € = 470 €.

Result: The price has simply returned to its starting point, but you made a profit of 110 €. Why? Because you turned the drop into an opportunity to lower your "average purchase price" (which has now dropped to 7.66 €/kg).

That's the power of DCA: mathematically, a temporary drop becomes your ally.

The mathematical secret: Winning even without returning to the peak

You may be wondering: "What if it keeps falling and falling? Do I have to wait for the price to rise back to 10 € to get out?"

The answer is no. And that's where the magic happens. Let's take our apples with an even sharper drop, still with 120 € investment per year:

• Year 1: Price at 10 € -> You have 12 kg.

• Year 2: The price collapses to 5 € -> You buy 24 kg.

• Year 3: The price hits rock bottom at 2 € -> You buy 60 kg (huge quantity!).

Let's do the math:

• You spent a total of: 360 €.

• You own a huge stock of: 96 kg of apples (12 + 24 + 60).

The miracle of the average: If we divide your spending (360 €) by your stock (96 kg), your average cost price is only 3.75 € per kilo.

Conclusion : The market doesn't even need to rise to 10 €. Not even to 5 €. As soon as the price of apples rises to 4 € (which is still very low compared to the beginning!), you are already in profit.

• At 4 € per kilo, your stock of 96 kg is worth 384 €.

• You invested 360 €.

• You made money while the price is still 60% lower than at the beginning.

That's why DCA calms the mind: the more it drops, the lower your "break-even point" is.

⚠️ The only vital condition: This mechanism only works if you buy an asset that is not going to die (do not do this with a bankrupt company or a "shit coin" crypto). If you do it with Bitcoin, Gold, or the S&P 500, it is mathematically unstoppable in the long term.

Investing without choking

Years go by and a conclusion comes back like a boomerang: Investing regularly in a solid product often beats the turmoil of trading.

Of course, investing is never "risk-free". But there are ways to limit this risk, particularly through diversification in gold, Bitcoin, and broad indices (like the S&P 500). It’s a "self-cleaning" mechanism: if a company weakens, it drops out of the index. If a new star rises (like NVIDIA which has exploded in recent years), it pulls the index up. You don’t need to guess the winner, you buy the whole basket.

Conclusion: Investing is choosing peace

Trading promises adrenaline and often ends in stress. Investing builds something sustainable.

Investing is better than "speculating". And investing regularly is better than letting your money sit in an account that is being eroded by inflation. Especially today, it has become simple. You no longer have to go to the big stock exchange buildings shouting. One phone, one reliable app, and it’s done.

A handy tool for some: Revolut. The company communicates about its status as a licensed bank (EU), which greatly simplifies access. It especially allows for setting up automatic recurring purchases. That’s the key: turning investment into an invisible routine to avoid emotions getting involved.

Here’s my referral link if you want to treat yourself and support me: https://revolut.com

Conclusion:

Investing is ultimately a form of protection:

• Against inflation,

• Against the noise of influencers,

• Against the constant race for the "opportunity of the day",

• Against stress and anxiety.

True wealth is not x100. It’s having peace!