Quote from: invisiblehand on December 07, 2013, 01:20:40 PM

Quote from: deisik on December 07, 2013, 01:17:15 PM

One day you enter too early and without cutting your losses just in time, you are doomed to lose a great deal of money. It is just a matter of time...

Clarify?

I am long term bullish on BTC but I think the above trading strategy capitalizes on the volatility and allows acquisition of more BTC without using more fiat (which I am running short on).

If we are talking about day-trading (the strategy that capitalizes on the volatility) as we do here, then stop-loss orders are a must-have. They are designed to limit an investor's loss on a position when the price change is unfavorable beyond allowed limits. The OP says nothing about them in his post. Simple example, in 2008 the oil price got somewhere above 140 dollars, then within a year (maybe even less than that) it fell to somewhat above 30 dollars and never bounced back to previous highs (despite all the monetary expansion and QEs). So, if you would have bought oil at, say, 130 dollars per barrel (as the OP suggests in regard to Bitcoin) you would still be losing out...

I hope I have clarified my stance (it is not mine actually, it is the ABCs of trading)