Quote from: The Pharmacist on August 22, 2018, 04:26:08 PM

Quote from: Kpmaline on August 22, 2018, 12:53:53 PM

buy the bottom don't buy the dips

Lol. I think everyone would do this IF they could easily tell the difference between a dip and THE bottom. In practice, very few traders ever get this one right--and that's not surprising, since nobody I know of has a functional crystal ball.

When I took corporate finance in college (one of just a few economics classes I elected to enroll in), one of the major points was that for riskier assets, a higher rate of return is expected. That makes sense. That's why a savings account in your local bank doesn't pay a lot of interest. That's why junk bonds pay such a high interest rate. It's been a long time since I took that course, and I don't know exactly how this principle applies to bitcoin, but it's definitely high-risk. It has the potential to be high-reward, but that certainly isn't guaranteed.

Exactly my own understanding as I was asking myself what is the difference between the two? Can we see a bottom without a dip? And if there is a difference, someone waiting for the bottom in the midst of dip might have to wait till forever because there is no notification anywhere that state "this current point is the bottom. Henceforth, we are going higher". Aside the fact that its a relative term as what could constitute bottom for one, is the point to exit for another.

In basic investment that follows the "natural law", higher risk=higher return but not exactly true in crypto. An example is someone banking on an ICO taking enormous risk because he believes the return would be massive only for the ICO not to reach soft cap or anything close to that which makes implementation impossible. That amount to huge loss despite the high risk investment he took.