Post
Topic
Board Beginners & Help
Re: Compiling the worst advice to help newbies make money (= do the opposite)
by
jseverson
on 20/01/2020, 14:33:41 UTC
Not a bad strategy, but even a scheduled buy every week is a good idea so you don’t have to watch the charts all the time. This of course is dollar cost averaging.
I mean, the post itself is pretty poor quality, but that doesn't mean that the sentiment behind it is necessarily bad advice. Dollar cost averaging is a perfectly legitimate investment plan, and over a long enough time period with bitcoin would always have made you a profit so far.

While I agree (and this is what I personally do because I'm a shit trader), not everyone sees it the same way:

Dollar-Cost Averaging Doesn’t Pay
Why dollar-cost averaging doesn't make sense
Does Dollar Cost Averaging Work? (With Calculator)

It's great for eliminating biases, but it makes it incredibly easy to miss out on opportunities, especially on a market as volatile as Bitcoin's.

Even looking at its flaws though, I don't think it deserves a never do this warning for newbies. It serves as a perfectly good low-risk low-reward (compared to actual trading at least; BTC is quite inherently high-reward lol) solution for non-technical investors IMO.