Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
red4slash
on 21/08/2023, 14:15:39 UTC
⭐ Merited by JayJuanGee (1)
This condition can make someone a dilemma in buying bitcoin because they have tried at a certain price such as the example you mentioned at $25k but seeing a possible decline to maish far down sometimes we can have another assumption by being able to buy at a lower price such as $23k which makes the purchase order at $25k doubtful to do.
Things like this can make us actually lose both because there are still some possibilities to go up for example.
I often do stupid things like this because it is precisely with the greed that I have in my brain that I lose momentum and bitcoin has increased after the decline has occurred so for anticipation like this when I set to buy at a certain price for example for $25k when it has happened then I will stay at that number because we cannot determine with certainty the price that will be touched rather than I lose momentum to buy I prefer to buy at the destination I want to buy and re-plan for several other purchases at another time or day by looking back at the possibilities that will occur.

Those sound like the kinds of mistakes that you should be able to learn your way out of, and for sure I understand that they happen because they used to happen with me, and I think that part of the way out of those kinds of mistakes is to create plans that go beyond expectations, and sure you might have to readjust the plans after the BTC price might end up moving close to your limits, so then your expectations would end up changing.

Let's say that you had $1,200 that you had set up for BTC buys, and you set them up as follows:

$27,500 = $400

$26,000 = $400

$23,500 = $200

$22,000 = $200

Those seem to be fairly reasonable placements of orders, even though I probably would spread them out more evenly, and maybe every $500 in equal increments down to $20k or so, and sure that might only leave me with less than $50 per buy order, and even if you go every $1,000, you still run out of money quickly if you ONLY have $1,200 that is available for buying on dips.  Of course, you are going to have cashflow coming in too, so you might be able to add to your buying on dips, but if the dip ends up coming in faster than you expected, then surely, you could end up not having additional money to add to the dip buys.

Maybe you really did not expect any orders below $26k to get filled, so you were not even very serious about those below $26k orders - however, when you saw the BTC price dropping so fast, you started to think that it might be better to pull your $26k buy order because the BTC price drop had been happening in such a ways that seems much more severe than you thought could even be possible... so surely part of your problem may well be that you do not have enough in reserve and you have not structured your buy orders well, and sure you even admit that you may well be trying to be too greedy, which is a kind of sign of gambling and/or being overly invested.. you are likely investing beyond your budget and trying to be overly strategic about your buy orders in such a way that is not even healthy for your own psychology.

You are the ONLY one that can really fix it, and I would suggest that the most logical fix is to either spread out your buy orders more and/or to make them smaller and stop trying to catch the exact bottom because the exact bottom does not likely matter as much as you think it does, even if other people are engaged in those same practices and have those same kinds of gambling style mentalities.

Well this can be fixed with the experience we have because of course we also realise that it would be very stupid to keep doing the same thing and on the other hand mistakes like this are quite common and I think almost everyone has done the same thing at least one or several times especially when they are new to investing and buying bitcoin.

Btw the division is quite good but I think we can still divide it equally such as with $300 in each purchase or DCA made or maybe make it $200 in one time it is also still possible.

Because if it is too big to make a purchase, we are worried that our consistency will decrease and this is precisely what makes DCA not work well.