Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
ShowOff
on 08/09/2023, 19:03:49 UTC
⭐ Merited by JayJuanGee (1)
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Well, we know that holding for the long term is really what matters, so it is not always clear how much management would be necessary at the core, but some of the problems (and maybe challenges) come from having a cashflow that is coming in and the fact that we did not necessarily have a lump sum (or credit that we want to use on bitcoin) that was available to us at earlier dates, so as the money is coming in, we have to decide how are we going to spend it... including that maybe we have $100 to $800 per month that is extra that we can spend on bitcoin, and maybe it largely ends up being less than $100 per week, but at the same time, every once in a while, maybe once or twice per year, we get some kind of an extra lump sum payment of several thousand dollars that maybe we can consider towards investing all of it into bitcoin as a lump sum, or we might want to strategize with it... even though financially it might not be exactly clear if we might be better off just lump summing right way...

and the same is likely true with maintaining our BTC portfolio once we might have reached our accumulation goals, and then we are largely maintaining, but at the same times we are teetering between wanting to accumulate more and wanting to cash some out.

I cannot completely deny or even avoid that well-planned things sometimes fail due to unexpected obstacles. Management is certainly necessary regardless of how much it is needed in the long term, I would also like to call it complex because management is not only about budget but also about risk management and psychological management.

The different financial strengths of one investor and another can differentiate their way and approach to investing. If I had $100 this month, then maybe I'd like a lump sum instead of DCA. But if I have $600 - $1000 then of course DCA is a good approach for me. It all depends on each person's finances, that will differentiate each other.