Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Ryu_Ar1
on 10/09/2023, 13:22:58 UTC
Aggressive buying is mostly during an overly discounted Bitcoin market period,  and do so should be done with funds that have no need for for as long as the time can take to make adequate profits in the long term, 
It seems a little normal as we are perceived to be able to afford much larger purchases and with our greed in mind, these thoughts will always be there.
But on the other hand, this kind of aggressiveness will actually disrupt your rhythm especially when doing DCA. because indeed when discussing consistent DCA, the emergence of thoughts of being too impulsive will cause our DCA to be disrupted which makes this a little risky.
I previously made mistakes like this especially when bitcoin was at the price of $20k at that time, even though it was still profitable from a calculation point of view but on the other hand my DCA was disrupted because of the impulsive nature that I did so I had to change from the beginning of the DCA concept that I did and it was actually a little troublesome.
When I say aggressive what I intend is that when the price of Bitcoin drops significantly to the point that the obvious is that you be at an advantage in buying at that time,  most especially when you make the buying out of cash that is left over.

Not with money that is already budgeted for something else,  at most we should not be under any form of pressure at whatever point since we ought to make our best decision free from any form of pressure in both short and long term.
As I said before even though the impulsive way is good enough for some people but not all can do it because in the end if you do a fairly impulsive way it can make profits much bigger but on the other hand the purchases we make become uncontrolled and consistency is lost because only buying with a large nominal and forgetting the initial scheme when doing DCA.

That is not a problem if you have enough funds to make regular impulsive purchases (buying at once with a larger amount of money) but if in the end this can disrupt the initial strategy of DCA with a predetermined amount according to the monthly income budget minus living expenses and other needs then I think it would be better to do DCA consistently rather than buying irregularly even with a larger amount.
In your explanation, what I can conclude is that trying to do DCA and buying aggressively during a downturn, as long as we have more funds maybe it can be done by some people but of course we have to have some other considerations in this case so it would be better to do it in a conventional way as it has always been done (with DCA) rather than taking risks where this can interfere with the strategy carried out because doing 2 buying strategies at once of course we have to redetermine the budget set for investment.