Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Ryu_Ar1
on 15/09/2023, 21:10:22 UTC
⭐ Merited by JayJuanGee (1)
Looking at what you said at the beginning of the sentence and at the end, I actually think it has a contradiction.
You say having a strategy and not rushing is a must-have but on the other hand you want to try first by investing $100 every time you have a salary and dividing it into several months.
Honestly, I don't really understand your current strategy whether you want to try to do DCA or lum slump like my discussion with @Baby Shoes before.
I don't consider it a mistake but I think you should start trying to be clearer in your investment scheme especially if the goal is DCA.

I don't really disagree with anything that you are saying Ryu_Ar1.. but it just seems that you might be suggesting that there are ways to really be active in DCA beyond merely just figuring out how much for each period and applying it..

Accordingly, I would suggest that anyone who is trying to strategize with buying on dips for part of his/her income that is allocated to buy BTC is not engaging in pure DCA, and there really is nothing wrong with supplementing a DCA strategy with some variation of buying on dip.

Remember a pure DCA would strictly be looking at how much income you have coming in and what are your expenses (including making sure that your emergency fund is covered), and then whatever that is left over would be used to buy BTC, so the weekly, monthly or twice a month amount may well differ depending upon variation of cashflow and variation of expenses. 

Now if a conscious choice is made to ONLY spend part of what is left on buying BTC right away, and the other portion is used for buying on dips, then there is no longer a strict DCA practice going on, and there is nothing wrong with deviating from a strict DCA as long as you realize that part of what you are doing is DCA and the other part is attempting to strategize to buy on dips.

So I think that part of my point is that anyone who is trying to strategize in regards to his/her DCA is applying some kind of a variation of DCA.. and there is really nothing wrong with that.
I might be a little bit defensive in this case for the sentence that you thickened in my previous opinion.
What I mean by it doesn't matter in this case because I don't really care what other people do about how they do the strategies they do because it won't hurt me and it's up to them whether to do what they do whether it's about DCA or buying with momentum utilization by spending their money / buying on a large scale when they want to.
The point is the suggestion where I suggest to do DCA and indeed I also still do not fully know more and understand well about some sub DCA that is pure or there are some other variables as you said but what I realize with DCA it will make us more comfortable in making investments because as we have discussed in the previous few pages, with DCA we are not too worried that the budget from DCA interferes with other needs of our expenses in one month because we have prepared and budgeted for it from the beginning when we know the income we receive.
Of course maybe when I understand more about DCA I might also do something like what you said by adding variables to DCA itself but for now I will only focus on DCA which might be pure if I look at what I do and the definition of pure DCA itself.

I still agree with what you said in the point where we invest only to spend part of what is left to buy BTC immediately it will be very risky for our needs in everyday life because we also still have to be charged with needs and all the necessities for us so we don't have to force it all in because this is used for the long term. Do not let you think about the long term that is too far away but do not think about life for tomorrow so that being aggressive is not really recommended especially when there is already a DCA strategy that we run as long as if other people still do that I don't really care because I don't really care the most important thing is that I do according to what I believe that when DCA is not really recommended to do other strategies so that the results are maximized but maybe you can still add variations or other variables to the DCA section as you said.