Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Altryist
on 30/10/2023, 17:30:10 UTC
I am talking from experience, there was a time that I decided to invest above my regular 10% DCA and I increase it to 20%, for the first three weeks, I was fine but later, I observe that the cash left after buying bitcoin for the week, is not always enough for me to use to take care of other needs and there must be an emergency that will occurs and I will have to take care of it. I got angry on the 6th week towards myself because, the cash on me couldn't take care of my family needs and other emergency. I got broke three days after I got paid because the moment I get paid, I just buy bitcoin instantly with the budgeted amount. This made me to think of selling some fraction from my bitcoi. But because I know where I went wrong and immediately, I asked my colleague at work to lend me some money to take care of major responsibility for that month. The moment I get paid, immefiately I went back to my normal 10% budget, and I was able to clear my sebt and could still balance other expenses. Since then I have never come up with the thought of goin above 10% with my present income. It is better to use 10% because this will not have effect on your income when you use it for DCA. Remember, slow and steady win the race.
You should not send all your money to buy Bitcoin, you need to start with a comfortable amount so that it does not create any inconvenience for you. And even if you wanted to increase the amount you set aside for a purchase, this should not be the last one you have, you should think about the fact that for some reason your investments may become inaccessible to you. What will you do in this case?

Make sure that you always have savings that you can use if necessary, I prefer it to be cash that you will always have access to. Even if you always have access to your investments, this money will be useful to you if some kind of collapse occurs in the market, you will be able to buy more if you want.