Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
JayJuanGee
on 01/12/2023, 02:58:10 UTC
[edited out]
You are very correct on this. The DCA method can be combined with buying the dip to give fantastic results. There is no harm in trying something new as long as it is aimed at accumulating more Bitcoin in a more efficient way. I am not ignoring the discipline that the DCA method requires. Buying the dip while still doing the DCA method does not violate any of the rules or requirements of each of them.

I doubt that you are wrong about anything that you are saying, yet at the same time you are describing matters a bit strange in terms of possible rules that might apply regarding what any person might choose to do, when s/he is actually under full discretion to do whatever s/he wants to do including trying to follow strict forms of DCA or to tailor some kinds of DCA to his/her own circumstances, and or to bounce between Lump sum investing, buying on dips, DCA and HODL.

So some of us might suggest: Why don't you just stick with DCA until you get to a certain amount of BTC that represents a whole year of your salary/ yearly expenses, and then rethink the matter after that?  Others might say that is too strict, and maybe just follow DCA for a whole year and then rethink that matter after that.  Others might consider that they are not going to feel good  to employ DCA because they had injected a lump sums at four points of their BTC investment journey (1) right at the beginning of their getting into BTC, 2) 3 months after DCAing  3) 9 months into the investment and then 4) 15 months after starting the investment journey. 

So in that case, the person may have been DCAing the whole time, but also influenced by the DCA choices, and was motivated to set up some funds for buying on dips... or maybe to modify the amounts that the were DCA'ing in order to save 1/3 of their available cash to hold aside for buying on dips and the other 2/3 would be put towards DCA.  Maybe I would just suggest that if you had used some word choices about best practices in regards to certain kinds of ways of combining different strategies, then you might have been better off than saying that there were rules, but even the idea of best practices kind of suggests that deviating from the supposed best practices would be deviating from rules. .

...and so maybe changing the language would really save you from the better ways of not really suggesting that anyone has to follow rules in order to do things right, but surely we might criticize anyone's approach if they call something DCA that really is not DCA because it is buying on dip or maybe structuring buys in ways that are within a kind of price prediction framework which might still kind of be DCA but seems to be a kind of buying on dip framework, which is not necessarily a bad thing.. including the slippery slopes that guys might end up getting into in terms of reducing their DCA by more and more and more as the BTC price goes up and then maybe they start to think about selling instead of buying, which may or may not be a good idea, but surely we would suggest that is both deviating from DCA but also taking buying on dip to another level that devolves into trading and maybe some other less preferable practices, even though again people can do whatever they like in the end, even though maybe some of us here are might be suggesting that they are not really even following better accumulation strategies, even though they might end up getting lucky and timing their sell and their buy back in such a way that does not end up screwing up their system.. so there are degrees, and probably many of us would still lecture those people for setting a bad example.. even though they can do what they want..

Base on your comment, I will also device means of adding to my holding before the end of the year because the prices is not showing any sign of slowing down soon. Like you said, when the fund is there, what is the essence of keeping it in the bank!

That would be a good example of choosing not to overly prepare for buying on dips, since holding some money aside might be considered as a means to prepare for buying on dips, and surely sometimes, we might be considering how much do we want to hold for buying on dips, and so at some point, for example, we might tell our selves that based on our own particulars, it is o.k. to have $600 set aside for buying on dips because "I already have it set for certain price points", but then maybe if the buying on the dip fund ends up getting up to $1k, then that is too much to be holding in reserves, so I am not going to wait for a dip for all of that, and I am going to spend $300 of it within the next two week to buy BTC and the other $100 I will just let that amount float in a kind of in-between (or a flexible) status.