Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Troytech
on 20/01/2024, 21:06:29 UTC
At the first stage of investment planning, a new investor only thinks that he has to invest in Bitcoin. Before investing in a new situation, he has no idea that he has to hold his investment for a long time, but after investing, he gradually learns more detailed information about the investment. Very few new investors know about DCA method of investing. An investor invested 100 dollars in the first stage and later he thought to invest in stages but many investors do not know that this staged investment is considered as DCA method.

I really don't think that anyone would just buy an asset without having a plan or purpose of buying either short term or long term. And if eventually such a person exits, I think he is rather undecided about what he is doing or just heard about bitcoin and decided to also invest. But his learning process would be highly hindered since he didn't have any purpose for investing, he might spend his first few months if not more just buying bitcoin recklessly and if eventually situations favours him, he would sell and claim profit and if doesn't he would end up beign a new person that would talk bad about bitcoin. From what I know long term holders become long term holders based on orientation and mindset and this depends on their view of bitcoin as an asset or as a scheme to just make some extra cash

We should plan and decide on investments in such a way that we can definitely hold the investment for a long time. Investments should be planned in such a way that they can be retained rather than planning with the possibility of retention. It can be seen that this week I invested an extra amount of money, next week my demand for some money fell and I sold the investment and managed it like this but the investment did not happen. Invest a relatively small amount but be sure to keep an eye on your investment so that you can hold on to it and not sell your investment due to any danger.

Without proper plan and strategy it's true you can end up dipping your hands in your investment, but other reasons can cause this too, given a case that an emergency occurs and you don't have sufficient funds to cater for it, you might end up dipping your hand in your investment, so proper plan along side safety precautions like saving up an emergency funds that you feel would be enough for you and also planning out your cashflow properly could help too. So it doesn't matter how much your investing into bitcoin but how comfortable you are with how much your putting in. It's a good psychology not to be too aggressive if you haven't planned things out well