Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Road to 100k?
by
Tmoonz
on 11/04/2024, 01:17:06 UTC
⭐ Merited by JayJuanGee (1)

I do find it problematic for members, such as you Tmoonz, to continue to conflate the terms of lump sum buying and buying on dips, since there are meaningful differences in the concepts and the practices and the reasons why someone might lump sum invest versus buying on dips... In other words, there is no need to refer to some form of buying on dips as lump sum merely since you might be buying more BTC than what you would usually buy...

The idea of lump sum is having some amount of BTC that you are holding right now (whether you got it from surprise source or you made such amount available to you by moving it from some other location or if you take out a loan), and you decide right now in regards to how much of that amount that you are going to invest right now with that amount that is currently available to you... so that amount that you would use to buy right now is not necessarily connected with whether or not there is a dip, but instead connected with your own decision regarding how much of that amount that is available right now that you want to use to buy BTC right now in order to prepare for UP that may or may not end up happening.

Anyhow, the main thing I am continuing to suggest is that lump sum and buying on dips is different.

If I got this right, then lump sum is actually an extra amount of money, maybe outside your DCA, an amount that you recieve and you put into btc investment at once. I'm not sure if I said that right, but I'll continue to rephrase . What I understood,is this, lump sum, is the strategy where the entire amount of available funds is invested immediately into Bitcoin. For example, an investor is using the DCA method, and let's say his allocation ( assumptious figures) is $100 weekly, and he inherits or by some means gets $10,000 , and he invests it all, that is lump sum.
Right?
That means all the available cash has been invested. Or simply put this way, deploying every available capital to invest. Sometimes, it may not be to that extent though, but investing an amount that is considered of good value, all at once.  I think that last part best fits your explanation. An investor , recieves a certain amount of money, and decides to invest with it, outside his DCA, and the investor decides what amount of the sum he received to put into his investment at once, that's lump suming. This has nothing to do with the times at which you buy, dip or no dip.
And buying at dips just simply put is just the practice of buying at those price declines.
I think I got you, Jay.

Yes the idea of the lump summing has to do much to do with the investor decision in terms of the available huge sum that he /or she decided to use and make a sizeable purchase right away without considering any market conditions whether there is a dip or not . However, it a strategy on it's own that are some time use as an upfront investment strategy which does not make it compulsorily that you must have been have been using the dca strategy the dca strategy before you could use the lump sum, although the combination of both can actually give an investor a better result in terms of his/ her investment goals and objectives.