Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
laijsica
on 15/05/2024, 15:00:06 UTC
Quote
Another thing for me and I think the best approach to accumulation is to allocate 20% to bitcoin, keep 20% as an emergency fund for things that might happen unexpectedly, and the remaining 60% to make ends meet.
Imo i believe the optimum allocation is subjective based on individuals income, country, goal, and attitude towards risk.
The DCA amount allocated for the month
I guess doesn't have to be once a month but could be spread across the days in a month especially during a correction or dip.

That is not actually the right way to go about it because there is no way you could advise someone who is earning low to invest on a daily basis that's actually an over investment because let's take for instance he is earning $150 on a monthly basis and you advise him to invest daily and maybe he uses $5 as his accumulation amount on the daily basis and in a month we have 30 days depending on the particular month so perhaps $5*30=$150 he will spent per month which is his salary per month and that means he will be investing 100% of his monthly salary, this is actually an over aggressive investment, so perhaps I would advise you focus on weekly accumulation using $10 since you are earning $150 monthly because this will keep you away from getting in trouble during the process.
If you have to advise someone in the matter of investment, it should be avoided to be aggressive initially because he may jump into investing according to your advice but he may have excessively reduced the daily expenses on himself or his family. The monthly or weekly investment target is to be taken by the investor based on the disposable income. Also he has to keep extra floating cash from his income to spend during emergency. He should keep this money separately from his monthly salary. This is in addition to investment funds. It is important for you to have floating cash to protect investment funds for the future. I think that after an investor starts his investment as an independent in the initial stage, especially in BTC, the process of gradually increasing his investment should be high since investment lengthening and stack size increase over time.