Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Odohu
on 16/08/2024, 16:02:13 UTC
I don't think that is a good idea for newbies, if a newbie is investing for long term, looking at the market will not do him any good, what he she should be concern about is accumulating enough Bitcoin and not watching the market, except the newbie is into trading which is a wrong way for a newbie to go.
As a newbie investing in Bitcoin and then always watching the market will only delay your accumulation journey for example if you are a newbie and you just started a Bitcoin investment and before you no it there's a dip it may stop you from accumulating more or reduce the percentage you are putting into Bitcoin.
I think what a newbie should be more concern about is accumulating.
Looking at the market can be bad and it can also be good too, everything just depend what could be the reason for looking the market.  An investor can decide to always watch the price of the market not necessarily for fear of volatility but just to see the movement of the market to take advantage of the dip. I don't think their is no how one will be investing bitcoin and not getting to know the price of the market. Looking at the market is not the reason why investors fail to hodl, the reason why people fail to hodl bitcoin is because they want to make profit fast and they do not want their bitcoin to drop because of volatility, wrong understanding of the market.
If you make it a habit to constantly watch the chart, chances are high that you will develop FOMO. It has happened to me in the past and I have learnt to reduce my time in the chart. Bitcoin is a very volatile asset that can move thousands of pips within an hour, if you are actively engaged in watching the chart, you will definitely act impulsively and this can result in mistakes. Even if you want to buy the dip, you can set alert at certain price point you would want to make an entry, that is if you are not using limit orders. I'm more interesting in making the Bitcoin accumulation process seamless and not time consuming because time is precious.

Instead of having to watch the chart  every now and then, why no simply use the DCA method so you know the time you have to come to the chart is the time of purchase which can be weekly, monthly or any comfortable spacing that suits the investors finances. I have benefitted immensely from the DCA method as it practically solve most of the emotional problems I was encountering when I have not learnt the method.