Quote from: JayJuanGee on September 04, 2024, 01:44:18 PM

Quote from: Bitsgap_traders on September 04, 2024, 08:01:13 AM

DCA strategy in investing and DCA strategy in short-term trading are different.

It's better to make a good profit and then cut your losses from that profit. It's easy in your way of thinking.

For example:

1) Too risky: 1/4 of the profit

2) More safety: 0.25-0.5/4 of the profit

The standard stop-loss in the DCA trade, in our experience, should be at the resistance below the high timeframe resistance levels. Most of the time a tight stop-loss will be hit and the price will pull back.

You are talking about trading and not investing.

Someone who is investing might be adding to his bitcoin stash for 4-10 years or longer before he even starts to think about selling any, and even if he starts to employ some selling strategy or stops DCA buying on a regular basis, he may well not sell very much of his BTC at any one time, unless there might be some specific reason for selling. There may also be some rationale that once the BTC stash is established or sufficient in size, then why sell large portions of it, and so in that regard, there may well be an idea of long term holding and just shaving some off from time to time, whether the shaving off is price-based or time-based.

You're absolutely right.
Bitcoin indeed should be considered for its long-term potentials rather than the short-term benefits and this strategy is without doubt a very great example of long-term, buy and HODL approach. When an investor HODLs on to his Bitcoin for an extended period and not being in a hurry or rush to sell off your bitcoin for profit, the investor rides out temporary market fluctuations, while also benefiting from the investment's potential long-term growth. Yeah the bitcoin market is infact one of the most volatile markets and the DCA method is also a very strategic way of reducing the Impact of the market's volatility, which makes it a very disciplined and also a prudent strategy.