Post
Topic
Board Speculation
Merits 3 from 2 users
Re: Buy the DIP, and HODL!
by
Jewan420
on 28/09/2024, 17:26:26 UTC
⭐ Merited by laijsica (2) ,JayJuanGee (1)
then he would be able to invest into bitcoin more aggressively from thereafter with his future income or any income he has coming in... of course, the discretionary portion of the income (the part that is beyond what is needed for his expenses).

Usually I use such strategy as an investment method. I don't know how everyone else views this approach. But I always plan something new and try to implement it. I always try to keep reserve fund stronger than investment fund, you can say reserve fund is more important to me than investment fund. The reason I can say is that I am giving more security to my investment by giving more importance to reserve fund.

I usually divide my income by 3 to the amount left over after meeting the needs. I keep 1 part of 3 to investment fund and remaining 2 part to reserve fund. I am aggressive in investing while keeping the reserve fund in 2 again with 1 part reserved for emergency fund and the remaining 1 part bitcoin dip. That is, if I invest $100 a month in normal times (not including my investment amount for safety), I invest more than that when bitcoin dips. This amount is determined on my reserve fund. It is almost impossible to predict when Bitcoin will take a dive. So when Bitcoin takes a dive I watch my reserve fund and keep the money in the emergency fund and divide the remaining money by 5 and invest it with DCA. That is, my monthly DCA is $100, if I have $1,000 in the sinking fund, then $500 in emergency funds and $500 in aggressive investment. So 500 divided by 5 is $100. So for the next 5 months at the time of dip, I DCA $100+$100=$200. In this way, 1 out of 3 is investment and 2 is reserve fund. But one thing is to be noted, the money deposited for the emergency fund at the time of sinking is not added to the reserve fund again. That is, the first time when we divide the reserve fund into 2 parts and save 1 part for the emergency moment, later we form the reserve fund again. For example, in the first year the reserve fund is $1,000 to $500 for emergencies and $500 for being aggressive. Next year, keep the same reserve fund, $1000 to $500 for emergencies, $500 to be aggressive in investing. That means after 2 years the emergency fund will be $1000 and I used $1000 to be aggressive in investing. Such an approach may not be acceptable to many, but personally I have had success with this strategy so far.