Quote from: CageMabok on Today at 03:24:25 PM

Quote from: ginsan on October 04, 2024, 09:48:32 PM

Cash flow is the main concern that must be considered for the sustainability of the investment made. Determining cash flow management for a long time certainly drains a lot of thought so that it can run as we want. Cash flow is supported by a fixed income and if not it will be contrary to what is planned. Generally, cash flow is divided into several stages and maybe we already know about it so that a wise mindset is to be able to maintain it as well as possible to reach the point of success in investment.

Everyone must know where they get money in their life and of course it can be considered as a personal cash flow for themselves so that everyone must be wise enough in managing it if they still want to invest more consistently in something like Bitcoin. For now, I still consider a fixed income to be very important so that I can still use and channel that income into several things and also into investing in Bitcoin. Because with the existence of a fixed income in life, of course everyone will continue to learn to manage it well if they still want to achieve greater success in the future so that policies for themselves must always be there and it is not only about cash flow.

There is an expression regarding the power of living within your means, yet also if you live within your means, then any extra that you have can be turned towards investment and at the same time, if you are investing, then you have a cushion in regards to earning more than you need to live.. which after many years of living within those boundaries, you can come to an assessment in regards to how much you need to maintain your living style and/or standard. The more excess wealth that you have then the more you can sustainably increase your standard of living. I think one of the problems that non-investors have is that they want to increase their standard of living prior to their income supporting such increases, which we might have the same problem if we try to live off of investments rather than living off of working income, and so managing cashflow and also managing expectations seem to be a large part of becoming rich and/or staying rich...

since it seems that a lot of folks would like to mostly cut out their need to have to work in order to continue having an income coming in, and surely there can be some income that might come from prior work (such as pensions) or even from the state (such as social security), yet various forms of personal investments might be more controllable and able to make differences, so even if a person might not be able to completely live off of the investment income, such income can supplement the other kinds of income, and surely there are some folks who never are able to build any amount of pension or social security, so they are reliant upon ONLY whatever they are able to put together for cashflow from their investments, and it seems to me to be better to get such investments up to a size that they are sustainable rather than depleted in a short period of time. I am not sure how people get to such organization states or even confidence about the sustainability of their investments without building their cashflow management skills.

Quote from: Jewan420 on Today at 05:16:07 PM

Quote from: JayJuanGee on Today at 01:33:57 PM

It seems to me that you can set some of your dip amounts in advance, and yeah it is true that there may be instances in which the BTC price dips further than the amount of dip that you had in reserves, and so each person has to figure out how much money he wants to have in his reserves for buying on dips. On a personal level, I tend to have my buying on dip funds to be set at least to the 200-WMA, and frequently even below the 200-WMA, and surely newbies might not have as much reserve funds to be able to even buy dips.. or they are mostly just focusing on DCA with ONLY limited amount of money they hold back for buying on dips. I personally believe that it is best for the newest of BTC accumulators to mostly focus on DCA and not be fucking around with trying to buy dips, and so part of the rationale for trying to get into a system of buying every week (even if a guy has a monthly income) is so that there could be a bit of buying on the dip that is already somewhat naturally incorporated into the DCA, so there would be less concerns about missing out on dips as compared to the guy who is ONLY buying once a month...

Along with DCA I give more importance to reserve fund for dip buying. Because reserve fund is divided into 2 always one part is kept for emergency fund (which acts as protection to prolong my investment) and the remaining part is used for buying dips. I have only been in the deep once since I started investing.

Going by your forum registration date, we have been in dip (or at least consolidation) pretty much the whole time that you have been registered on the forum. Did you start buying BTC around your forum registration date or some other date? In other words, I am having some trouble understanding what you consider to be a dip.

Quote from: Jewan420 on Today at 05:16:07 PM

I would like to ask some questions, should I be aggressive in DCA with the money reserved for the dip during the dip?
Or should I buy a lump sum with the whole amount?

Those are fairly personal choices. I don't even recommend buying dips for folks who are in their whole first cycle or maybe even cycle and a half of bitcoin investing, so in that regard, I recommend DCA and I also recommend weekly, and if you want to try to catch dips within the week, then sure nothing wrong with that.

There is no reason to get greedy, especially for newbies. .just suck it up and buy ongoingly, persistently and consistently and don't be fucking around trying to guess BTC price movements.

If you are going to save some of your weekly allowance for buying dips, then you might want to spread out the amount in increments rather than trying to time any bottom. Sure, you get more bang for the buck if you are able to lump sum all of it at the bottom, yet how the fuck are you going to know that there is going to be a dip and how you going to know how far the dip is going to go. Sure sometimes when we are in a dip we get a sense that we are in the bottom of a dip, but we cannot really know in advance that such dip dynamics are going to end up playing out, and that is true no matter how much technical analysis skills you have and the various chart gurus are going to tell you blah blah blah blah.. and at best they are making guesses, so why even waste time trying to figure out the extent to which some of them might be right.. just keep buying bitcoin consistently, persistently and ongoingly and whenever you are holding money back to buy on dips you are deviating from a consistent, persistent and ongoing DCA buying strategy.

Let's say that you have been DCA buying bitcoin at $100 per week for 6 months, and so you have bought $2,600 worth of BTC in the last 6 months. You want to hold some of that back in the future? Or are you suggesting that you want to increase your BTC buying budget, so you are going to continue to buy $100 per week of BTC, while at the same time holding another $50 per week in case the BTC price dips.. So what might happen is that you could continue to DCA the $100 per week while at the same time you are stacking the $50 per week that you plan to use to buy on dips, so maybe you plan on a 10% dip or a 5% dip or a 25% dip.. Well you have to figure out how much you have in your dip buying budget and how much of a dip you are going to want to deploy each of the amounts.

I don't even like the idea for newbies, and surely I don't like the idea of holding all of it back for a lump sum, so if you are going to plan such a strategy, I think that you should try to figure out various price points that you are going to execute such BTC buys on the dip...maybe even setting your BTC buy orders in advance.. so if the BTC price dips and fills all of your buy orders you end up running out of dip buying money.. yet you can spread the buy orders even lower, but the more money that you hold back as a newbie, then the more you might end up suffering from the problem of the BTC price going up rather than down and your feeling that you did not buy enough BTC, yet if you are buying BTC all the time and every week, you will likely not feel as bad when the BTC price ends up going up rather than down.. and plus you put yourself into a better psychology of buying BTC all of the time rather than fucking around with various kinds of waiting strategies that may or may not end up working out.

Quote from: Jewan420 on Today at 05:16:07 PM

A few days ago I entered the deep, where I chose to be aggressive in investing. At that time I took a completely independent opinion. Normally I invest in DCA monthly, as I am salaried monthly. But as I had money saved for the dip, I resorted to weekly DCA to buy the dip, which was only for 3 weeks. Later I again started saving money in reserve fund and preparing to buy dip. I haven't fully planned whether I will do DCA or buy lump sum during the next dip, but in the initial plan I am preparing to buy lump sum. I want advice from you guys, should I do frequent dip along with DCA? Or once a year or longer?

You might be trying to be too smart for your own good... but hey whatever... do what you like.

Frequently, I recommend that if anyone wants to be as aggressive that he is able to be, then the guy should first make sure that he has emergency and reserve funds in place, and then creating a weekly DCA purchase, even if he is paid monthly. .. so if you already have your emergency fund in place, then you can afford to be somewhat aggressive with your weekly DCA.. so if you have an income of $2k per month and you have expenses of $1,500 per month, then you can plan to buy $100 per week of BTC and you can even attempt to employ the DCA buys on a manual basis if you want to figure out if their might be a dip during the week... yet at the same time, you might figure out that it is not a very productive use of time to try to figure out if there may or may not be a dip during the week, and you may well come to conclude that it is better to just buy your $100 per week in BTC and work on other ways that you might increase your discretionary income buy increasing your income and/or cutting your expenses.

I suspect that you are going to try to be smarter and you are going to try to figure out how to buy dips, and sure whatever, that's your choice.