Quote from: TERA on April 30, 2014, 12:35:19 PM

Quote from: pinksheep on April 30, 2014, 12:32:30 PM

Quote from: BitChick on April 30, 2014, 03:52:56 AM

I think with Bitcoin the hardest season is right after the first purchase. We purchased right before and well into the first bubble in April last year. It was a very long Summer and we were under water for most of it. The hardest part was thinking if we hadn't bought into the bubble we could have bought more coins than we did. I think that was what hurt the most. Of course November came and it was great and I was very glad I held on. I think having been through this a year I have a little wisdom and have learned from experience how Bitcoin works. Holding is the hardest thing to do, especially when the person has purchased the coins towards the peak of a bubble. The best thing to do would be to buy more on the drops, if the person has any fiat left, or just ride it out if not. But it isn't easy for sure.

My advice to Veronica now would be to just buy back in as much as she is willing to risk and ride it out. We will have another bubble. Didn't Barry Silbert at Second Market "guarantee" it? Wink

That's exactly what I did. When the price fell I bought more which brought down the average price I had paid for my coins. And I was fully aware that it would be a rollercoaster ride when I got involved but I knew even then that no matter how low it went, I wouldn't be selling.

Averaging down is many times a bad strategy. It does not reduce the amount of capital you have actually lost already - only in your head. Then it subjects you to more risk, and you are making an additional purchase into a downtrend.

I'm fully aware of that but at the end of the day 'you've got to speculate to accumulate'. If I'm wrong, I'm wrong. I got into Bitcoin as it seemed to offer the possibility of higher rewards than any other investment I can think of. If there's something else with better potential, please let me know