Part of your problem xOrpian is that you are using terms differently than the way that other guys are using terms.
Yeah. You can do whatever the fuck you like in terms of trying to time the market and anticipate if there is a dip or not.
If you think that buying the dip works to your advantage, then go ahead and use that method.. .If you are saving a lump sum in order to buy the dip, then you are calling what you are doing lump sum, but you are buying the dip... so you try to act as if you are doing something special and innovative, and guys here don't necessarily agree that you are going to be better off to try to to time the market and to buy on dips rather than just buying regularly and all of the time, even though you are correct, you can do whatever you like including if you think that you are smarter than everyone else, even though you have only been here a week.
Sure, it is possible that you have been investing in bitcoin and even investing in other kinds of assets longer, so we cannot necessarily presume that you are new to investing, or new to bitcoin or even new to this thread if you might have had been here under some other name... but as far as your forum registration goes you have only been here a week or two.
In regards to accumulating bitcoin, there are three ways to buy bitcoin, which is DCA, lump sum or buying on dips.
Some people consider trading to be a way to accumulate bitcoin too, which would be selling and then buying back cheaper, so yeah sometimes the ideas of trading and investing will be argued about. In a thread like this, there is a bit of an investing skew, and sure there is an investing skew to all of bitcoin, since bitcoin is likely better to invest rather than to try to trade, even though surely there are guys who think that they are smarter than everyone else and they try to trade bitcoin.. which yeah they have rights to do whatever they like.
Frequently when we talk about DCA, versus lump sum versus buying on dips, we talk about them as three different ways to consider buying. There is no such thing as lump summing that is buying on dips, because all that you are really doing is buying on dips.
So the idea of lump sum has to do with whenever you might get some extra money, and you are deciding whether you are going to buy right away, or whether you might defer buying by DCA or buying on dips (dips that might not end up happening).
Buying right away is a way to treat the lump sum.
If you want to invest 'Lump sum' amount at current price, sure you can do that. If you want to buy in bear market, bull market, after a certain news, infinite possibilities. Then yes you can do that too.
Yes, each of us can do whatever, we like, yet we likely realize that some kinds of behaviors are smarter than others, so frequently we can bat around ideas about what we might consider to be better practices, and you are free to follow whatever practice that you like, including you are free to proclaim that whatever you are doing is better than everyone else, if that might be what you are wanting to achieve.
Sometimes newbies come and they want to lecture, yet if guys do not really know you or your posts, we might not really know what you are talking about, especially if you are using terms in ways that seem different from how the terms are understood.
So yeah, if you are talking about buying dips, then surely there are trade offs in regard to buying dips, when the dips might not come and you might end up engaging in inferior practices, especially when it comes to bitcoin accumulation, unless you might be a trader, then of course, you might not even understand or appreciate what bitcoin is if you think that it is merely an asset to try to trade.
I understand, thanks a lot for pointing out the flaws in my argument, I really appreciate it a lot, I am not very much used to discussions like these, so it could be a problem, after some time it should become easy.
Yes, that makes sense, having 3 methods of buying Bitcoin DCA, LS, and BODips. It also doesn't rule out the possibility of someone using those effectively and in sync depending on market and preference (I can understand people can have trouble connecting the dots as to what I truly want to point if they don't see the exact pattern I see of using 3 methods together) - There will also be people who won't be buying bitcoins on Dips, if they're new and buying bitcoins (Just for the sake of having bitcoin, in future they might learn to buy effectively but people don't start pixel perfect in investing (buying bitcoins I am referring here).
I've traded a lot and invested in a few projects (Those looked promising, but some didn't deliver the results as expected) - I am with you here, Investment is much preferable if good result can be yielded (Less headache to keep looking at charts, some people again won't have a problem with this) - I just used Bot when I used to trade, some time different methods using EMA, RSI, Fibonacci, sure there are others, but these yielded good results when the market condition were favorable, but still I won't want to keep every method/strategy in mind for every trade I make, again that's just me.
Let's say if you already have a $30k per year income and you had been buying $100 per week for 2 years, so that means, that you had invested around $10,400 into bitcoin. $5,200 per year x 2. Now if all of a sudden you received some extra cash, such as a $2,600 bonus at work, then with that extra cash you could decide to authorize yourself to invest it all into bitcoin. ... and so you could decide between 1) DCA, 2) lump sum (buy right away) and/or 3) buy on dips. You can decide however you like between those three buying methods, and that $2,600 would equal half of the amount that you had invested the previous year into bitcoin, and maybe you already know that you are continuing to invest $100 every week into bitcoin whether you had gotten the bonus or not.
We might even assume that if you had already been investing into bitcoin for 2 years, you had already spent time making sure that you have emergency funds and other kinds of reserve funds, so then we might assume that you have had time to strengthen your cashflow management systems and skills, yet surely some guys get distracted into shitcoins and into trading, so not everyone breaks their bad habits, even after being in bitcoin for a couple of years.
I understand. Take your example: I invested 100$ per week in buying bitcoins for 2 years, and that'd be using DCA. Now, when it comes to a bonus of $2,600, I will analyze the market condition, and based on that, I will buy Bitcoin, I am unsure if I will again buy DCA, I'd prefer to invest everything at once if the market condition suits it, or I will buy in Dips if market is volatile, and I have a time bound by which I'll have to buy
I don't mean everyone should follow my recommendations or how I would invest. I am laying out possibilities and my opinion (no offense to anyone).
You have not really laid out anything, except maybe trying to describe that you believe that it is better to try to buy on dips,.. but yeah, whatever you were saying remains a bit since you have been a bit unclear since your use of language has been unclear when you are describing buying on dips, but you seem to be describing that as lump sum buying.. so surely whatever you are describing remains a bit of a puzzle....even though Tmoonz seemed to be trying to help to sort out what you were saying...
I have to admit, I am not good at explaining everything I mean. I am used to telling people what to do after I lay out doing something optimally, though I can make mistakes, like everyone else.
However, I'd prefer a combination of both (If asked)... Lump Sum when there's a massive amount at my disposal (and the condition of the market is favorable for the investment), then smaller investments through DCA whenever I can.
The idea and concept of the Lump sum buying entails buying right away, it has alot to do with investors decision to invest right away with the available huge amount without considering market condition, maybe you are describing buying the dip instead of a lump sum buying, for an investor the market conditions is always favorable to buy Bitcoin provided that the investment money is readily available for investment and they are buying to hold for long term, for me I prefer making investment decisions based on the available discretionary income rather than based on the market conditions. However, it an investor decision to maximize using various strategies of accumulating Bitcoin if only they have the funds for executions.
I agree with a lot of what you say, but with 'Condition being always favorable to buy bitcoin,' This I don't agree with, I have seen market go bear multiple times since 2013 up until now, indeed it recovered, and even bypassed the previous high, but it took time 'Years' if I be specific. And not every investor knew what was going to happen to the market, they made some predictions based on human psychology, and news (That's what institutional traders do when they trade huge amounts)
I would've made this post yesterday, but I kept a draft after formulating everything, including whether there's something to add.