Note that people that time the market or people that are suppose to time the market are those investors that haven't gone far in there accumulation so they will want a Dip to take advantage and increase there portfolio.
You are wrong to think that those that has not gone far in their accumulation journey need to time the market, why they are even the ones that shouldn't time the market but rather to be buying regularly, persistently without any form of timing the market, a low coiner shouldn't be encouraged to be timing the market to buy the dip in form of taken advantage because it can difficult to have a desire dip. But however, buying the dip should only be seen as a secondary accumulation strategy such that an investor can have an ongoing Dcaing and if possible make provisions to buy the dip with a reserve funds. Why those that has gone far in their accumulation journey can decide to adopt the timing strategy of not buying in the same frequency they were buying when they were low, that is to say the reverse of your statement should be the case study.
It is correct to emphasize the point, since so many members think in the opposite kind of way, since anyone who is either a low coiner or poor, they should be figuring out their discretionary income and buying bitcoin regularly within their discretionary income no matter the bitcoin price for probably one or two cycles, and perhaps once they have been investing into bitcoin after one or two cycles, and after they have accumulated a decent stash of bitcoin, then maybe some time after that they will be able to potentially change their technique away from persistent, consistent, regular, ongoing and perhaps even aggressive BTC buying... And, yeh, if they are accumulating bitcoin for one or two cycles, the price likely does not matter so much in terms of ongoingly wanting to keep buying...
So, yep. There are so many guys who are getting these kinds of matters wrong and believing that they have to wait for dips and perhaps getting distracted in other ways rather than focusing on increasing their discretionary income by either increasing their income and/or cutting their expenses so that they might be able to allocate more towards regularly buying bitcoin.
Of course, they can also choose their level of aggressiveness and they can also choose to get out of their bitcoin investment, even though surely many of us regular bitcoiners consider bitcoin to be a long term investment of 4-10 years or longer.. and it may even take 4-10 years just to build up the bitcoin investment before being able to potentially transition away from accumulating and into maintaining and perhaps into some kind of later status that might involve sustainable withdrawal.
Guys who are thinking about bitcoin as a trade and are trading and/or trying to time the market before getting in are likely not going to do as well as those guys who are investing and/or regularly buying bitcoin in order to build up their bitcoin holdings. Of course the size of the bitcoin stash and the amount of building up of the stash will help to inform the next stages, once a person gets to such a status.
You should take note that as an newly investors who is just starting the accumulation journey or have limited experience should focus on consistency and regular investment regardless the market downturn, rather than trying to time the market this approach helps to reduce the impact of market volatility and timing risk management.
Why new investor to avoid timing the market, lack of experience can be a cause as an new investor you may not have the experience knowledge to accurately time the market, and trying to time the market can lead to emotional decisions making which usually leads to impulsive and costly decisions mistake.
Waiting to buy by timing the market is not only wrong for a newbie but also for an experienced investor who has not yet achieved his goal. Unnecessarily breaking the continuity of investment before achieving the goal is certainly not an ideal move for any investor, but rather a wrong move.
No matter what the market conditions are, the market conditions cannot have much impact on a long-term investor. From my perspective, the recession should be used to the maximum for buying. Because by buying during the recession, you will get the opportunity to buy more Bitcoin at a low price and you will be able to make yourself more profitable.
My advice would be to prepare a reserve fund in preparation for being aggressive during the recession by maintaining continuity in investing during the market bull run and be aggressive in investing as soon as the market is in a recession so that you are able to accumulate more Bitcoin and can move quickly towards achieving the goal.
I don't see how building a reserve fund helps to be more aggressive, except surely it helps for anyone who might make mistakes or if they might have extra expenses that they had not anticipated. Within DCA buying buys can already be choosing his level of aggressiveness, and sure there can be some value to hold back funds for various expenses, so that there is no need to sell bitcoin at any time that is not expected, and perhaps reserve funds would be first tapped into for anyone who might have some unexpected expenses, so that the emergency funds would be available for any actual emergency, yet the emergency funds might not be needed in the vent hat a person other wise has good cashflow management practices that includes maintaining various kinds of back up funds.
Buying the dip is not bad at all but timing the market is not encouraging at all , yeah the market might be experiencing some significant volatility recently due to some economy disturbance , which have lead to some dip in the market recently, does not me that you will have to start timing the market , we all know that the market can go two ways , so imagine you where waiting for the dip , and at the end prices end up surging instead you will
Miss a lot of buying opportunities, causing you to missed out.
I won’t lie this is a very nice opportunity (the recent dip ) to purchase more bitcoin at cheaper rate rather than panicking like you are holding some kind of shitcoin or something, because bitcoin is one of the assets with fast movement when it comes to price fluctuations, you can see bitcoin at $75k and few hours later it’s already at $80k+ , while some shitcoins may even take months or years to go back to their previous ATH, just stick to your dca accumulation, try and accumulate as much as you can without over doing it , like going to the extent of touching your emergency funds .
What do you mean by touching the emergency fund? If you mean buying aggressively with the emergency fund, I disagree with you. Emergency funds are designed to deal with emergencies only. Buying aggressively with the emergency fund or investing money from the emergency fund is never a good decision for an investor. If you do not have enough money to continue investing, then I think it would be a good decision to put your investment on hold for some time.
Suppose you have invested money from the emergency fund. And if you have a financial disaster in the meantime, then you will have no choice but to sell your investment. Emergency funds should be used only for emergencies. It is not right to use emergency funds for investing.
So now why the disagreement?
When we are in same path ( not encouraging others to purchase with their emergency funds) ,try going through post well before replying , because you are just mid quoting me , because I only said not to use your emergency funds to purchase bitcoin just in the name of been aggressive, just try and go through my reply again then you may understand what I was trying to say properly
I agree that Gost ms seems to have had misunderstood you and was making a different point than what you were making.
I would suggest that any time that a guy might overdo his investment, he might end up having to tap into his emergency funds because he had created an emergency by not properly calculating or maybe even engaging in weak cashflow management practices.
Sometimes we might not realize the extent of our having had made mistakes until it is too late to change the trajectory.. and we might be faced with not having enough funds to cover our expenses because we might have miscalculated our income and/or miscalculated our expenses, and we might have even used some of our emergency funds and/or back up funds to buy bitcoin, yet we may have ended up overdoing it, yet not realizing the extent of our mistake until much further down the road... We might have had also failed/refused to build up our emergency funds and/or back up funds after using them to buy bitcoin or to spend on some of our other expenses, and then we end up facing a situation of being short on cash, when we need it and we have bills coming in.
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I already give you the full gist of people that time the market. While am investor is timing the market they are at same time accumulating and then when the Dip comes they seize the opportunity and that is what I am talking about I don't know what you read from my post that is making you blab what I don't know. Moreover, someone who buys a thousand dollar of Bitcoin at the price of $74k and someone who buys a thousand dollar of Bitcoin at the price of $100k is entirely different thing that is to say you are wrong because if buying Bitcoin during the Dip won't increase one portfolio so why do you think great and small investors save enough money in there discretionary, off course it is to double up... When there's Dip.
Of course you can do whatever you want Derekfunds, including planning your accumulation of bitcoin around buying dips.
I doubt that in your approach you are going to beat the person who is more seriously focused on buying bitcoin consistently, persistently, ongoingly, regularly and perhaps even aggressively through DCA.
There are going to likely be a lot of times that you are holding back value and waiting for dips that do not come. Sure, maybe this time you got lucky, yet I doubt that buying dips as a practice is a good one for guys who are in their earliest years of BTC accumulation, yet sure of course, you can do what you like and try to time the market and believe that you are smarter than everyone else with your abilities to time the market. Maybe it will work out for you? Perhaps?
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What is the function of the emergency fund, is it not there to protect your investment, if you see the need to borrow your emergency fund to stock your investment and replace it immediately, I don't think there is anything wrong in you using your emergency fund to accumulate Bitcoin.
Let's take for instance that the funds in your wallet is not enough and due to network issue, you can't fund your wallet from your local currency for you to buy your needed satsh and you have your emergency funds with you, are saying that you are not going to buy the present low price will you allow the opportunity passes you by all just because you don't want to temper your emergency fund .
Emergency funds is for both your accumulation of your Bitcoin and your personal expenses, in a situation like these where network is very bad and transactions of my local currency into my bitcoin wallet is very bad, i will prefer to buy aggressively with my emergency funds because I don't know what the price will be at the next minute when network will be okay, therefore I will use it and replace it immediately except for those that does not have any means of replacement, but even at that you can still use part of it, not all, I don't want to believe that a serious minded investor that is hodling for a long-term will not means of replacing emergency funds if tempered.
Of course you can do whatever you like, but if you are not able to build up extra emergency funds that are ONLY touched upon actual emergencies, then you might be contributing to your own issues of having to dip into emergency funds, and not employing strong enough cashflow management.
Yes, I know it is difficult for poor people to build emergency funds, and I agree that it could take a year or two just to get an emergency fund that is equal to 3 months of expenses, perhaps at the same time as building up the bitcoin investment up to a similar size.
I suspect that if you feel that it is o.k. to be always dipping into your emergency fund, then you are likely setting yourself up to situations in which you run out of emergency funds, and you have no choice but to sell your bitcoin at a time that was not necessarily a time of your own choosing.. .which likely means, you are never going to really advance to a point where you are building your wealth in significant and meaningful ways that also allows you to enjoy the benefits of compounding value.