Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy every dip!
by
ginsan
on 21/04/2025, 04:13:09 UTC
⭐ Merited by skarais (1)
There is always a trade off when you hold back money for buying the dip.  I am not necessarily opposed to it as long it is not a central strategy for newbies to be buying the dip and also for the newbies to be recognizing that there are trade offs when they are purposefully holding back money with the idea of potentially buying the dip.. rather than mostly focusing on buying regularly with whatever budget they might have.
If newbies do their research well, understand the market history well, and prepare their capital as well as psychology well enough, I think waiting for dips to buy is good strategy. It's good strategy but not best one, because of a missing point in their mind.

If newbies know a fact that dips can occur anytime, and it means it might occur after a mini bull run, or a long bull run. So if a 20% dip occurs after price already soared 50%, buying in that dip is not better than if you simply do DCA like 2 or 3 months previously with a same price. Sometimes, waiting for dips will lift your entry price, not average it down like how DCA strategy is supposed to be practically.
I think if they are still in the early stages of accumulation I think they are better off focusing on buying more routinely, collecting satoshi by satoshi to reach their target.
But what you said might be better if they have reached the 80% accumulation stage of their planning so that investors can wait for a decline even though it is not a good decision compared to the best way to continue buying DCA.

Corrections always happen because the market continues to move every day even if they continue to buy with DCA they also get the opportunity to buy at a cheap price.
On the other hand, to strengthen their portfolio, one thing that is better to apply is to continue to accumulate bitcoin every week.

Do you know, out of the many investors, they could make mistakes because of carelessness in making decisions, be it budget adjustments or their mental unpreparedness. So in this case I am more convinced that an investor must prioritize discipline in carrying out the investments they make.