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.
It is more realistic if someone that is a starter, to focus more on accumulating Bitcoin aggressively and continue to buy consistently instead of waiting for a dip. DCA method of investing in Bitcoin is more important and more realistic and it is more sustainable for someone that is a newbie, we know there are challenges and obstacle that might come our way during this process, that is why continuity and Consistency is important, Continuous accumulation to build our asset is more important than waiting for a dip to occur which we might not know when exactly a dip would occur.
And a newbie trying to start a bitcoin investment there is always difficulties having backup funds, it absolutely makes no sense for a newbie to hold on to cash instead of investing in Bitcoin using the DCA strategies on a weekly basis, there is absolutely no importance in building Backup funds before making investment,
Buying aggressively and ruthlessness is the best strategy for a Beginner. This strategies helps us build our portfolio.
I disagree on this your statement here, am talking about the bold words in your write up, how does buying aggressively be the best strategy for a beginner?
Don't you know that by doing so, if you over invest more than what you can afford to do away with, you might be compel to temper with your holdings in the nearest future, because you can't be using money meant to sorts out your basic needs to invest aggressively and be expecting not to fall back to it Shortly when the basic needs hasn't been addressed.
Am not saying that buying aggressively is bad, what am trying to say is that if you don't have the financial power or leverage to do it, don't do it, because it might put you into a very difficult situation financially which might weakens your ability to hold strong, so as we are buying and accumulating, let's try to do it at a pace that it would not be a trouble to our ability to finance our daily lives.
If the newbie choose to buy aggressively and doing it within his discretionary income, that's not a problem because he wouldn't be a problem to him. It's when he over aggressively invest out of his discretionary income that he will be affected because he's only gambling and not investing.
Hope you don't want to send newbies into financial instability?
Hence you have attained some financial buoyancy and you feel you want to invest in Bitcoin, it is good to have some financial reserve enough to foot your bills along side as your investing also, so while receiving your income, you make sure you create provision for your back up funds and your investment funds so you can always have something to stand on whenever there are seemingly financial incumbrances, so for me, I don't see the difficulty in doing that as your seeing it. However if the newbies has a substantial cash at hand and he wants to aggressively and ruthlessly build his portfolio, I think he should just go for a lump-sum since it's looking like the newbies is in a hurry.
If a newbie is financially buoyant, that's good for him because he would be able to build his bitcoin in a faster pace compared to when his discretionary income is low. However, it will be wise for such person not to use all his funds that he assigned in buying bitcoin to lump sum at once because he wants to see a good amount of bitcoin in his portfolio. If he lump sum without continuing his DCA, he wouldn't have the opportunity to benefit from the market price swings.
It's better that the newbie with strong financial strength should use the funds to buying aggressively with DCA and spread them out over several weeks as long as he continues buying nonstop every week consistent and persistent overtime.