[edited out].
Still, either way, when you have the resources, you buy the dip or not. It's always very interesting when you are also able to buy the dip. And the question now is when is Bitcoin going to dip?
To me, it seems better if guys attempt to try to be purposeful with the extent to which they might be buying extra bitcoin on the dip, since it seems that whenever money is available to buy the dip, that money has either been purposefully set aside for buying the dip or it was a result of some kind of surprise income stream.
Surely, if it is a product of a surprise income stream, I have no problem with the idea of buying the dip with the money, even though there even comes a dilemma if the BTC price happens to be dipping, and then the person buys right away or how does he determine if more dip might come?
I think that if guys already have systems in place, then they are less likely to screw up their cashflow for buying on the dip purposes.
Surely guys who are regularly buying some kind of a budgeted amount of BTC each week, they may also decide to hold back something like 20% of their BTC purchase amount for buying on the dip. So then if they are already in the practice of holding money on the side to buy the dip, then as that money builds up they may well have to consider at which prices are they going to be buying the dip. For example, at a 10% correction, and then every 5% additional dip until running out of dip buying money.
Some guys likely consider that they are going to hold money on the side to buy the dip, and then they are going to attempt to maximize their use of such dip money by figuring out how much of a dip is a good dip, and that just seems like a fantasy to me. I personally think that guys should attempt to mostly be more systematic rather than imagining that they will be able to magically figure out the dip location. That kind of dip buyings seems too much like fantasizing and a form of gambling.
It can indeed be very crucial to be purposeful when buying extra Bitcoin on DIPs. When one has a strategy in place to use money to buy dips, whether it's money that's been set aside for this particular purpose or money from a surprise income stream, it can really offer an extra layer of help towards managing cash flow and one's investment decisions.
When one has a system in place for buying dips, it helps to reduce the possibility and chances of cash flow disruption. Allocating a portion from the amount which you regularly use in purchasing Bitcoin, like choosing to hold back 20% seems like a practical approach. Because this way, you have a clear plan for using those funds specifically for the purpose of buying the dips when they occur.
I find your points about considering prices for buying dips (like at 10% correction and additional dips) to be 100% agreeable. Although, you also rightly pointed out the drawbacks of attempting to maximize the use of dip buying money by actually guessing the right dip location. Now that sounds completely like a form of gambling because it can be very difficult or even nearly impossible to accurately predict the exact timing a dip might occur or even the exact depth.
I also agree that a system strategy to dip buying may actually prove to be quite effective than actually attempting to predict the exact dip location and depth. By having a systematic approach in place based on percentage correction and/or other clear criteria, investors can be able to be more informed and less emotional in their decisions. This kind of approach can really help to reduce the of making impulsive decisions based on the temporary fluctuations of the market.
And further buttressing on the above points, having a systematic approach for buying dips can potentially help investors to stay disciplined and also avoid overreacting to sudden movements in the market. By sticking to this plan, investors can potentially shift their focus from the short term market movement to achieving their long term goal without actually getting caught up in short term market volatility.