People who are eager for quick and fast money are usually the ones who do this, they are short sighted and are not in the long game cos they lack patience. They are traders and it’s in their nature to want to make gains quickly, so I don’t want to say it’s all wrong move, so long as they’re making profits and their buybacks is always on a price lower than they sell. The problem is the risk is higher with this practice and you have to be looking at the price chart always (hourly, daily).
This practice is bad and should not be supported especially in a thread like here where there are many newbies and potential investors who are seeking information on how to go about Bitcoin investment the right way and not make mistakes. If we support people to sell at the sight of profits with the hope of buying them back, a lot of them will run into problems which will eventually cost them pain at the end of the day. Why should we support short term buy and sell when holding for long is the right way for better profits and more peace of mind. If we encourage more people to adopt the DCA method of accumulating Bitcoin and holding for long term like a decade and above, we will see more successful, rich and happy Bitcoin investors in the future. I think we should focus more on this than anything.
You’re right. Selling off bitcoin at the sight of profits is extremely a bad practice because I could remember early this year when Bitcoin hit $100k, so many who don’t understand the fundamentals in holding bitcoin sold off there bitcoins. They couldn’t keep up with buying now that it’s high and has caused so many pains to them. So short term buying and selling shouldn’t be supported in as much as we know that Bitcoin is the future. Anyone who wants to be a successful Bitcoin investor should always embrace holding Bitcoin for a longer term, and not selling off when little profit is being made and DCA method will help in accumulating bitcoins at any point of of once life. Bitcoin is the future and long term investment is the goal.
This reply might be coming late it’s cos I’ve been seriously engaged offline. I’m not supporting trading or advising people to go into it, I’m only trying to say that it’s also a means of making profits even if it’s not an investment. Why it is ill advised is cos the risks sometimes might be greater than the reward. You don’t venture into it if you’re a newbie cos you’ll definitely regret it.
Yes we’re discussing investment and doing it the right way in this thread, but the major aim of every investment is to make profits and gains. Hence if they’re making gains it’s not all bad, there are many ways to reach that aim, anyone can choose how they do it.
I totally support DCA method, personally I’m practicing it and also encouraging others to but I don’t wanna write off others who aren’t doing it. Each of us is responsible for every action we take, at the end of the day a person will do what he wants, you can only advise and leave the rest. Those who gamble (placing bets) do it for gains, will you say it’s a bad thing to do?, these are things that if you can’t do it don’t get involved.
People and their situations are different and might choose to go about making money different ways. People who engage in buying the dip and selling at high are not Investors, they’re just looking to make small gains. The problem is we see them as investors and judge them with such status, not everyone who owns a fraction of bitcoin is an investor.