Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
HistoLock
on 01/10/2025, 14:05:39 UTC
Snip
Of course how aggressive a person is with his investment is discretionary (meaning within each person's choice).  Discretionary income can be used for consumption, investing or savings.. so usually a person will not spend 100% of his discretionary income on investing, even though he is free to do that.
A wise investment strategy supported by proper risk management is an important step that investors need to take to achieve their financial goals in the future. As we all know, Bitcoin investment does offer the potential for high returns, but it also involves the risk of significant price volatility, so investors must make wise investment decisions based on their risk tolerance and long-term goals. DCA is the best option and does not seem rushed or emotional in making purchases because investors can still manage finances from discretionary income to cover other needs. After that, it would be better if it was combined with a long-term strategy to take advantage of the potential for value growth.

I am not very thrilled with holding back value for buying dips, especially for new investors, yet people can do what they like, and I can imagine situations in which putting some money aside for buying dips would be reasonable for the person... such as if a person had already bought a bunch of bitcoin at a certain price, then maybe he would want to set some money aside for buying dips.
Admittedly, buying when prices are falling can be an effective investment strategy, but it requires a clear investment strategy and good risk management to deal with when prices continue to fall because this situation is very difficult to predict when prices will rise again. If a novice investor experiences a case like this, they must remain calm and not make investment decisions based on emotions. It is also important to monitor the market regularly and make adjustments if necessary.
I think if you buy when the price is falling, then you can make a profit by investing in the long term. But you should always keep in mind that if it continues to fall, there may be risks. If it continues to fall, then you should forget that you have invested, because I think if a person sees that the market has fallen and is still falling, in such a situation, his invested money is high, he will be stressed and may sell out of fear. So I would say that in this situation, you should forget that you have invested, then you can survive in all situations. Yes, it is certainly true that buying when the price falls is a strategy, but you cannot apply it all the time. But if you have been investing for a long time, then you will definitely observe the market and you will be able to move your investment forward.