You're indirectly talking about buying only dips here, newbies aren't supposed to be encouraged to buy simply because there's a presumed dip but should get started and continue buying regardless of the market price movement. For a good discipline, as long as newbies are sure they have discretionary income present,
It will never be logical to just wait for a fall. Rather, it will be a waste of time and lack of confidence. A new investor should never be encouraged to fall. Buy from the current market price, but keep the investment management consistent even through the DCA strategy.
If there is a fall while your investment is consistent, try to buy more units from prudent income.
And keep an emergency fund and backup fund along with the investment. The emergency fund will be your danger companion that will save you from sudden danger.
Follow the DCA strategy while investing in the first stage. And try to increase the portfolio slowly. This will make your investment sound and risk-free.
So after the first stage the investor should discard using the DCA method is that what you are saying? While I agree some of the things you said here, I quite find this particular statement I highlighted troublesome. As an investor, I don't think there should be a stage you should discard using the DCA method if you want to get most out of your accumulation journey. Utilise the DCA method from the beginning to the end of your accumulation phase and you will derive more value in your portfolio.
Well there's a stage you don't need DCA strategy anymore that stage is when you have reached a fuck you stage, in this stage you have already accumulated enough Bitcoin and you can even decide not to work anymore and your accumulated Bitcoin can serve as your source of income and you can use it to settle basic needs, at this stage you can only be accumulating Bitcoin when Bitcoin dips.
Apart from this stage there's no time you should stop using DCA strategy because DCA strategy is one of the best strategy for Bitcoin investment, DCA strategy helps you be consistent and fast in your accumulation journey.
Are you now saying that in the fuck you stage all you have to be doing is just taking of profit to settle your basic needs because you have gotten to your over accumulation stage you should take a break from investing and only spend? No that is not right because your investment will not be increasing but reducing, because you are not adding, then do do people even the rich still work daily to earn more more if all they have can sustain them through it their life time, this is a wrong mindset and mentality because you can end up becoming a low or not coiner within a short period of time because you are just spending and not adding up to your investment.
Using the dca strategy is good at all stages even if you have gotten to your over accumulation stage than waiting for the dip before buying, at least it will help you remain regular in accumulation, I see it as even more easier at this stage because it will be more stress less than ever, the dip might be more expensive tat your set aside funds for it.
It is advisable not to stop accumulating even if you have gotten to your over accumulation stage because you don't know what will happen next, since your basic expenses might just be outrageous at anytime .
Once a person reaches overaccumulation status then he might choose to pause any new buying, and he might have a period where he is neither buying or selling, and perhaps once he starts to withdraw, then if the dollar value of his bitcoin holdings is growing faster than his withdrawal rate then he does not need to keep buying..
Do we need to give an example?
It is optional to keep buying once a guy reaches overaccumulation status, and sure he might make mistakes and come to conclude that he is in overaccumulation status and he is not. He also might not really know what overaccumulation status is, so if he does not know, then he is also more likely to make mistakes.
I would think that if someone spends 4-10 years or longer accumulating bitcoin, he might be able to develop skills so that he is able to assess when he has reached overaccumulation status.
I would think that the more common mistakes in bitcoin are related to guys failing to accumulate enough or selling too soon or not really knowing how to manage their bitcoin holdings so that they can sustainably hang onto it, so sure I can see why guys might be nervous about making sure that they have enough bitcoin or more than enough, since guys are likely to make mistakes because they will come to believe that it is good to draw down the principle when it is probably better to withdraw in a way that is less than the rate that the bitcoin is growing in value.. and yeah, guys may also disagree about these ideas about how much bitcoin to accumulate and when they can transition into being able to sell their bitcoin.
From my own experience I’d be careful about totally stopping DCA once you think you’ve reached ‘over-accumulation’. Expenses, taxes and price swings can shrink a stack faster than expected. Even if it’s a small amount, keeping some regular buys going alongside an emergency fund helps your holdings stay ahead of inflation and keeps you disciplined.