Topic: Buy the DIP, and HODL! - page 133. (Read 109337 times)

Your explanation is very confusing, regardless of what you say, I don't know which point to take.

You have reserve funds, you are ready to invest because reserve funds are funds that are not used for other needs.

Some mistakes in investing are of course their budget is not enough in the sense that they don't have reserve funds so this will affect their investment journey.

In phase one
Everyone invests easily but how can they invest in the long term. Yes, this is something that beginners should think about, where the finances set aside for investment do not interfere with their daily needs at all.

In the second phase.
Routine investing which is done every week in order to reach the target level, such as buying with DCA, waiting for dips and lump sum moments.

The third is to resist all temptations of lust. Of course, this third phase is what some of them often fail to implement because they are tempted by short-term profits.

Anyone that has a minimal capital that he cannot have a discretionary income in which he can use to invest in bitcoin does not need to save for in other for him to have the money that he wants to use to buy bitcoin. This is because he cannot buy once and relax believing that he will make good profit from the little amount of bitcoin that he bought, and you are investing in a long term . He needs to continue buying regularly using DCA method in order to him to grow his bitcoin investment to a level. What that person needs to do is to look for another means of income, that he can use for his bitcoin investment and also for his emergency and reserve funds, why he uses his first job to take care of other important needs and expenses.

Apart from that I don't see how such person will be able to invest in bitcoin, because it will be a waste of time and like gambling because he is not prepared and does not have what it takes to start his bitcoin investment journey.

Well said. Expecting return from the investment at the early stage isn't necessary because there is no clear path  for it.  Investors looking to invest in Bitcoin should focus more on accumulating at least after  a cycle then can decide wether to take partials, and re-invest but this solely depends on how aggressive he/she was accumulating.

Patience and discipline in the accumulation stage, understanding the fact that holding is necessary. Having a set target is also strong base that will help  push young investor to be resilient in there investment journey.

Dreams and wishes do not make any new investor succeed in Bitcoin. There is an approach to any investment and Bitcoin just like any other investment has an approach to follow if not one would definitely regret investing in it. Dont invest if you do not have any disposable income that is the first rule. The money used to invest should be your disposable income because every monthly bills and emergency funds should be sorted out before initiating any investment. After that knowing how to secure and manage your funds and this part is very tricky. And lastly setting a target while patiently and consistently investing would make an investor succeed in bitcoin investment.

You are correct! Many new investors may not have enough money in the initial stage. In that case can start small even if it is $5 per week. If he continues this regularly for a long period of time, he will develop a habit of accumulating BTC along with future capital growth. When he starts depositing BTC regularly through DCA method his income can increase as well as investment amount. And if he does his research on the past price of Bitcoin for inspiration, he can get a clear idea. I think one should be more focused on holding BTC without expecting extra profit in the initial stage. So get used to holding BTC to increase the amount of profit in future.

Don't be in a hurry to forget the fact that Bitcoin is a volatile asset which you can not measure it's occurrence in days, the price swings and fluctuations can be so rapid either inclined or declined at any given time, you made mention of that there is a very big possibility that the price one bought yesterday will still be the same price region Bitcoin will be today, there is no guarantee to that regard because there is also a very big possiblity that the price one bought yesterday can not also be the same price region today and that is Bitcoin volatility nature. However, for me I don't think when you make your purchases of Bitcoin is that important, what I feel is much important is the readiness of an investor and the availability of your investment money and how you can be able maximize every opportunities that shows it's self in the market in order to increase the size of your Bitcoin investment.

It is natural for some people whose finances are not stable or it can be said that they have minimal capital to accumulate money first, indeed for these people it is not easy, but if you have the desire and motivation you have, and work hard to invest in BTC one day you will succeed, there are many examples of people who are rich starting from small things, as long as we are consistent, let time tell how strong these people are and reap the results in the future, don't be too hasty because investing is risky.

Start collecting money if you think the capital target has been met, then invest using the DCA method, because it is easy to understand.

Depending on what you are referring to, mindset might play a role. For instance, when volatility kicks in as it always did for Bitcoin and weak hands feel like selling is the right thing to do when in fact the answer to volatility is to stick to the plan and accumulate no matter what. The no matter what is the mindset thing. People often want to play the market. I'll be straight out honest, I tried to do that in the distant past and thought if it drops and I believe it drops (although I didn't have any good reason to back it up), I sell and then buy back later for cheaper. I can tell you it is at best a coin flip and it is probably not a coin flip because psychology doesn't stop to kick in. You get the timing wrong getting off the train and you get the timing wrong getting on the train.

Buy the dip and HODL is only half of the equation. Or maybe it is 150% of the equation, but we need 100% to get it right. Going too hard, going too low, all bad. The solution is: Buy and HODL.

When you make the decision to buy, it hopefully means you got cash at your disposal that you don't need anytime soon (or never in a best case scenario) and you are happy about what you get for it because what you get is the thing you think will appreciate in value.

Buy the dip, buy the high, buy the all the way down, buy all the way up, and stop when you think you are loaded as per your own desire/need/requirement to add to your portfolio (whatever that consists of).

All I can say is that everyone makes investment according to their financial muscles, that's just the simple truth. Most multinationals companies we see and hear of today started very small, if you read through their stories you will really understand that you don't have to be fully comfortable before making investments. I agree with you when said that investment is all about mindset. Some who is earning little salary today and doesn't plan on investing so that he will have a better opportunity tomorrow will continue to be poor for life. If someone is earning $50 as monthly salary, the person should at least invest $5. If $45 cannot take care of you as someone earning $50 as salary, then the entire $50 can't still take care of you. Investment is sacrifice, and it's because of the investments we have made today that's going to be our hope in the future. No matter what level we are financially we should never forsake investing.

Mayor what your saying it actually true, this kind of salary and venturing into BTC investment can't work is like using head to work instead of legs, if the investor is coming from my nation or third world countries where inflation is hitting so high it will be very difficult to strive, such salary earner can only invest and sustain when there is other sources of income.
From my analysis no matter how you squeeze the salary in management perspective it hardly give the person two square meal on daily basis for one month while other responsibilities and unforseen circumstances is not inclusive where such salary can work efficiently is where the salary have less engagement as other sources of income serve as addictive to the salary in that case it will be very easy to invest and hold for long term without challenge if truly the investor is patient enough by controlling it's emotion and persist in accumulating when any dip occur and when deem necessary.

Someone living on a salary of $50 a month will find it hard to cover his living expenses if he decides to invest in bitcoin, and the person might not hold his bitcoin for the long term. Since bitcoin investment is a long-term investment, we should have a good income source that will help us invest in bitcoin with the money we can afford to lose. With a $50 salary a month, you can't rebuild your emergency funds when they are finished because $50 can't even cover your monthly expenses. If the salary was $100 monthly, it would be manageable because you could use $20 to accumulate bitcoin with the DCA strategy every month, use $20 as your emergency funds every month, and use the remaining $60 to take care of your living expenses. Bitcoin investment is not all about taking risks; there are things you need to keep in place before you can be successful in your bitcoin investment. We shouldn't invest in bitcoin when our income source cannot cover our monthly expenses because we could sell our bitcoin investment one day to sort out our lives.

If your finances are low, means you're struggling already to meet your needs and I think the first swipe you should have in bitcoin investment is working on increasing your income before actually investing. Its very important to find  a means to fuel the consistency of your investing journey rather than having to strangle yourself regularly to make investments, if you make investments that leaves you vulnerable, then your vulnerability might consume your investment in no distant time.

Its very practicable to go the extra mile to be able to invest such as taking up an extra job with the sole purpose of utilizing the dividends from the new job or hustle to invest in bitcoin while living your normal live with your first job. That's where the determination is fully activated because there's separation of concerns and you know now that you've to put in extra efforts to raise more money to remain consistent in your bitcoin acquisition rather than suffering yourself by cutting down fats on an already slim income.

I would have loved to know how much he started investing with to have made such conclution that you can't make an investment plan if you're earning $50 per month. The ability to start investing is one of the most important steps every investor has ever made and the truth is that people are of different financial class and belong to different regions and so regardless of what you are earning, if you're serious about investing for your future, it doesn't matter if you are able to start with $10 a month or $200 a month, if you're able to increase your earning along the way, you can choose to increase the allocation that goes into your investment. In a typical Christian religion setting that I'm familiar with, we all know that 10% payment for tithe is what's expected of them and regardless of wether the individual earns $50, $100 or even $500 a month, it's expected that he remits his 10% tithe at the end of the month and those that are faithful to it pays it regardless of thier financial strength or weakness.

Like you've rightly said, if you can't start investing when you have little resource, there is no guarantee that you will be able to invest when you've increased your earning. If you talk about meeting all your needs before thinking about making your investment, you already know that human wants are insatiable, when you think you've solved one, another comes right into your face.  Regardless of how much you're earning, I guess it's just best to decide that a certain percentage will always go into your investment. So let's say you're earning $50 per month, you just push out $5 into Bitcoin and know that it's the days of your little begining. Along the line, you will certainly increase how much you're earning and you can easily effect the increase in the process rather than waiting till you're already made before going into making making your investment.

Yeah you'd right that it's better than nothing but in some cases it's far better to have a good income that is able to cater for your expenses and leave you some discretionary income behind to invest, for someone that is earning or living in a condition that what he has is not even enough to cover up his expenses, he would rather be gambling than investing cause if any emergency were to arise he would have no second thought of selling his bitcoin and with such financial situation he would most likely buy ideas that would give him profits quick than having to wait cause he is already in a state of financial emergency.

I still stand that its far better for such to person to stabilise himself financial before thinking of investing in bitcoin.

I don't know the kind of impressions you are trying to create here because every little beginning has a greater path so are you trying to tell me that because someone's income is not enough they should not make investments? a very wrong analysis sorry to say, if you can't invest when you have little there is every possibility that even if you have enough you can't still invest. You need to understand that not every one have that mindset of owning an investment even when they are rich so investment works with the ability to conquer some challenges around you and still continue because literally no man gets enough of himself as human wants are insatiable hence if someone who is earning $50 cannot make investments plan then definitely even if they increase his monthly salary to $200 or $500 he will still find it difficult to invest because he will begin to reason that now that he is earning higher is the time to enjoy himself with his family and live a better life, I have seen a lot of people do this.

A man I know had no job and he was suffering with his family and the man was saying that if only he will get a job that he's gonna make sure he scrap out some amount for savings despite how little it may be, do you know that this man got a job but instead of taking part of his income for savings he said he has been suffering with his family all this years that it's time for him to enjoy with his family that after all if he dies no one is gonna bury him with his money so you can imagine such a person so it's not every one that have this investment mindset in them but we shouldn't discourage those that earns little amount from making investments inasmuch as the income is coming regularly they can still manage to DCA and accumulate same amount from time to time pending when they get a bigger job then they can actually increase their DCA, keep emergency funds and increase their portfolio.

We should be learning with all of our mind widely open, spare money which can also be called discretional or disposable income has to do with figuring out the difference between your income and your expenses, if you don't have your life needs covered up, then you may end up gambling with your investment, it is best you have your life personal life needs covered before considering the amount to be put in to your investment. However, you need to have either income or side amount of savings that is greater than your expenses in order to be able to invest and if you do not such access then you are gambling rather than investing. At most times different months as a monthly salary earner comes with different expenses or apparently as an individual our expenses varies in days, weeks, and months, hence an investor will tend to invest or not, increase or decrease the amount of money to be allocated to his investment depending on how much of his discretional and disposable income(spare money) he has and that only serves the purpose of investmenting only the amount we can afford to lose with so much comfort and the peace of mind needed to grow our asset class BITCOIN.

Indeed the automated DCA do actually seem like an amazing approach as it simplified the whole DCA process and make it a lot more convenient, especially for those who often have a busy schedule and could forget to buy sometimes, but I still understand your reservations about the automated DCA, because despite the convenience it offers, it can prevent one from staying engaged and informed about your investment, which is really essential for the investment as need may arise to make certain adjustments.
Manual DCA on the other hand helps one to give the required time and attention to their investment and help them stay more connected and also make the necessary adjustments where and when required.

Although this isn't always the case, because even with the employment of the automated DCA, one could still find to to regularly visit his investments and still make all the necessary changes and adjustments when needed as automated DCA can only kick in when the investor is super engaged with other activities, too engaged that he either forgets or is deprived of the time to DCA for that week or month.

I'm also having a hard time trying to imagine someone who earns $100 investing over $80 or more in bitcoin, I mean what's he going to do with the remaining $20 or less, how's that going to cover other expenses, but well except of course the person have already stashed up more than enough money for emergencies as well as his reserve/float. (Especially his reserve) Because that's the only way $20 dollars should be enough to cover for other expenses until his next paycheck.

But sometimes, regardless of how huge a person's reserve funds are, investing 80% of one's income could still be considered to be quite an aggressive wsy to accumulate bitcoin, especially for someone earning such a low amount of money.
Just as you stated, a lot of people struggle to save up to 10% of their income, regardless of their income level, so investing 80% and having 20 left could be pretty much challenging for such a person to be able to allocate it appropriately.

No matter how smart you are in this case scenario of $50 per month, you may not be able to accumulate bitcoin, talk less of setting aside discretion /reserved and emergency fund  because $50 is way smaller in terms of btc investment. because if for instance you are receiving $50 per month, let's say you set aside $5 weekly DCA howany Dolla will you keep for emergency and reserved and also feeding for the next 3weeks ahead after you might have invested in the first week? Surely such investment will put you in a tight corner. In as much as we talk about investing as little as $5 to $10 through DCA , we should also think of a reasonable amount that will not make us to sell off our bitcoin HODLing, than a kind of investment which is less than not investing atol. $50 is not a reasonable amount to even feed a family for 1 month so let me realistic in our analysis. Except you can invest a lum sum of $5- $10 per month which I don't know how it can be possible.

Actually if a person earns $100 it is manage able or otherwise more reasonable compeard to $50. So in such amount a person might decides to investing as low as $5 per week through DCA and devid the rest amount accordingly  . Or better still invest $10 or $15 per month as a form of lump-sum. It is better off.

You should know that as time goes on btc price will be increasing so you should not focus only on investing $10. you should think of increasing your investment plan to be in more saver side of being advantaged of accumulating more stash.

Yes, maybe what I said above is not quite right my friend, but in the end there is no purpose that is not recommended from what I said earlier, because what is called an emergency fund is always an important preparation that must be prepared by everyone, especially investors who are involved in investments which are not always about profit, and maybe I will make everything clearer about the purpose of the emergency fund that I said earlier, namely so that our accumulation is maintained in the long run according to the planning that we have, which is to keep our DCA allocation uninterrupted. This is because honestly, it is not uncommon for me to see investors (especially beginners) who end up experiencing a lot of delays in allocations that should be done with full consistency when they use DCA.

With what you said I think it is still a good idea, and maybe I will make this simpler which is to save 20% of the total income you have every month so that when you feel that you are not enough with the amount of 60% funds for needs because there is something that happens in an emergency such as experiencing illness or any event that requires you to spend some money then you can use the emergency fund without having to interfere with the 20% budget for your bitcoin accumulation which indirectly maintains the consistency of your DCA, but you can also change the percentage if your expenses are more than 60%.

Trading is never the best alternative method, trading can never increase the relationship much so the risk of loss is very high. Because you start trading from here your news can be narrowed when the price goes down and when the price goes up it will increase a little bit. One should never trade with such risk, the most appropriate and correct approach would be to hold but long term. But the holding should be in Bitcoin so the longer you hold the more you can improve. They are low income person DCA method for them, even if a person with low income if he invest regularly in DCA method then he can definitely get success.