Topic: Proposed investment strategy with focus on long-term gain - page 2. (Read 2328 times)

Thanks!

I have currently have USD on the way to Mt.Gox.  My plan is to not buy in immediately, but to place limit orders to buy at 10% below the all-time high.  I'll keep adjusting them upwards as the price climbs.  I expect to automatically buy during the next flash crash.  Then I'll gradually start selling, and perhaps transfer more money in, as the price recovers.  My long-term goal is to be about 80% in BTC and 20% in USD during the bull runs.

We just need to get some big players to join our scheme!

Nope, I said not me, not notme .

Wait, so you're in?

Not me.  I've already done my share of selling without being able to rebuy.

Premise #1: New investors help drive up the price of Bitcoin.

Premise #2: Capital is fearful.  It runs away at the slightest hint of risk.

Conclusion #1: A volatile Bitcoin market, subject to flash crashes, tends to scare away potential investors.

Conclusion #2: It is in the long-term interest of those who are long Bitcoin to work to prevent any significant dips.

Proposed new investment strategy:

1.  When we start to see new all time highs, everyone interested in the long-term success of Bitcoin should temporarily convert 20% of their BTC holdings into USD (or the fiat of your choice) at Mt.Gox (or the exchange of your choice).

2.  Place a limit buy order backed by that fiat at 10% below the current price.

3.  As the price goes up, keep adjusting your buy order upwards.

4.  Next time a flash crash starts, the buy orders will execute, hopefully arresting the downward trend.

5.  Repeat.

I say it's better to be 80% invested in a long, sustained rally than 100% invested in a choppy market that scares away new investors.  We'll all make more in the long run.

If we had been following this strategy for the past few weeks, today's flash crash would never have gone from 95 to 75, as all our automatic buy orders would have triggered in the 85 range.  If the flash crashes are caused by big-money market manipulators, their purpose must be to get us to panic sell when the price starts going down.  If we consistently do the opposite of what they want, and buy instead, maybe they will stop disrupting our markets!

Who is with me?