https://bitcointalksearch.org/topic/buy-on-panics-sell-on-rallies-318109
Quote from: Qoheleth
The trick is managing the amount that you buy/sell. My usual approach is to keep a trading purse that's half BTC, half my favorite national currency. Then, as the price rises and falls, I buy/sell so as to keep those balances equal. There's a strong underlying assumption (namely, that neither BTC nor my favorite national currency are in danger of falling to zero), but given that, and given long-term BTC bullishness, you're able to profit from swings without risking losing all your ammo.
Here is what I could think of.
- With this strategy, you always have to keep fiat on an exchange. This, in itself, is risky. You might not get it back. Or you might have to wait a long time to get it back.
- Trading too much means you're spending your money on commissions. To avoid this, you would buy / sell only after price moves by X%? What's a good value for X?
Others?