Topic: Should small investors consider market price before DCA - page 2. (Read 335 times)

This was actually im going to say that when it comes to that DCA thing then this will particular pertains about buying up Bitcoin no matter what the price it would be basing up into the schedule or moment that you have decided on making up such purchase. Its true that when you are really that waiting up for it to have some correction before you will really be making up such purchase then you are just simply trying out to buy at the bottom just like on what you have said. Making up such actions like DCA does really shows up to a certain trader or investor who do really knows on how this market behaves or works but to those who doesnt have that much idea on what they are dealing into then accumulations and holding it will really be their main priority or thing that they do have in mind. The only disadvantage on here is that as a small investor then you cant be abl to expect that you will be abel to make bigger profits. Always getting in line basing up on the amount that you had invested, people will really be that becoming that disappointed just because they didnt hit up their expectations. lol

Actually things like this depend on their own considerations but for me personally I still feel that when I do DCA then I will only buy what I can when it is in bitcoin without caring about the price for several reasons that I think I can be responsible for such as I can afford to buy at that price and I know the consequences that I get from it, my goal for the long term, my belief that the future will have better progress and it could be that I can't buy at the same price and it could be that when I wait it takes a long time.
So rather than that happening I would rather buy at whatever price I can afford.

Maybe this will not be approved by everyone because there are some people who prefer to buy on the dip but on the other hand I will still do it this way where I will buy without looking at the price because my goal is the future and it could be further than that.

It's best to lump sum during a bull market and DCA during a bear market.

---

Yes, just turn on a recurring DCA purchase and let it be. Don't try to time the market. Just consistently buy a fixed amount over time.

I have said that if you don't know whether or not you should DCA or lump sum, the answer is ALWAYS DCA because if you were truly convicted, you would know that you should lump sum as soon as possible. If you haven't reached that point of conviction yet, just set up a DCA and continue learning until you become so convicted that you dump all of your fiat for bitcoin as quickly as possible.

Before we could even talk about making use of DCA, we have to understand the market trends and know when its best suitable to enter the market, then we may later make use of DCA should in case the market is in favour of the same direction we took or not, but the essence of doing this is to reduce the risk of making more losses at the same time if the entry point we took is getting more on dip.


No, you set a buying time for you to invest when it got to a particular price.

learn more on DCA form this link.
https://dcabtc.com/

I mean if you are going to do a Dollar Cost-averaging whatever the price of Bitcoin you're going to buy it anyway regularly since you're still going to earn a profit in the end as long as you can survive the lows and sell on highs. If you are going to pick the right session before investing and doing DCA it would not make sense anymore in my opinion for sure the best time to invest in cryptocurrency or in Bitcoin is when the market price is red or if it is on low prices, but the point is we cannot control the market and we don't know how the market is going to move in the next day, month or year.

So doing DCA in my opinion is just starting to buy Bitcoin already, whatever the market price because we don't know if the market is going to continue to increase its price is going to have a huge drop. Doing DCA is going to be a safe investment since whatever happened as long as you are going to sell high in the end you are going to make a profit.

DCA >


The moment you invest based on price or on your feelings and you stop following a schedule that's no longer DCA that's investing based on whatever your guts tell you. So, simply put, the question makes little sense. I'm still surprised that after years and years of talking about DCA on this forum people still don't get the basic rule of it.

If you have a long term belief that the asset you are buying is going to rise a great deal over time, you don't need to worry about the price you pay so much, only that you get your hands on as much as possible.  Trust me, nobody who was in Bitcoin in 2012 cares whether they paid $1.80 or $15 for their coins.  It isn't the buying alone that makes you profits.  That's only half the tale.  You also have to be careful to hold until your outcome is reached as most people's problem isn't buying the right assets, it's not selling them before the right time.

The entire point of DCA is to allow people who aren't savvy enough to read the market trends or want to avoid the entire hassle of trying to time the market. If you're able to correctly analyze market movements, discern between the market cycles, you might be able to earn more than the average person who DCA. However, if you're unable to do so, then DCA is better. FWIW, most people can't and definitely not the smaller investors.

Not of the market but of ourselves when we are ready and have the money going for DCA.

Yes. I've learned that no matter what the price as long as I have the money for DCAing, I'd do it. Sometimes, I feel that the price is expensive but I would take my own words for that. I've sold in the past at a lower price and that gave me a lesson that if I do believe in BTC going further, I should take it and buy whenever I am available to and my pocket says so. We have our own interpretation of DCA. The most believed is to buy at any price that we can. The next one is whenever we have money to buy for and still at any rate, I think that both compliments each other and your goal for holding Bitcoin will support your own thought when you've got some emotions or your mind is telling you that it's not the best time to DCA because the price is quite expensive.

the DCA model is about just auto-paying. where people just make auto deposits and buy at whatever the price is at

however this is not the most efficient way to make the most of opportunities.
even when people do their employment pension payments automatically, there is a pension fund of traders that then deal with the efficiency of timing the buys at the best opportunity. so even pensions are from the employee side seemingly DCA but not actually DCA at the trade side of inside the pension fund

i say this because if everyone was to blindly DCA, alot of people can end up buying on the monthly high's and missing out on the dips.

so for those that want to be more efficient, sure deposit fiat every month, but instead of blindly buying bitcoin at whatever price is, as soon as the deposit is made. just take a look at that months trade market swings and see if the price is on that months low or high to judge if its best to buy or wait for a lil dip. .. ofcourse if by month end no dip occurred you can still feel that warm DCA feeling of blindly then buying in before next months deposit arrives.. but for some, wait for a dip if the deposit day is at a market high, it might help make some better buys if buying at a lower rate

...
many agenda mindset people want naive investor to just do the blind DCA, because the agenda minded people want naive other investors to "just buy" at any price.. in short be the naive people buying at the high when the smarter traders are selling at the high.
so yes there is a big reason you see people screaming to "just DCA" "just buy" at any price. as everyone knows, you cant sell at a high unless you have a buyer willing to pay the price

Well, if it's for someone that has a more experience on the price movement, they can buy anytime the price goes a bit below it's new or previous support zones. But another thing  is also depending on how frequent the person gets the money they want to invest with. If the person is earning weekly and doesn't want to spend all the money unless they invest it, then they might not consider price but how long they are willing to hold unto the coin. We know that this is the bull season of Bitcoin and after now, we are going back to bearish cycle when the price can even drop lower that the high price that some new investors might have bought their coins. If the person can hold till next bull season, there's no problem buying now.

The best market time to buy is in the bear market and that is the best time to DCA ideally. When the price is low. But for you to do this you need knowledge and know the right timing. But if you don't mind you can buy in a small quantity even now when the price is almost $100k

There is no exactly strategy that I use. I prefer to use the investment strategy of DCA and also just putting in significant amount when it comes my way. The DCA is automatic for me and the only time I stop is when I am facing a very serious challenge that is financial in nature.

Yes, that is DCA method of investing for you  you don't have to mind what the price of bitcoin is, the price of bitcoin is never a reason to stop you from buying bitcoin. The DCA method of bitcoin is a practice that is consistent and it is an investment that you are looking into the future that is why the current price of bitcoin is nothing to fear about because you already know you will definitely make good profit if you hodl. If you think you must buy bitcoin by considering what the price of bitcoin is I don't think it will be possible to practice DCA method and to hodl bitcoin.

DCA investors their target is just to accumulate as much of bitcoin they can for the future and the price of bitcoin is not a reason why they are accumulating bitcoin.

There is no best time to buy when using DCA method because you are buying every week or month constantly irrespective of the price of bitcoin and DCA is not done at a special time, otherwise it's not DCA.

Of course, that's it. The reason of DCA is for you to buy with little amount gradually consistently every week so that you can keep on growing your bitcoin stash overtime and it has not specific market timing, because if you stop, your bitcoin portfolio remains stagnant and wouldn't grow. Is just like you have a savings of 10% of your income to build a house in 5 years time and whenever you get paid, you keep that 10% in a bank every month till it piles up to the required amount. You don't stop saving that money monthly because the cost of cement is high or cost of sand is high or bricks.

When you buy Bitcoin using DCA, that means you buy Bitcoin constantly at some term such as 1-2 years. Whether the market is bearish or bullish, you can buy Bitcoin and no needs to think much about the market moves. You can focus to buy Bitcoin weekly or monthly and hold Bitcoin for some term. You only sell when your term is finish or the Bitcoin reach the new ATH price. And as long as you don't sell your Bitcoin, your Bitcoin will not liquidate and that will be different when you do trade. But if you trade and when the price is going down, you don't have to worry but still hold Bitcoin because the price will increase again.

Your aim for doing DCA is for long term so paying attention is not best action towards doing this strategy so if you look forward to earn when price goes up for more then you should not get worried about the price and you can start to accumulate at what figure currently show up in the market.


You need to do it consistently since if you wait for the dip then provably it will just give you a doubt to decide to buy, since those small dumps would provably bother you and that one could destroy your focus.

So just be consistent on accumulation and don't pay much attention on pumps also dumps since you are not doing any short term trades.

What I don’t understand on this post is the liquidation part while you are doing a DCA method. Typically, you are trading with spot market if you will use a DCA method since you want an average price for your holdings while trading on futures should be done via short term method since it has a risk of liquidation and at the same time you have a stop loss which should be hit before you can even do a DCA.

Do a spot DCA instead of futures if you want to purchase in red market. DCA is supposed for o use on red market tho.


I usually set a DCA bought that purchase everyday on specific time like before the market close since the price typically make a move on that time.

Ideally, DCA is designed to be independent of market conditions, focusing instead on the regularity of investments. However, some inavestors might choose to adjust their DCA strategy during significant market downturns to take advantage of lower prices, provided they can manage the associated risks and psychological impact of investing during a bearish market.

In its purest form, yes. The concept of DCA is to make regular investments regardless of the market price. This approach helps to avoid the pitfalls of trying to time the market, which even experienced investors can find challenging.

The obvious answer here is if the market were in a bear cycle. That would be the ideal time for anyone to buy and accumulate more bitcoin. There won't be any ATH recorded at that time so I don't think one should really worry about the price they will be buying in at that time.
Me? No.

I try to wait until the market dips before I buy again and when it is high I do not buy. When it goes and dip again, I buy. We all have different approaches towards DCA. Some do not like having to check the price because the point of DCA is that they regularly buy bitcoin without being restricted by their own decisions. Like if we do not follow a strict DCA schedule, one might be wary of buying yet and then they miss a good entry point. But with a fixed pattern, they don't really have to worry about this as long as they are able to buy.

DCA is for all investors, not only small investors. A big example is Microstrategy and El Salvador with their Bitcoin DCA investments recent years and they have been continuing it.

If you want to find best price to DCA, it is no longer DCA and with newbies it is more challenging. Every investors want to find best entry prices but they fail, and DCA strategy is here to help them purchasing without headache of thinking and finding best prices.

If you are very experienced in this market, you can try to wait for red days to DCA, but with beginners, they won't be able to do this.