Should small investors consider market price before DCA - page 3.

un_rank

hero member

Activity: 644

Merit: 661

- Jay -

Quote from: Obari on November 21, 2024, 03:51:09 AM

~ What session of the market do you think it’s best to buy when DCA
~ Do you just buy at every market price while DCA?

- If you are picking when to buy based on different factors, that is not DCA. DCA especially tries to avoid the stress of trying to read the market and newbies should not be expected to be able to use technical analysis to predict the next price action. With DCA, the goal is accumulation with a long term target.

- You buy according to your calendar, much better to get in when the price is down as you get more value for your money.

It is important to note that you only lose when you sell.

- Jay -

FatFork

legendary

Activity: 1624

Merit: 2594

Top Crypto Casino

The point of DCAing is to take the emotions out of investing. You just steadily put money in over time, buying more when prices are low and less when they're high. but your average cost evens out. You shouldn't stress about daily price swings. Just invest on whatever schedule you decide - whether it's every week or month. Doesnt matter if the market's up or down. The amounts stay fixed.

Stick to the plan through bull and bear cycles alike. It works out in the end if you stay disciplined. Timing the market's impossible anyway.

Apocollapse

hero member

Activity: 1148

Merit: 796

If someone claim to DCA-ing Bitcoin but they still consider market price before buy Bitcoin, it means they're not DCA-ing Bitcoin.

DCA means you don't care anymore with the price, instead you're only pay attention with the time you bought, if it's bi-weekly, make sure you buy it every bi-weekly, not late or earlier than bi-weekly.

Paying attention to buy Bitcoin means you're trying to buy the dip.

TravelMug

hero member

Activity: 2632

Merit: 833

Quote from: _act_ on November 21, 2024, 04:03:42 AM

Quote from: Obari on November 21, 2024, 03:51:09 AM

On the other hand, I think the DCA method will be more favourable to the smaller investors when the market is bullish because if a small investor decides to DCA when the market is red, there are obvious possibilities that, it might get liquidated depending on how much has been imputed already.

I prefer to start DCA after a long bear market.

This one, I think it's better to do DCA if the price is really very low specially if you are a small investor. The only problem is that it will be long and tough as it might take years to do it and so it's not just about the budget, but how mentally ready you are to go into a long haul.

Although motivation is obviously the big profits, so you have to look at the bigger picture to somewhat overcome that psychology. For me personally, I think about it this way, if others can do it, they why not me? So yes, if you are just average joe investors, then you might want to look or start your DCA when prices at a discount, and this could happen during the bear market.

But think about it, if we got into a bull run at around $180k, then the next bear market is around $50k lowest low, isn't it still too high for us in the future?

_act_

legendary

Activity: 1064

Merit: 1298

Lightning network is good with small amount of BTC

Quote from: Obari on November 21, 2024, 03:51:09 AM

On the other hand, I think the DCA method will be more favourable to the smaller investors when the market is bullish because if a small investor decides to DCA when the market is red, there are obvious possibilities that, it might get liquidated depending on how much has been imputed already.

This is the right time to say 1 BTC equals to 1 BTC. There will be reduction in the amount you used to invested if you compare it with fiat like dollar as the price is falling, but there is no liquidation. Holding is not trading with leverage in derivative market.

I prefer to start DCA after a long bear market.

Ambatman

sr. member

Activity: 420

Merit: 315

Top Crypto Casino

Quote

On the other hand, I think the DCA method will be more favourable to the smaller investors when the market is bullish because if a small investor decides to DCA when the market is red, there are obvious possibilities that, it might get liquidated depending on how much has been imputed already.

Your holdings of Bitcoin cannot get liquidated
Except you trading a derivative.
Everything boils down to the investor goals, capital and capacity
So there isn't any universal answer.
Personally I believe it's cheaper getting or starting in a Bear market and continuously accumulate
To a level you satisfied with.

Quote

~ Do you just buy at every market price while DCA

Campaign does this for me
While I use my personal funds during dips
Though I usually separate them
Don't want to complicate the average price.

Obari

hero member

Activity: 602

Merit: 442

A Proud Father of Twin Girls 👧 👧

I made a recent post on a thread in the beginners and help thread and I think, it’s a topic worth discussion and for broader visibility and discussion, I’ve decided to bring it to a new thread so we can get more opinions and views

Quote from: Obari on November 21, 2024, 03:38:37 AM

On the other hand, I think the DCA method will be more favourable to the smaller investors when the market is bullish because if a small investor decides to DCA when the market is red, there are obvious possibilities that, it might get liquidated depending on how much has been imputed already.

The DCA method is a good one but I think there are also terms and conditions associated with it and most times, when I read about advise that newbies should DCA regardless of which season the market is in, I’m at some points confused because I don’t actually see DCA as that easy as it’s been presented and as such, it’s like telling a total newbie to buy bitcoin at every possible time they have the money they can afford to lose regardless of the current market price of coin

I’m just curious to know if the fact that market price of the commodity is considered when telling a total newbie to DCA?

~ What session of the market do you think it’s best to buy when DCA
~ Do you just buy at every market price while DCA?

Topic: Should small investors consider market price before DCA - page 3. (Read 335 times)