I was staring at my DCA chart as I always do everyday
, I realized, since 2016, I doubled my BTC amount every year.
I can only double one more time that's if I go all in.
Don't get caught up on unrealistic pie in the sky goals.
Consider your prudence, and you don't need to double each year in order to be employing the correct tactics.
In other words, if you start to prioritize meaningless goal posts, you will end up screwing up a system that you have built and figured out to work.
In other words, tweaks to your system should be based on incremental changes rather than throwing darts at walls when you might not be as good of a shooter as you believe yourself to be, then you end up getting fucked up the ass because you accidentally (or should we say recklessly?) poked ur lil selfie in the eye ball.
I probably bought my last fucking dip a week ago.
From now on unless there happens to be a huge ass percentage drop, I'll just keep throwing potatoes (DCA'ing) till it hits my target price.
There is never a straight up, so maybe if you are employing "buy on dip," you are not getting as much BTC, but you still cannot really count on losing dip buying opportunities.
Yeah, I understand that many of us here in WO thread have a kind of bullish, never to return to low prices theory, yet historically, it seems that those kinds of opportunities do still tend to come...
Maybe we could analogize from 2016, and yeah after a certain point, it became really difficult to obtain sub $500 coins.. and surely similar dynamics might exist in 2020.. trying to get sub $10k coins... I understand the dilemma and the urge to front load, and I have no problem with the employment of some front loading based on those kinds of ideas. I did it myself. I front loaded a bit in the three digits, but I was still always worried about front loading too much and getting caught in some kind of pickle...
Yeah, of course, I left some money on the table in 2015 and 2016, but I don't have any regrets because I really feel that I had front loaded as much as I had felt comfortable at that time, and I cannot go around kicking myself and say that I should have bought more - because buying more was just NOT prudent when I had already sufficiently thought about the situation and sufficiently frontloaded my BTC investment. There is only so much that you can do and there is only so much money that you can reasonably get a hold of without putting yourself too much at jeopardy if matters were to go sour.. and my lack of regret even goes to the fact that I could have pulled some money out of my 401k.... it was my money.. but I chose not to do it, and the 401k money performed way worse than BTC.. but I don't care because I had already considered both the UPs and DOWNs and I made my then choices about what was then prudent.. No regrets, here.
front loading is so 2014-2015ish.
It's difficult to imagine a serious frontloading at almost 9K (vs 200-500 back then).
It is closed to most, but the fiat 1% now, soon to be 0.1%.
That said, i believe that the next 5-6 mo is the last frontloading opportinity of the next few years.
Of course, if we have been in BTC for a decently long time, we are already done with our frontloading, because we largely already established our positions.
However, there are other kinds of people out there. For example:
1) if you are you just learning about bitcoin, you might want to front load
2) if you have never really been able to reach your investment goals in terms of quantity invested into bitcoin and cash flow limitations, you might want to front load
I understand that each person has to consider his/her own situation, so it might be quite difficult to front load or even to feel that you have sufficiently front loaded because each person has to be able to food and shelter himself/herself and also prepare for emergencies that might come up.
I also understand that it is more difficult to feel that you are able to front load if you are chasing the price up, and maybe that is part of the reason to frontload, yet the main risk of front loading does not seem to be so much from chasing the price on the way up, but instead NOT having any money to buy on dips because you frontloaded and then the price goes flying down and you don't have jack shit dry powder to be able to buy and maybe even start to feel that you want to sell some BTC in order to buy lower, and that is where those people can get fucked if they frontloaded too much and the price goes down instead of up.
I guess, in sum, I think that there are always opportunities to frontload and there are always opportunities to DCA... and none of us really know, exactly where BTC prices are going, but still seems that if we are just getting in, then we should try to strive for a 4-6 year investment window, and even if we have been in bitcoin for a while, we should still be considering a 4-6 year investment window with any new BTC that we buy... so we should really not be cashing out BTC that is younger than 4-6 years in our holdings... even though we have the right and the discretion to do whatever we like with our investments, I am still trying to refer to best practices in terms of long term investing into BTC that will likely give the best bang for the buck.. even though each person has to decide for himself/herself.
Interesting discussion guys. I think indeed it takes discipline sticking to your strategy and don't frontload, even when bitcoin has a seemingly continuing upward momentum from its $3k bottom. Somehow over the years I lost being sensible when it comes to Bitcoin, while I am generally cautious buying individual stocks (VTI FTW). I admire being stubborn and sticking to the strategy.
Feeling regret in retrospective to not have frontloaded makes little sense: you have a strategy and need to stick to it, perhaps it helps in case you imagine for a moment the bitcoin price went into the other direction? Especially having little 'dry powder' while bitcoin, seemingly inevitably, comes down back to earth is terrible. Bitcoin is on fire sale and you can't buy any.
It might have turned out very well for some, but that does not prove frontloading / going all in is a wise decision.
(and thanks JJG for the honest previous response)
(been legal since I started in 2013..but would be a real mess to explain crypto to a newbie IRS auditor of
