Yeah, I much prefer incremental steps. I’m not in the mood for unsustainable pumps because we all know what happens after them.
I love unsustainable pumps. Make $ on the way up, corn on the way down. Yummy.
nobody can do it on sustainable basis as it does not tell you where it will go.
sooner or later, you would lose.
For some value of 'lose' that has nothing to do with my personal situation.
Can you elaborate, jbreher?
Yeah. My elaboration is
I don't believe that there is any way in which this strategy would cause me to "lose" - counter to biodom's claim.
Every up/down, I make a profit. I can choose whether to take that profit in USD or BTC. Sometimes I flip from one to the other, depending upon cash flow needs.
It is true that this causes me to sell at a price that I expect to be (wildly) exceeded in the future. Accordingly, if corn price goes up monotonically, I will eventually have no corn, and nothing but a gigantic pile o' stinky fiat. Is that 'losing'? Not exactly. Kinda.
However, that pile of stinky fiat is rather stratospheric, given the ratios of play_money:stake I am laddering.
And every up/down gives me a more corn (if I don't take the profit in USD). Accordingly, depending upon the amount of volatility in relation to upward trend, I may never run out on the high side. Losing? Hardly.
So in reality, I was merely trying to soften a retort of 'bullshit' to biodom's blanket 'lose' statement.
The only point i was making is that selling, then re-buying, then selling again and re-buying sequences would most likely (in my opinion) result in a lower number of bitcoins than you start with.
I have absolutely no problem with selling bitcoin (or $$ for btc) in bits and pieces on the way up (or down, depending on your strategy).
It' the trading back and forth that I posit to be an unrealistic tool (when taken alone) to increase the number of btc that someone have.
I realize that you might be playing with small %%, still, i do not wish other people trading away their future wealth by trying to gain a bit of a leverage, hence my post.
Even though you are correct, as the BTC price goes up, you are likely to have fewer bitcoins than what you had when BTC's price was lower, that is part of the process, and that is especially true if the BTC price were to go straight up, without coming down (which surely does not happen in bitcoin, even though sometimes it seems like it does).
I approximately sell 1% of my stash for every 10% that BTC's price goes up, So for example if any person were to start out with 10BTC at $3k, which would have a value of $30k, and started selling 1% of that BTC stash every time the price went up 10%, then the first sales point would be at $3.3k and if the price went straight up to $20k and you were to continue to sell 1% for every 10% price rise all the way to $20k, then, when the BTC price reached $20k, you will have about 8.26 BTC (valued at $166,740) and $16,700.
If the BTC price does not go straight up, then you will be able to buy more BTC on dips, which seems the more likely scenario, and maybe you will be able to retain close to 10BTC or maybe 9BTC, depending on how your orders are set, but in any event, I don't even see any major problem with the "worse case scenario" of the BTC price going straight up. Of course, you would have had the 10 BTC, but since you only have 8.26 BTC then those sold BTC would have been worth 1.74 x $20k = $34,800 if sold at $20k, but you only have $16.7k in cash, but you also had insurance and you can set the amounts of insurance that you want to have to be more or to be less -
And you also might not know where the top is, so for example if the BTC price goes shooting all the way up to $100k without correcting (an unlikely happening) then you would only have 6.964BTC (worth $710k) and $83.2k in cash. I don't see how you would be suffering exactly by not having the same 10BTC that you started with.
If you happen to be worried that you might not have some kind of target goal of 10 BTC at $100k, then you would have to stack up more than 10BTC at $3k, and following that same system stacking up 15BTC at $3k would still leave you with more than 10BTC at $100k, assuming that the BTC price were to shoot straight up, and you would have $124k in cash too. hahahaha.,.
Certainly you can custom tailor the system to your liking, so I am having some difficulties understanding the problem with it, exactly, unless you are more inclined to gamble or you have some other system that you like, but a laddering system surely will be conservative while at the same time allow you to profit from volatility and to maintain downside insurance.