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September 11, 2023, 04:22:28 PM |
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DCA means you put a fixed amount of money into buying after a certain period of time, and do it over and over. Could be days, weeks, or months. Market movements or prices won't affect your buying time or the amount that you put in. Anything except for this is not DCA.
But to solve the issue OP talked about green candles. You can sell and take profits (if your calculation leads to profits) from that investment and then analyze the market (if you are able to. Those who are doing DCA are most of the time HODLer or newbie investors who are not good at analyzing the market.) and if you see an up pattern, just HODL all till you get more profits if you feel like doing DCA you will make a loss instead of profits in that time.
But most of the people who are doing DCA never stop till the next bull run. They always target for the long run. That way no matter which price point you buy, you will still be making profits. But if you only have a target time frame like 6 or 12 months, then the market could really mess up your investment. You could make a loss instead of a profit.
So start when there's an opportunity if you feel like long term in not for you. Such as a bear market like we are facing now and so close to the next halving. This could be a great start for DCA and you can gain a good amount of profit.
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