DCA vs Volatility: Simple lesson from the latest range

[Ruttoshi]

It is also good  to know more about  anyone running a hybrid DCA, I'm curious when it comes to  your approach. Do you keep some cash on the side for Deep flash crashes, or do you just stick to buying on a set schedule no matter what?

In other for you to be able to mix two buying strategy, you have to keep your weekly/monthly DCA ongoing and make it prior to the other strategy. You can mix buy the dip with your ongoing DCA by setting up a reserve funds from you discretionary income to only buy at the dip in order to boost your bitcoin portfolio faster.

You need to be consistent with your DCA and forget about the price because it's unpredictable.

[crwth]

Hmm. It depends on the person's goal because long-term BTC accumulation is a good way to really involve yourself in BTC, and the process is DCA and not worrying too much about the volatility. I think it's a good approach.

I imagine that having more of an opportunity cost in terms of BTC compared to cash. It's hard to know what would happen, but at least you have done something, and you need to balance it out.

It's either you invest or not.

[sotelorene]

Hi everyone,


Looking at the graphs today , this quick market variation  is untrusted for me .



Personally , I stopped trying to trade every move. I just buy a bit regularly and don't spend too much time looking at the  details and price.


Looking for your point of veiw on this! , do you guys are depanding on market indicators when  price stays flat like this for weeks, or do you just keep the exact strategy  no matter what?

We have traders and investors and it is advisable to chose either one of these and make sure to be good at it though some people chose the two but trust me you can not perfect the two and sometimes you may not be able to keep up with your investment because whenever you make loss in trading since you can win all the time, you can be tempted to touch your investment. More also, if you are a trader you may not like investment stuff likewise if you are an investor too. Either of these one is doing always try to master your strategy and trust the process.

[henmark]

Personally , I stopped trying to trade every move. I just buy a bit regularly and don't spend too much time looking at the  details and price.

Looking for your point of veiw on this! , do you guys are depanding on market indicators when  price stays flat like this for weeks, or do you just keep the exact strategy  no matter what?

What's the point of doing DCA if you are worried about the volatility? If you are using the DCA method to accumulate an asset, then you don't need to look at the charts or care about the movements; you just decide an amount you want to invest every week or month or within whatever time interval that suits you, and then you make that investment regardless of the price at the time of you making the investment. This is done to have a good overall buying price because the average will be good if you keep buying even if you start at a reasonably high price but continue buying when the market is going down and you continue doing that until the point where you previously started or around that. Some don't stop buying and just keep taking profits when the market goes high and continue buying on the other hand.

The only reason that I can think of which might make someone look at the charts or the price of the asset is because some people actually decide to increase the amount of their DCA if they see a sharp drop in the price which makes them think that they can capitalize on this and accumulate more assets during these times and then adjust the amount later if the market recovers again, but other than that, one should just continue accumulating without worry about the market and short-term market movements whether it's going up or down.

[Faisal2202]

Your question is not straight, are you talking about trading or investing. If you are concerned about investing then you don't need to disturb yourself too much about current market indicators  when trying to making your moves. Just concentrate in accumulating that is the essence of bringing in the DCA method which is to help you build a consistent Bitcoin portfolio simple due to Volatility, if you are using the right DCA strategy and following it up consistently then Volatility will not be an issue to any investor.

This is because DCA is applied to making sure that investors don't feel too much of the financial pressures which comes with someone investing, reason been that investment is demanding especially when someone is not financially that that strong when starting.

He was asking what is our strategy, when market is not highly volatile like right now it is consolidating between $60k to $64k and to be honest as an holder I am also bored with this consolidation and usually some of the members would already have declared bitcoin stablecurrency by now and they might have already only i might not have seen them so it would not be wrong to say it is really stable.

Traders are still trading, they easily hunt down trades when bitcoin is in consolidation phase. Although i believe when we are not in consolidation phase the risk increases and we can lose more if we can make more profit so that's a subjective matter based on every trader's knowledge.

I don't trade in this phase, because I am in spot and to make some money in this situation I need more capital so I wait for highly volatile phases for short term profits.

[suhadi88]

It seems that you are very familiar with market performance, but that is true for now if we pay attention to our position as a trader, but if we take the initiative to collect BTC assets by accumulating DCA patterns, this problem is not something we need to worry about by staring at the screen for hours while waiting for further momentum so that the buying decision is not wrong and we can profit from market behavior that is still sideways.

[Comeacross]

He was asking what is our strategy, when market is not highly volatile like right now it is consolidating between $60k to $64k and to be honest as an holder I am also bored with this consolidation and usually some of the members would already have declared bitcoin stablecurrency by now and they might have already only i might not have seen them so it would not be wrong to say it is really stable.

Traders are still trading, they easily hunt down trades when bitcoin is in consolidation phase. Although i believe when we are not in consolidation phase the risk increases and we can lose more if we can make more profit so that's a subjective matter based on every trader's knowledge.

I don't trade in this phase, because I am in spot and to make some money in this situation I need more capital so I wait for highly volatile phases for short term profits.

You're not the first person saying this but it's better to be stable at this price than volatile at very low price. Lol

Traders are making money but not just low level traders. Traders that don't care about the direction at all. It's all up to your risk tolerance. If you can risk it, you can make it.

If you can not risk it, you can DCA and ignore it. If you can not make money now, you should be able to stack more sats.

[snowpega]

Hi everyone,


Looking at the graphs today , this quick market variation  is untrusted for me .



Personally , I stopped trying to trade every move. I just buy a bit regularly and don't spend too much time looking at the  details and price.


Looking for your point of veiw on this! , do you guys are depanding on market indicators when  price stays flat like this for weeks, or do you just keep the exact strategy  no matter what?

Dude, you need to clarify first what you are talking about. So that others can share with you the best opinion and point of view that helps you to understand things with a clearer image. I mean, are you talking about trading or holding? Because the implementation of the DCA strategy can be applied on both sides. Well, for now I am sharing my point of view; keep in mind that you might be asking this as a long-term holder of Bitcoin.

So in the long term, it really doesn't matter a lot what the current market price is because you are using a DCA strategy, which allows you to buy consistently over time. This will help you to bring your average buying at lower point that will return you the best profit at the end of the day. And believe me, if you are doing DCA, then volatility is a positive factor in the market because, due to this, you can gather more points. DYOR!

[RockBell]

Hmm. It depends on the person's goal because long-term BTC accumulation is a good way to really involve yourself in BTC, and the process is DCA and not worrying too much about the volatility. I think it's a good approach.

Since Bitcoin is a well-known long-term investment, one of the things they should be concentrating on is how they can increase their holdings. Given that Bitcoin is already a long-term investment, I don't see why volatility is still an issue when you understand how this works. The focus will be on how you can increase your holdings, and DCA is what is typically used when you want to increase your Bitcoin holdings.

I imagine that having more of an opportunity cost in terms of BTC compared to cash. It's hard to know what would happen, but at least you have done something, and you need to balance it out.

It's either you invest or not.

And for those of you who are aware of how it operates, there are those who still have trouble juggling everything, but in actuality, when you encourage others to comprehend and make an effort to learn, they will be better equipped to deal with situations because that is the essence of learning, and doing what needs to be done won't be that hard.

[Fortify]

Hi everyone,

Looking at the graphs today , this quick market variation  is untrusted for me .

Personally , I stopped trying to trade every move. I just buy a bit regularly and don't spend too much time looking at the  details and price.

Looking for your point of veiw on this! , do you guys are depanding on market indicators when  price stays flat like this for weeks, or do you just keep the exact strategy  no matter what?

This is the way, most people will attempt to get an edge and do day trading but the reality is that you'll get wiped out by the market doing that. It's much better to take a strategy of buy and hold companies with a time horizon longer than 6 months - ideally 10 years or even forever. A good company should be able to go from strength to strength, but it's worth monitoring the quarterly or at least annual statements to make sure nothing is going drastically wrong. If you don't have time for that you could always collect Berkshire Hathaway B shares or stick with a decent global index fund with at least 5000 companies in, that should be a nice trade off between reward and not too much risk.

[Obulis]

Hi everyone,


Looking at the graphs today , this quick market variation  is untrusted for me .



Personally , I stopped trying to trade every move. I just buy a bit regularly and don't spend too much time looking at the  details and price.


Looking for your point of veiw on this! , do you guys are depanding on market indicators when  price stays flat like this for weeks, or do you just keep the exact strategy  no matter what?

You stopped trading every move and started buying I guess Bitcoin a bit regularly as in DCAing. Well before doing or taking a decision like these as a trader means that you definitely believe that this present market variation is a dip that will profit you in the soonest not because you changed your from trading/short time holding to long-term holding. You should have at least let us know of your conviction that this is a perfect dip which led to your decision of changing buying strategy and stopping to trade every move for a best time to trade.

[AVE5]

Personally , I stopped trying to trade every move. I just buy a bit regularly and don't spend too much time looking at the  details and price.

Looking for your point of veiw on this! , do you guys are depanding on market indicators when  price stays flat like this for weeks, or do you just keep the exact strategy  no matter what?

There're times needed to take some breaks especially during when you've been on the lost streaks.
This is about risk management and not to dare the market that has higher percentage house edge against you as a trader because, some unreasonable beginners will think it's cowardice to back off when the lines aren't flowing to your favour.
Persistent that you must WIN before you EXIT even, risks you more.
The essence of diversifying on your trading strategies is meant for an alternative just in case the one applicable isn't bringing you wins. As bitcoin price fluctuates, so it requires diverse of schemes to stay close with the unpredictable volatility.

[CryptopreneurBrainboss]

Looking for your point of veiw on this! , do you guys are depanding on market indicators when  price stays flat like this for weeks, or do you just keep the exact strategy  no matter what?

I believe when you want to DCA into Bitcoin you should care less about the volatility of the market because if you focus on the volatility then you might keep postponing your investment. The strategy has stayed the same from the moment I picked interest into DCA in Bitcoin as it does not really matter what the price is at the moment I want to buy as all I do is to buy with the fixed amount I've already allocated monthly into Bitcoin. When I have some extra cash then I might top up my capital but I always try not to go below the least amount I started with. The strategy did not change for me and I don't think it will do in the future as if we begin to change our strategy then we might go off track and make decisions that won't be favourable to us in the long term. If there is an opportunity to accumulate more Bitcoin I don't let it go by without taking advantage of it but I always make sure am not over exceeding my limit.

[Callido]

Personally , I stopped trying to trade every move. I just buy a bit regularly and don't spend too much time looking at the  details and price.

There is no need to care for the price or take concern on how the market is moving, in upward direction or when the price is dropping. DCA teaches us how to be consistent in the way we buy, there is no need to hesitate on buying as long that is the designated period.

If you think those who DCA without looking at volatility rate don't know what they are doing, there are investors who choose to lump sum, and they do that with a big buy without looking at the market advantage or disadvantage of moving high or going low, what matter is the entry price has been set, next move is to keep holding and watch the price go up when the bull season starts.

[Hamza2424]

buy first through lump sum and then buy through DCA gradually.

No bro, it is not necessary to buy via lump sum at first and then with DCA because not every newbie has a lot of money to buy at once in the start. Like buying $10k worth of Bitcoin at $70k, thinking it is the best price as a newbie, and when Bitcoin dumps to $60k, the panic will start because owners don't realize one thing, how much it can impact us psychologically. So never do lump sum as a newbie. Always buy small and experience how it feels in your body. Can you take the responsibility or secure the assets completely?

So do DCA at the start, and with time you can easily manage your savings and can do lump sum as well. Even at a huge loss, you won't panic because you understand the real conviction now.