05 Jan Buying the dip strategy avoiding FOMO
When you start to see a dip say 5%+ buy 1/2 or 1/4 what you would buy if it were to drop 15-20%. If it drops to what you feel is a “bottom” buy the other 1/2 or 3/4. If the price drops you don’t get the full value of the “dip” but you did get a decent buy out of it.
If the price does not dip below the 5% range and it bounces back, you just made 5%.
I have been monitoring on a daily basis for the % change.
Example: Last night I get my notification BTC is down 5% I bought a small amount to hedge if the price did not drop, and today it’s back up that 5% + another 3%.
If the price would have dropped say 5% lower today I would have evaluated and watched for it to go past 10% or back towards 5%. I would then either do the same thing buy 1/2 or 1/4 what I would buy if it drops another ~15% – rinse and repeat….
Am I missing something or is this a good strategy? Also I’m not talking huge amounts of BTC, I’m talking at most a few hundred USD.
I don’t think I will get rich doing this, but if you are having fomo or want to put more in but are waiting for the right time isn’t this a good way to do so?