//How to properly buy high, and sell low: Easier said than done.

How to properly buy high, and sell low: Easier said than done.

EDIT: Buy low and sell highI figured its about time I share my experience during dips. I hardly take loses. I started out last march , and now Crypto is a full time job for me. I spend 10hrs a day 7 days a week swing trading.Everyone seems to get the whole buy the dip wrong.Most people buy the dip. A friend of mine dumped in $2k buying the first dip from the ATH. It dipped futher. He hasnt recovered. He’s currently down 40% .To properly buy the dip, you have to have set amount of money on the side you are willing to spend buying the dip. However, you srent suppose to spend it all when buying the dip.Lets say the max amount to money you are willing to spend or lose is $2000Lets also say for example the market is at the ATH or $800,000,000,000 , and you made your first Crypto investment of $2000 into BTC when it was $16,000 each , and you have $2000 set aside for buying the dip.The market crashes to $600,000,000,000 And BTC is sitting at $12,000 each. This is where you decided to buy the dip .You shouldn’t spend the $2000 dip money. You’re suppose to spend about 25%($500) or else you could be looking at a further dip that doesn’t retrace, and your left with no capital to buy the new dip. The whole point of buying a dip is to make gains when your crypto retraces back to its previous position, and cover previous losses in your long term investments.Your initial $2000 after the first dip is now $1500. Keep this money seperste, you have to make up for that $500 loss somehow.So you buy the first dip for $500. You are now invested of $2500 , but you’re worth only $2000. Instead of being down 25% you’re now down 20% of your total investment.Now dip number 2 occurs. BTC is only worth $8k now. Now its time to spend another $500 out of your initial $2k buy the dip money.You’re now down a total of 37.5% of your total investment instead of 50%Now the market bounces back and BTC retraces back to $12,000 each.This is when you sell your $675 worth of BTC you bought during the dip for $500.You have now covered roughly 33% of your loss you took buying the dip at $12k. You now have extra capital to buy further dips.Now. If the BTC market goes back to $16,000 each. Thsts when you sell your inital earnings from the first dip you bought. This now leaves you with an extra $350, and your initial investment is even. Now if BTC dips sgain to $12,000 not only have your total loss shrunk to 7% , you now have an extra $350 to buy the dip remembering to still stick with the 25% rule,You can now spend $580 buying at 12k each, and $580 rebuying at $8.This isn’t an overnight thing. This could take a couple months, but the whole point is to eventually be in a position whereA. You can buy more and increase your position for long termOrB: be in a position where you have cashed out your initial,investment of $2000, and you still have the original $2,000 worth of BTC (Play Money)So again, using all your Dip money on one dip is very risky. It can dip further, and may never recover enough. Also you now have 0 capital to buy if it dips dither . its stupid to buy dips that way.So againBTC at $16k: Inital investmentBTC at $12k: bought the dipBTC at $8k: bought the dipBTC at $6k: bought the dipBTC at $3k: bought the dipBTC recovers to $6k: Sell your last Dip buy in.BTC recovers to $12k: sell the dip you bought at 6kBTC recovers to $16k: sell the $12k buy in .Etc etc.Thats how you buy low, and sell high. Otherwise spending all your dip money on one dip is nothing better than a 50/50 gamble on red or black at a roulette table , and thats how you really lose your money buying dips.I hope that was a friendly reminder to experienced investors , and I hope that clears it up for anyone who is inexperienced .EDIT:Its easier said than done. It takes discipline to not hold the money you invested in dips, dip investments should never be holds if you want your losses back right away.The idea is to narrow down your losses while increasing your position.

EDIT: Buy low and sell high

I figured its about time I share my experience during dips. I hardly take loses. I started out last march , and now Crypto is a full time job for me. I spend 10hrs a day 7 days a week swing trading.

Everyone seems to get the whole buy the dip wrong.

Most people buy the dip. A friend of mine dumped in $2k buying the first dip from the ATH. It dipped futher. He hasnt recovered. He's currently down 40% .

To properly buy the dip, you have to have set amount of money on the side you are willing to spend buying the dip. However, you srent suppose to spend it all when buying the dip.

Lets say the max amount to money you are willing to spend or lose is $2000

Lets also say for example the market is at the ATH or $800,000,000,000 , and you made your first Crypto investment of $2000 into BTC when it was $16,000 each , and you have $2000 set aside for buying the dip.

The market crashes to $600,000,000,000 And BTC is sitting at $12,000 each. This is where you decided to buy the dip .

You shouldn't spend the $2000 dip money. You're suppose to spend about 25%($500) or else you could be looking at a further dip that doesn't retrace, and your left with no capital to buy the new dip. The whole point of buying a dip is to make gains when your crypto retraces back to its previous position, and cover previous losses in your long term investments.

Your initial $2000 after the first dip is now $1500. Keep this money seperste, you have to make up for that $500 loss somehow.

So you buy the first dip for $500. You are now invested of $2500 , but you're worth only $2000. Instead of being down 25% you're now down 20% of your total investment.

Now dip number 2 occurs. BTC is only worth $8k now. Now its time to spend another $500 out of your initial $2k buy the dip money.

You're now down a total of 37.5% of your total investment instead of 50%

Now the market bounces back and BTC retraces back to $12,000 each.

This is when you sell your $675 worth of BTC you bought during the dip for $500.

You have now covered roughly 33% of your loss you took buying the dip at $12k. You now have extra capital to buy further dips.

Now. If the BTC market goes back to $16,000 each. Thsts when you sell your inital earnings from the first dip you bought. This now leaves you with an extra $350, and your initial investment is even. Now if BTC dips sgain to $12,000 not only have your total loss shrunk to 7% , you now have an extra $350 to buy the dip remembering to still stick with the 25% rule,

You can now spend $580 buying at 12k each, and $580 rebuying at $8.

This isn't an overnight thing. This could take a couple months, but the whole point is to eventually be in a position where

A. You can buy more and increase your position for long term

Or

B: be in a position where you have cashed out your initial,investment of $2000, and you still have the original $2,000 worth of BTC (Play Money)

So again, using all your Dip money on one dip is very risky. It can dip further, and may never recover enough. Also you now have 0 capital to buy if it dips dither . its stupid to buy dips that way.

So again

BTC at $16k: Inital investment

BTC at $12k: bought the dip

BTC at $8k: bought the dip

BTC at $6k: bought the dip

BTC at $3k: bought the dip

  • BTC recovers to $6k: Sell your last Dip buy in.

  • BTC recovers to $12k: sell the dip you bought at 6k

  • BTC recovers to $16k: sell the $12k buy in .

Etc etc.

Thats how you buy low, and sell high. Otherwise spending all your dip money on one dip is nothing better than a 50/50 gamble on red or black at a roulette table , and thats how you really lose your money buying dips.

I hope that was a friendly reminder to experienced investors , and I hope that clears it up for anyone who is inexperienced .

EDIT:

Its easier said than done. It takes discipline to not hold the money you invested in dips, dip investments should never be holds if you want your losses back right away.

The idea is to narrow down your losses while increasing your position.