Buying the dip

Before investing in any dividend stocks or cryptocurrency, you need to have established a system where a flat/fixed percentage of your active income is set aside for investing.

Then you need to spend time and put in the effort to understand each stock or cryptocurrency, the problems they solve, the products they have, how they establish their dominance (moat) that sets them apart from their competitors and how they plan to be future proof etc.

Once you have established that, you should have a list of top 10, then you start to allocate funding for each of the listed stocks and cryptocurrency that you have researched and understood.

There are a few ways that investors invest:

  1. periodical dollar cost averaging (DCA)
  2. timing the market
  3. buying the dip

This article is about buying the dip, but let's cover all three

periodical dollar cost averaging (DCA)

This is my usual way of investing.

I set aside X amount every month/quarter, and once the amount is enough, it'd automatically be dispersed across my cryptocurrency and dividend stock portfolio.

Regardless if it's "high or low".

The dollar cost averaging is based on consistent investing throughout periods of time, so that after 5-20 years, your amounts invested would have a "blended amount" of ups and downs that will equal out to be averagely alright.

This way is easy, brainless, and I love it.

Especially for Index Funds investing.

timing the market

Usually I shrug when people tell me that they want to time the market, because "entry point" is very important.

And it IS!

...just that, given the fact that I have a busy life and schedule (business, kids, family, church etc) - I don't have time to time the market. Which explains my love and preference for dollar cost averaging (DCA) approach above.

If you're trying to time the market, why it's difficult is because we don't have crystal balls to read the future - it's really too open-ended, and you'd end up "waiting too long".

If you have time, then fine.

If you don't then don't do so.

buying the dip (sort of timing the market)

ONE way I "sort of" time the market: I keep my ears and eyes peeled for bad news, scandals etc, which almost always causes prices to slide. Then, I buy in gradually along the slide eg if I have $5000 to buy into a cryptocurrency that is priced at $1000.

I will set buy criteria to buy at $900, $800, $700, $600 etc.

This will allow me to buy on a slide-gradual basis, and gives me an "average downhill price purchase" BECAUSE we don't know when is the rebound/hard floor.

But it requires steady hands and heart, because when people are selling, and you plan to buy, it can be scary.

But if you'd spent time and put in the effort to understand each stock or cryptocurrency, the problems they solve, the products they have, how they establish their dominance (moat) that sets them apart from their competitors and how they plan to be future proof etc - this will be your guide and conviction

Enjoyed this article? Share it with your friends by clicking one of the buttons:

Even better - share your thoughts and comments below:

quick links


Back To Top

Search In NigelChua

What I'm Working On

NigelChua.com

NalcoGroup.com

TherapyEntrepreneurs.com

XtendHealthAsia.com

WisdomOfSeneca.com

BeePollenForHealth.com

Online Business & Marketing Tools I Use

Solo Build It

GetResponse Email Marketing

Shopify

The Hoth SEO Specialist

Google Mail/Suite

Supplements & Stuff I'm Using For My Health

Total Balance Men's Premium

Kiwi Klenz

Lipi Rite

Bee Pollen Energy

Omega QH Ultra

Neuro Natural Serenity

Male Rejuvenator

Green Lipped Mussel Powder Capsules

Aquasana AQ 4000 Counter Top Water Filter

Cryptocurrency Exchanges I'm Using

Quionex Exchange (Fiat - BTC/ETH)

Qryptos Exchange

Offline Hardware Wallet To Secure Your Crypto-Assets Such As Bitcoin

Trezor

Cryptocurrencies I'm Invested In

Bitcoin (BTC)

Qash (QASH)

Rock Token (RKT)

Ethereum (ETH)

Zencash (ZEN)

Cindicator (CND)

Vechain (VEN)

0x (ZRX)

Golem Network (GNT)

Stellar Lumen (XLM)

Cardano (ADA)

Funfair (FUN)

Gifto (GTO)

Nebulas (NAS)

Electroneum (ETN)

Digibyte (DGB)

ETHLend (LEND)

Smartcash (SMART)

Tierion (TNT)

Loopring (LRC)

Deep Brain Chain (DBC)

Zeepin (ZPT)

Zilliqa (ZIL)

Snip (SNIP)

Bitjob (STU)

Siacoin (SC)

Xperience Coin (XP)

IOSToken (IOST)

Myriad (XMY)

FidentiaX (FDX)

Dentcoin (DENT)

Reddcoin (RDD)

Bitbean (BITB)

Dogecoin (DOGE)

Books I'm Reading

Holy Bible

Tribe Of Mentors

Seneca Letters From A Stoic

Seneca On The Shortness Of Life

See my full book/read list here.

Blogs I'm Following

Tim Ferriss

Pat Flynn

Tony Robbins

Ramit Sethi

My Personal Goals

SGD 2,000,000 invested in dividend stocks with average 5% returns per annum by 45

SGD 2,000,000 in cryptocurrency

Owning, affording and living in a landed property in Singapore (or relocated to another country without worry of money) by 40

Publish at least one book by 40 years old

Online businesses serve readers and clients well (ie readers make more money, have happier/freer life etc), and website makes SGD 10,000 per month

Ongoing: spend more quality time with children, wife, family, bible, God.