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

Where to next?

Head to Home Page

Start with these:

  1. Start Here
  2. FIRE Manifesto
  3. FIRE 101 and
  4. The Passive Income Lifestyle Framework.

They are my recommended to start with articles that ties in the entire framework, philosophy and working model of FIRE Lifestyle

Save-Earn-Invest More Articles

  1. Ruthlessly Cull Unnecessary Expenses
  2. Respect The $10s
  3. Small Tweaks To More $10s
  4. $150K+ By 35 - Reality Or Delusion?
  5. Start An Online Side Hustle With Solo Build It
  6. Start Investing For Passive Dividend Income In Just 3 Days
  7. How To Retire With $3 Million
  8. Invest To Spend On Luxury & Liabilities (Whatever You Want*)
  9. Shocking Maths Of Early Retirement (It's Less Than You Think)

See more Save, Earn & Invest More articles here.

Others

  1. Contact me by email at (even just to say hi) at nigel@nigelchua.com
  2. See the latest articles and updates at the blog
  3. Check out my resource page to see the tools I use
  4. See my top two resources for online business below: Wealthy Affiliate (left) and Solo Build It (right) - both have very specific strengths and functions

Wealthy affiliate: #1 to learn how to build profitable wordpress online businesses

Wealthy Affiliate is my recommended for WordPress online businesses.

I've been a premium member of Wealthy Affiliate since 2015 and there are a number of pros to be with them, which you can read at my Wealthy Affiliate review here.

One of my favorite points of WA is that they have a try-before-you-buy forever-free membership which you can sign up here for free. No credit card needed.

solo build it (sbi): #1 for offline businesses local search engine ranking, traffic and lead generation

Solo Build It (SBI) is my #1 tool for local search engine optimization (SEO) domination as well for online marketing which I've been using since 2010 personally for multiple projects.

Read why I chose Solo Build It...

...and more importantly, why I still stay with Solo Build It (SBI) till today and use them exclusively for all my SEO, traffic and e-lead generation.


Back To Top