Real wealth is built by buying during corrections. But all u hear is just "buy the dip," and nothing practical. Here’s the first detailed playbook on how to buy the dip. (+ tips on how to hold through 1000x) 🧵👇
Before I start this mega-thread... Most people would charge $1,000+ for this info, but I’m sharing it FREE cause I’ve been through it and want to help others who are still in the trenches. So you can appreciate this following me & like this post! ‼️‼️‼️ 1/➮ Buying the dip means buying at the lowest possible price The question immediately arises: how and who can predict this? The answer is no one can But we can get as close as possible to it by having the right strategy👇
2/➮ "Buying the dip" consists of 3 factors that need to be followed for max success: - when to buy - what to buy - how to buy If we have the answers to these questions, we’ll successfully buy the dip Let's dive into each one: 3/➮ When to buy To understand when to buy, let's look at the typical bull run pattern It looks like this: Halving -> 18 months -> ATH This entire period can be divided into two phases: growth and peak Now, let's break down the stages in more detail👇
4/➮ Bull Run Stages Growth: The stage where you need to accumulate your positions and build your portfolio, lasts for ~14 months Peak: The stage where you need to actively take profits from your positions and move them into stables lasts for ~4 months
5/➮ Bull Run Cycle Psychology An additional method that will help you navigate is the Wall Street Cheat Sheet It clearly shows the bull run chart and its psychology Evaluate the situation in the crypto community and estimate which stage you're in
6/➮ What to Buy Everyone wants to make maximum profit, 100x and more, but the main thing is not to lose it all You can make 50%-100% profit on $BTC or $ETH But the real profits rn come from memecoins For more about memecoins follow me & real my latest posts! I share everyday valuable content ‼️‼️‼️ 7/➮ Build a portfolio with both long-term plays like $BTC, $ETH, $SOL As well as short-term on-chain plays like low-caps/memes This way, you balance the risk % of your portfolio through diversification Also, remember to keep a % in stables ‼️‼️‼️ 8/➮ Now we've discussed when to buy and what can be bought in general But the main aspect of "buy the dip" is the correct execution of the purchase. For this, we will use the cost-averaging strategy Let me explain more👇 ‼️‼️‼️ 9/➮ Cost-averaging strategy in simple terms, is buying in parts, lowering the avg buy price For example, with a $1k portfolio, it will look like this: - 1st buy $100 - 2nd buy $200 - 3rd buy $300 - 4th buy $400 But we need also to know when exactly to buy by such parts: 10/➮ Usually, it's best to use $BTC as the baseline price So, as soon as $BTC drops by 5-7%, we buy more Also, remember that altcoins/memes drop by 10%-20% during this time It's important to understand that some altcoins don’t react to $BTC's price movements ‼️‼️‼️
11/➮ Let's summarize our cost-averaging strategy, and it will look like this: $BTC drops by 5% -> 1st buy $100 -> $BTC drops another 5% -> 2nd buy $200, etc This way, we will minimize the average buy price and get closer to buying the dip
12/➮ Knowing when to buy, what to buy, and how will definitely lead you to buy the dip. But for successfully taking profits and building a portfolio, u also need good risk management strategy ‼️‼️‼️ ➮ Liked this thread? I write educational threads daily, so don't forget to: Follow me & like this post!