Peter Brandt is a well-known trader and is also the CEO of Factir LLC, which was founded in 1980. Peter has years of experience, and recently he shared a trading rule which he holds sacred. He says that “Never add to a losing trade.” As an investor or trader, not all your bets will be fruitful or go the right way, and it’s important to accept that. Controlling your losses is important to stay profitable in the long term. And in that sense, Trader Peter Brandt advises against buying the Bitcoin dip.
Peter’s take on buying BTC dips
When we talk about buying Bitcoin dips, the idea is to average the price of our holdings and expect to make more profits when it goes up again. Well, while it is a good idea to implement, it is also important to accept the idea that the dips can keep coming, and an asset might not ever go up again or at the least take a very long time. This is the premise of what Peter tried to convey when he advised against buying the dip.
He shared a very good example of this in a tweet. In 1980, Silver $SI_F bottomed out and reached a low of $3.65 with an all-time high of $50. The price of the same didn’t start going back up for another 24 years. Peter did say that it’s not necessary that Bitcoin will suffer the same fate, but he never adds to a losing trade. So, it helps him minimize losses.
Peter also said that he recently saw a diversion of Bitcoin’s parabolic movement and commented on the same. He added that predictions must change with circumstances, and the parabola might not be driving the force in BTC.
So, should you buy the dip?
After Peter’s take on dips, I would just like to add a few things. First is the risk appetite you have when investing in a volatile asset like Bitcoin will decide whether you should buy the dip. It’s obviously not advisable to put your life’s savings or sell your house to buy a dip, but if you put a rather small portion of your income in an asset you believe in, it’s not a bad idea. Secondly, it’s important that your reasoning behind buying the dip is correct. If it is because influencers are saying so, then it’s probably a bad idea.
What are your thoughts as trader Peter Brandt advises against buying the Bitcoin dip? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Binance gets notice from Pakistani government after a million-dollar scam.
