@hischild4eternity Okay, I often ask myself this question too. In an ideal world, yes, I do assume BTC can generate a constant 3% return every month. But in reality, the answer is no. So, how do I tackle this issue?
Let's say I invest 10k this month, aiming to gain RM300. I'll divide the 10k into five portions, then buy in when the price seems right for me. (Actually, I realize I'm essentially doing DCA, just over a shorter period). Once my portfolio hits 10.3k, I'll sell 100% of the crypto I'm holding and wait for the next month to top up 1k and use 11.3k to trade again.
Yes, as I mentioned earlier, there are months when I fail to achieve a 3% return. So, I know I need to trade more in the following month to cover the losses. It might sound like gambling, but DCA-ing is similar; the only difference is that I calculate my profit on a monthly basis, while DCA players hold for longer periods.
For example, in June 2023, my portfolio was down by 2%, so I just held it for another month without cashing out, then topped up 1k to lower my average price (again, realizing I'm doing DCA) and sold everything once I hit my July target.
Now, why do I do this instead of just DCA-ing for longer periods? The main reason is flexibility. If I see better options, I can cash out and invest elsewhere, like taking advantage of a Moomoo promotion that offered an Apple share for depositing 8k that month. So, I stopped trading crypto and put my money in Moomoo for easy money.
Okay, now, is it possible to gain 3% every month? The answer is yes. It doesn’t mean you just invest 10k and magically gain 3%. Sometimes, I need to trade 2-3 times to achieve it. If I gain 2%, I'll cash out, wait, re-enter, and if I gain another 1%, that sums up to 3% - goal achieved, and goodbye.
