The "Buy the Dip" Trap They Don't Teach You
Let me break this down for you like a teacher explaining a brutal math problem—because that's exactly what this is.
You’ve heard it a million times:
"Just DCA!"
"Buy the dip—it’s free money!"
But here’s the cold, hard truth they won’t show you—the math of losses.
The Painful Reality of Drawdowns
Lose 10%? You need +11% just to break even. (Not bad, right?)
Lose 50%? Now you need +100%—a DOUBLE just to get back to zero.
Lose 90%? You need a 10X (900%) rally just to see your original capital again.
Let that sink in.
If your coin crashes 90%, it doesn’t just need to "go back up"—it needs to 10X from the bottom just for you to break even. No profits. Just back to where you started.
The Psychological Trap
When your coin finally starts recovering, the same voices that told you to "HODL" will now scream:
💎 "Don’t sell! This is just the start!"
🚀 "We’re going parabolic!"
But think critically:
👉 Your break-even point is someone else’s 900% profit.
If you were up 900%, would you hold forever—or take profits?
The Hidden Truth About "ATH Discounts"
People love saying:
"It’s down 80% from ATH! Steal!"
But they never mention:
Does this project still have demand?
Is the team still building?
Is the market even interested anymore?
Look at coins like $SAND, $POL, or your favorite bag—many didn’t just "dip." They collapsed. And recovery isn’t just about waiting—it’s about whether the project can actually regain relevance.
When "Buying the Dip" Works (and When It Doesn’t)
✅ Works:
Strong projects in healthy uptrends
Dips that hold key support levels
High volume buying at lows
❌ Doesn’t Work:
Dead projects with no volume
"Cheap" prices after a 90% crash
Hopium-based buying ("It can’t go lower!")
Before you "buy the dip," ask yourself:
Is this a dip… or a death spiral?
Am I buying value… or a value trap?
If this drops another 50%, do I still believe in it?
Be smart. Trade wisely.
