When the price suddenly dives, you may want to consider buying. It's always paid off so far. It seems like a solid investment strategy, because Bitcoin is still very young. Therefore it's probable that the infrastructure will continue to grow, and it will continue to become more popular over time.
It's looking like the price is about to enter into a "slow'n'steady" phase of growth... I predict it will rise from $1100 to $1500 over the next month or so.
Consider this: If you have $10k lying around, you can set up a Coinbase account and buy 9.5654BTC right now. Then you can set up an MtGox account and sell those coins when the price climbs to $1500 (which seems pretty inevitable). Therefore your $10k will become $14,262 after fees, which you can then wire back to your bank account. $4k is a pretty nice chunk of change, so you may want to seriously consider it.
But you must be willing to keep your money in BTC if the price tanks. It requires a lot of discipline not to freak out and sell. The overall thing to remember is that BTC will almost certainly hit $1500; it's just a matter of when. So if you have a mutual fund, you may want to redeem it buy BTC instead.
Something else to consider: the price of BTC won't be able to double very many more times. That means an opportunity exists right now; an opportunity that won't exist very much longer. In a year or two, I predict you won't be able to count on BTC steadily rising in value. Whereas you can pretty much count on it between now and then. Anyone who's interested in growing their money on a long-term basis should seriously consider investing now.
EDIT: My comment was written mainly for historical purposes. A year from now I'm going to go back to this comment and see how wrong I am. This is the first time I've been confident in an investment opportunity of any kind, so it'll be interesting to see whether that confidence is misplaced.
EDIT2: Don't invest any money you aren't comfortable with losing, obviously. But it's unlikely you'll lose more than half of it. I'd say there's a 95% chance that putting up $10k now will net you $4k sometime in the future, because BTC is only going to grow in popularity and capability, not diminish. Therefore the question is how long you're comfortable with waiting.
EDIT3: Hm, I've hit a nerve. I wasn't trying to tell anyone what to do... but it probably sounded that way. Sorry. I was just doing a quick writeup of my own personal thoughts regarding Bitcoin's near future outlook. I'm nobody special, so please don't take financial advice from me.