The money you lost won’t become less just because you put in another round of investment. It will only pull your new money into the same pit.
The phrase “average down your cost” applies only to your position size—not to your judgment.
If you bought it wrong and the price drops, and you add more, your average price may look better—but your judgment is still wrong. It’s just that the mistake has grown.
Newcomers are most likely to get caught here: unwilling to accept the loss, they use the second chunk of money to “prove” that the first one wasn’t wrong.
In the end, the first time you misread it, and the second time you doubled down out of spite. Together, you end up with a position you can’t clearly justify.
Losses aren’t something you necessarily have to win back. They’re just costs you’ve already paid—nothing to do with tomorrow’s price.
#BTC #ETH
The phrase “average down your cost” applies only to your position size—not to your judgment.
If you bought it wrong and the price drops, and you add more, your average price may look better—but your judgment is still wrong. It’s just that the mistake has grown.
Newcomers are most likely to get caught here: unwilling to accept the loss, they use the second chunk of money to “prove” that the first one wasn’t wrong.
In the end, the first time you misread it, and the second time you doubled down out of spite. Together, you end up with a position you can’t clearly justify.
Losses aren’t something you necessarily have to win back. They’re just costs you’ve already paid—nothing to do with tomorrow’s price.
#BTC #ETH