The price is back at the average entry price, so why am I still not breaking even? Many people can't explain it!
Adding to a long position at a price below your average entry price lowers the average, but it also increases your position size, so a pullback of the same magnitude results in a bigger loss.
Averaging down only makes the average price look more comfortable; it doesn't reduce the risk of the position as a whole. The larger your position, the greater the profit or loss caused by the same price movement.
Make sure you understand the rules before getting started. Don't make decisions based on gut feeling.
$BTC 83450.96（+0.71%）
#BTC
Adding to a long position at a price below your average entry price lowers the average, but it also increases your position size, so a pullback of the same magnitude results in a bigger loss.
Averaging down only makes the average price look more comfortable; it doesn't reduce the risk of the position as a whole. The larger your position, the greater the profit or loss caused by the same price movement.
Make sure you understand the rules before getting started. Don't make decisions based on gut feeling.
$BTC 83450.96（+0.71%）
#BTC