Newcomers often talk about averaging down to lower their cost, but it’s really just calculating an average price. For example, someone bought 1000U worth of $ETH at 2300. Now ETH is around 2116, so if they buy another 1000U worth, they’ll have about 0.907 in total, bringing their average price down to around 2204. If the price rises back to 2204, they’ll break even; they don’t have to wait for 2300.
It sounds great, but averaging down means adding to a losing position. If the price keeps falling to 1900, they’ll lose twice as much. I’d first think carefully about why that price is worth buying more at, rather than doing it just because I’m stuck in a losing position and want to break even sooner. The same goes for $BTC : without a plan, continuing to buy as the price falls can easily leave you with no ammunition.
#新手科普 #补仓
It sounds great, but averaging down means adding to a losing position. If the price keeps falling to 1900, they’ll lose twice as much. I’d first think carefully about why that price is worth buying more at, rather than doing it just because I’m stuck in a losing position and want to break even sooner. The same goes for $BTC : without a plan, continuing to buy as the price falls can easily leave you with no ammunition.
#新手科普 #补仓