What do you mean here by averaging into the market?
As you can average down and average up. Averaging down refers to buying more of what you already have when the price goes down, while averaging up means buying more when the price goes up. Though I agree that you don't have to care too much about the price going up as no matter how exactly you are averaging into the market, you should more care about the price going down since in the latter case your losses will be multiplied even if your break-even point goes lower (in the case of averaging down). And that should be your primary concern in the downtrend market, not the break-even point (as you have already missed it)
As you can average down and average up. Averaging down refers to buying more of what you already have when the price goes down, while averaging up means buying more when the price goes up. Though I agree that you don't have to care too much about the price going up as no matter how exactly you are averaging into the market, you should more care about the price going down since in the latter case your losses will be multiplied even if your break-even point goes lower (in the case of averaging down). And that should be your primary concern in the downtrend market, not the break-even point (as you have already missed it)
What do you think I mean? Read the post. We have been going down for over a year, so I am obviously referring to averaging on the way down. In this case it matters a lot what the break-even point is, especially with how people here only pay attention to how fast they can make profits
Okay then
It doesn't matter how much lower the price keeps going as long as you have enough fiat ready to put into action, and there is no way to know beforehand if the price will actually keep going down, because at one point the bottom is in and we will be going up again. That how investing in stocks or any other asset works as well. You buy into it with whatever percentage of your balance, and have the rest aside in case the price takes a dip
That's what I wanted to address
Actually, I don't need to say anything (as you won't believe me anyway). I will just repeat what John Keynes once said (presumably after losing a fortune in bad investments). He said that the markets could stay irrational longer than you could stay solvent. And that's specifically about what you are suggesting to do, i.e. adding to a losing position (or averaging down as they metaphorically or euphemistically call it)
You don't know how low the price will go, you can't even be 100% certain that it won't stop at 0. In simple terms, what you suggest is a straight path to disaster, a highway of sorts. And whether you turn out right or wrong this time is ultimately irrelevant because it is still a one-way street that will lead you to losing your money in the end. But you are on your own here, of course, I just want others to know the possible consequences of such actions
