Topic: Average down and relax... (Read 463 times)
indeed the average coin price on the trading market decreases, all coins price decreases, chances are if the price of bitcoin decreases, the price of all coins in the follow-up market decreases, maybe in November the market price of the price will improve.
Bitcoins fluctuate almost like the sine waveform they have when they are down, which makes bitcoin more attractive. Investors will look for opportunities to buy at low bitcoin and will sell it at it. Go up to profit from the investment.
Maybe from Rilex it also takes courage to StopLoss.
Because when you fall too deep it's hard to go back to get up.
Believe everything will be beautiful at the time.
Because when you fall too deep it's hard to go back to get up.
Believe everything will be beautiful at the time.
almost all averages down, including Altcoins TRON who has migration events from the Ethereum network to his own network.
maybe when there is airdrop event will definitely go up the Altcoins price, because airdrop is an event where everyone is entitled to get free Altcoins, so who does not want free coin in this world? lol!
Most people do not have the reserves to keep investing. It makes sense to only invest about 60% of what you want to invest so you always have a backup for such a scenario. Opportunity for you to go and buy more coins, do not be sad and feel sorry when the low price is just normal, just make everything run with the current and take every negative as a positive way.
This is one of the reason not to invest everything at one go, if it does get dumped then you still have sufficient funds to average down and cut your losses. Some people go all in with everything which means losses have to be accepted until further funding can be found to either invest elsewhere or average down.
now btc~ 7350 usd,eth~ 580 usd,the crypto market move very slow slow,i also buy with all money i have,i only see the market,not do nothing,pervious i think this year is year of crypto market,it will strong grow up but seem i wrong,this year the crypto market need stable before it increase.i hope the end 2017 and next 2019 the crypto market will strong grow up
almost all averages down, including Altcoins TRON who has migration events from the Ethereum network to his own network.
maybe when there is airdrop event will definitely go up the Altcoins price, because airdrop is an event where everyone is entitled to get free Altcoins, so who does not want free coin in this world? lol!
No, Airdrop is already dead and I doubt that it can really affect the price of crypto as this point. I would believed if this is 2017 but airdrops today? Nah, I wouldn't bother to join them at all. Most of them are scams already, requiring you to submit documents and I even read others require yo to deposit some Eth before they can give you your bounties. I like though the average down strategy, at least you minimize your potential lost and then at the same time give you advantages to gain more profit at the end.
almost all averages down, including Altcoins TRON who has migration events from the Ethereum network to his own network.
maybe when there is airdrop event will definitely go up the Altcoins price, because airdrop is an event where everyone is entitled to get free Altcoins, so who does not want free coin in this world? lol!
When I first started to invest I used to panic whenever the market dropped by a few dollars, now I've started to enjoy the drops. It provides an ideal opportunity to average down, something I really should have learned about earlier, but glad I did eventually. For those who don't know what 'averaging down' is, it is buying more coins (in this example anyway, but works in exactly the same way with regular stocks) when the price drops to bring down your average buying price, therefore lowering the price at which you can cash in a profit. Using Bitcoin as an example...
1. Bought 1 BTC at $18,000 back in January (aaaarrrgggghh, unlucky...)
2. Price of Bitcoin drops to $9,000 (aaaarrrggghhh, why me...) - your $18,000 of Bitcoin is now only worth $9,000 and you cannot make any profit until it gets back above $18,000 - or can you??
3. Buy 1 BTC at $9,000 (clever, buy the sh*t out of that dip) - your average price paid for 1 BTC is now 'only' $13,500
4. Cash in profit at any point above $13,500 (champagne corks popping)
Obviously there are additional factors to work into this, as it would normally be worth making more than one extra purchase as the price drops to get a better average and to cover any sudden bounces back up, but it definitely makes market drops easier to swallow. It also emphasises the need to not put all your eggs in one basket and make sure you have the funds to buy 'if' (translates in cryptospeak as 'when') the market falls. Deciding when you make these averaging down purchases is the key, as no-one has unlimited funds to keep buying more if the market keeps dropping, but plenty of research and use of technical analysis will go a long way to helping pick out buy points.
1. Bought 1 BTC at $18,000 back in January (aaaarrrgggghh, unlucky...)
2. Price of Bitcoin drops to $9,000 (aaaarrrggghhh, why me...) - your $18,000 of Bitcoin is now only worth $9,000 and you cannot make any profit until it gets back above $18,000 - or can you??
3. Buy 1 BTC at $9,000 (clever, buy the sh*t out of that dip) - your average price paid for 1 BTC is now 'only' $13,500
4. Cash in profit at any point above $13,500 (champagne corks popping)
Obviously there are additional factors to work into this, as it would normally be worth making more than one extra purchase as the price drops to get a better average and to cover any sudden bounces back up, but it definitely makes market drops easier to swallow. It also emphasises the need to not put all your eggs in one basket and make sure you have the funds to buy 'if' (translates in cryptospeak as 'when') the market falls. Deciding when you make these averaging down purchases is the key, as no-one has unlimited funds to keep buying more if the market keeps dropping, but plenty of research and use of technical analysis will go a long way to helping pick out buy points.
These strategy works perfectly in good cryptocurrency. But once this approach applied in shitcoins then your pains will start to kick in. As time goes by the losses will accumulate until it will reach to the point that you have incurred heavy losses. I just like to remind all investor who are willing to do these to apply precaution on every step. Not every plan works perfectly in people; it is needs to review or check the effectiveness of the strategy.
For one the people that bought at $19k usually used all their available savings or maxed out their credit cards. They want to average down but they can't.
If anyone spent all their savings and/or maxed out their credit cards, then they have not learned the basics of investing, and presumably will not have a clue about averaging down anyway.
Second of all most of those people who bought at $19k usually sold at $6k because they assumed "it will go to $5k" and we're going to rebuy cheaper. However $5k never came and they most likely chased the market again and bought yesterday at $9800.
I doubt (hope?) that most of those people didn't sell at a 65% loss on an assumption it will drop lower. And if they did, then once again, they need to get back to the drawing board on trading basics.
I actually think you are off the mark though, and using the term 'most' for all of your statements is guessing at best. Either way, good luck to us all, even the ones who have no clue what they are doing, as they need it the most.
Your method is not a bad idea however there are many reasons why it doesn't work for most people.
For one the people that bought at $19k usually used all their available savings or maxed out their credit cards. They want to average down but they can't.
Second of all most of those people who bought at $19k usually sold at $6k because they assumed "it will go to $5k" and we're going to rebuy cheaper. However $5k never came and they most likely chased the market again and bought yesterday at $9800.
For one the people that bought at $19k usually used all their available savings or maxed out their credit cards. They want to average down but they can't.
Second of all most of those people who bought at $19k usually sold at $6k because they assumed "it will go to $5k" and we're going to rebuy cheaper. However $5k never came and they most likely chased the market again and bought yesterday at $9800.
This of course doesn't apply to something that's been revealed as a scam like bitconnect, though, so be sure to make sure your project isn't tanking for a reason like this before you go deeper!
Agreed, no point in throwing more money away. Definitely need to analyse why the drop has happened, then make your decision accordingly. I guess I was more talking about the recent market drops which have created the opportunity for almost every investment to be 'averaged' - if you have the money to do so. Some will always have to be written off as 'lesson learned'.
This is exactly how I look at trading as well. Oh I just bought something that went down a ton? Time to just buy more of it so my average cost is way down and I can get out in profit earlier than my initial price. This of course doesn't apply to something that's been revealed as a scam like bitconnect, though, so be sure to make sure your project isn't tanking for a reason like this before you go deeper!
When I first started to invest ....
here is your problem right in the beginning of your comment!
you have to decide whether you want to start trading bitcoin or you just want to make an investment in bitcoin. i say they are two very different options.
if you want to just invest, none of the things you are listing after this makes any sense because they are market fluctuations and an investor should not even care about these short term fluctuations anyways!
if you want to trade then that means you have to be more serious about it. you said you bought at $18,000 then follow it up with "unlucky"? that doesn't make sense. ok price dropped but so what? as a trader you should immediately adjust your strategy with the market. you sell at a loss with your stop loss and then buy back at the bottom (in the dip) sell on top buy back in the dip, rinse and repeat. that is what trading is not just buying and holding and hoping for the best and then saying things like "unlucky".
I think cut loss and averaging are some technical part of risk management in trading, both of them should be used with good analytical strategy and right approach to understand the market situation. Usually, good traders have their own rule to be obeyed tightly by themselves and this rule contain some of risk management strategy such as when to cut loss, and what situation to make averaging.
Not planning to cash out any time soon, that's the whole point of the post. I have increased my position in a number of coins over the last couple of months, and happy I was able to get the opportunity to pick up some new ones too. Overall, the last couple of months should, over time, give me a good return. I am not looking short term (for most of them anyway, although there are a couple I would like to get out of), I am looking at least towards next year, and for a few of them, a lot further than that. The current market, in my opinion, will look almost unrecognizable in a few years. Just keeping my fingers crossed that I put my money on the right horse(s).
You got the right strategy but I think its too early for you to cash out your money when you only gain few profit. You better practice your patience to wait for the price to increase so that you'll have larger amount of profit. Also, I think you need to research more about the strategies that could help you out. Investing is risky so we better be practical about our decisions. Keep holding!
When I first started to invest ....
here is your problem right in the beginning of your comment!
you have to decide whether you want to start trading bitcoin or you just want to make an investment in bitcoin. i say they are two very different options.
if you want to just invest, none of the things you are listing after this makes any sense because they are market fluctuations and an investor should not even care about these short term fluctuations anyways!
if you want to trade then that means you have to be more serious about it. you said you bought at $18,000 then follow it up with "unlucky"? that doesn't make sense. ok price dropped but so what? as a trader you should immediately adjust your strategy with the market. you sell at a loss with your stop loss and then buy back at the bottom (in the dip) sell on top buy back in the dip, rinse and repeat. that is what trading is not just buying and holding and hoping for the best and then saying things like "unlucky".
Fair point, I think I phrased it wrong. I should have said 'When I first started to take an interest in cryptocurrency...'. I have only been involved for the past six months and have held Bitcoin since then. I also do some trading with a number of altcoins, but not on a daily basis, nowhere near. My point was more that I didn't know about that strategy until further in, and it is a very useful one to keep in mind when the market drops. I really only trade to hopefully build up my Bitcoin, along with a couple of others that I think (hope) will pay off down the line. Using the word 'unlucky' was just to emphasise the dangers of buying after a long run up (and/or bad timing). Everyone says 'buy the dip', and it is great when you catch it; but I thought I bought the dip a few times, only for it to keep dipping. I do not have large positions (not yet anyway), and was lucky enough to not invest all my fiat, as it was definitely not a strategy based on knowledge at the time. Definitely still learning in all aspects, and have been fortunate enough to get some great feedback just by posting this topic.
You need to initially correctly draw up a trading plan, use stop losses. You must accurately represent the point of sale in advance when the price goes down or up. This will help to avoid large losses and reduce risks. Sometimes you have to sell at a loss and this is normal for trading. Everyone can be wrong.
You are right, take the downtrend as an opportunity for you to go and buy more coins, don't be sad and feel sorry when the price is going low it is just normal, just make things go with the flow and take every negative as a positive way.
that's right take the opportunity to buy more and relax don't get panic read some news and articles 'cause maybe it can help, and perhaps this is not the end of bitcoin and surely soon it will start to increase just keep holding , Jump to: