When it comes to trading, call me crazy but I usually buy more when the price is dropping. Going against the flow usually rendered good results for me so far. I follow systematic investment plan which emphasizes on placing orders of various quantities at various levels of price. Please do your own research before investing as you might not get the same results as mine.
That isn't crazy as you are actually working with some laid down plan and calculations. You're in fact, implementing, the averaging strategy, which is a sound technique for any asset with some volatility. Knowing the average daily range of the asset helps one in determining the next level to place another trade, in case the first or earlier trade didn't go well and after a few of such trades, price most likely reverses, as no market continues indefinitely in any one direction.Anyone interested in try this technique must first ensure they have good enough balance to cushion the extended exposures and it is not suitable for all assets.
Yes exactly, price averaging strategy. I strongly follow warren buffet's principles of trades. He says, 'Be Fearful When Others Are Greedy and Greedy When Others Are Fearful'. This proves extremely helpful in trades especially in the case of pump and dump schemes. I have seen many people lost their money by following other's opinion and chanting in the troll box. I usually stay away from such shouting place and never follow other's opinions without proper research.
