Hello, guys.
Today we want to tell you about averaging. It’s a very simple yet extremely powerful move that allows you to make profit even when the price of the asset you bought dropped significantly instead of expected rise.
How does it work? You buy an asset you think will cost more tomorrow than it does today. If everything goes smoothly you sell it at a higher price and you have your profit. Sounds great, doesn’t it? But what if the asset you bought becomes cheaper instead? What if the market doesn’t behave the way you expected it to?
Many traders start panicking and sell the asset quickly. Their decision is caused by fear. If they don’t sell it now – its price will drop even more and they will lose even more money. So they opt for the less painful scenario: lose money now. That’s life, isn’t it?
Well, there is another way. You can make money even when the asset you bought lost value. All you need is a good strategy and a price raise (the price of the asset can be significantly lower than the price you bought it at initially). How is it possible?
https://imgur.com/a/CGQAQspAveraging. When the asset you bought loses its value – you should buy more of it instead of selling it A.S.A.P. But why would I buy an asset that already cost me? Because by doing that you average the price of the asset you bought and make the Take Profit level lower.
Let’s say you bought an asset (some crypto-coin) at 100$. You wanted to sell it at 110$ taking 10% benefit. You bought 10 coins and expected to sell them. But today your coin costs 87$. You can sell it at this price and accept that you lost 13% of your investment. But you also can be smarter than that and buy 10 more coins at this price. So you have 10 coins that cost 100$ and 10 that cost 87$. The average coin price for you is 93.5$. So even if the price of the asset you bought initially will never reach 100$ again you can sell it at say 95$ and still get some benefit from it.
https://imgur.com/a/mjQYTtlThis is what averaging is all about. And if the price goes down you can buy more of this coin lowering the average price and creating an opportunity to close the deal with a profit in a situation that makes it seem impossible. The thing is that, this trade logic may successfully work only at certain market situations. It is a competent estimate that makes it possible to get profit using such an algorithm. Before it was possible to do it only by experienced traders, but now…Trodax does that for you!!!
With Trodax.cat you can make money in the situation where you would normally lose because of the emotions. The secret is simple: our bots based on the hybrid intelligence have no emotions but mathematically proven logic and all the data they need to trade successfully.
Trade smart.
Trade with Trodax.com.