Average down style is the simplest and most secure way to invest.
The problem with many is that they go 100% into an asset instead of chopping it up with several timely equal parts.
Here we will see a technique to chop our investment cap into two equal part and buy at different points. The average level will be (buy-point 1 + buy-point 2) / 2.
Now. If price moves up again and back to buy-point 1, you have easily made profit.
If price continues to move up from buy-point 1, you have made a higher profit.
If it however dumps, you must sell at buy-point 2 (stop loss) to reduce the loss. Below this point is critical. Then loss will be heavy. Better sell and wait for a better point to re-enter.
The problem with many is that they go 100% into an asset instead of chopping it up with several timely equal parts.
Here we will see a technique to chop our investment cap into two equal part and buy at different points. The average level will be (buy-point 1 + buy-point 2) / 2.
Now. If price moves up again and back to buy-point 1, you have easily made profit.
If price continues to move up from buy-point 1, you have made a higher profit.
If it however dumps, you must sell at buy-point 2 (stop loss) to reduce the loss. Below this point is critical. Then loss will be heavy. Better sell and wait for a better point to re-enter.
Note
I got several questions about WHAT IF PATTERN IS UPWARD?Note
Other useful tips asked by fans:Note
This is an example of one of my real trades. Notice my timeframe 15 min. Notice how I set stop loss at -3% instead of -2% so I don't miss the continous uptren confirmed by other indicators. I set profit target +5%. So my Profit-fail ratio = 5/3 = 1.66. Over time I will make x1.66 return on my trades.Note
I want to share with you another Advice of Gold:If you want to double your money, make small steps. 5% gains for x20 times gives you a double x2 from initial capital.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.