#AppleCryptoUpdate
Buying Strategy at Potential Support with Trade Management through Averaging Down
Average Down Strategy
This strategy relies on entering a trade gradually instead of buying all at once, especially when we are not sure of the market direction.
We start buying from the first potential support, and if the price drops, we buy at each stronger support. This way, we reduce the average purchase price, and with a slight recovery, we can exit with a profit or a small loss.
Practical Example:
The price was at $1.00, so the trader started buying:
Bought the first batch at $1.00
Then the second batch at $0.70
And the third at $0.60
And the fourth at $0.50
After that, the price bounced back to $0.70 only.
And although the price did not return to $1.00, the trader exited with a small profit, because the average purchase price decreased thanks to averaging down.
Summary:
This method is suitable if you suspect that the price will drop slightly before recovering, provided that you choose a strong currency or an effective support area, and you are disciplined in capital management.
