Tips for Averaging Down:
Understand the operation of "buying more as prices drop" in 10 seconds!
I. 3 Key Principles for Averaging Down
Principle 1: The trend is your father; averaging down against the trend = giving away your head
• Key saying:
“Averaging down in a downtrend is like shouting ‘buy more’ on the way down from a building — BTC drops to $30,000, and the more you average down, the more you lose, while the market makers laugh crazily! Only average down on the types that your father approves (when there’s a pullback in an uptrend or at the floor price in a sideways market)!”
Principle 2: Position sizing, don’t go all in like a fool
• Life-saving mantra:
“Add 1 unit when it drops 10%, add 2 units when it drops 20%, add 3 units when it drops 30% — but don’t exceed 30% in a single asset, otherwise, if the market makers drop it 50%, you’ll be kneeling!”
Principle 3: Stop-loss to protect your capital, don't be a fool begging to break even
• Soul-crushing truth:
“Averaging down without a stop-loss = running naked into a bear market — Averaging down BTC to $10,000? Immediately cut your position, don’t wait for the market makers to take your lifeline!”
II. 2 Major Techniques to Avoid Pitfalls in Averaging Down
Technique 1: Don’t average down on “scam coins”
• Aggressive definition:
“Scam coins = products with no ecosystem, no technology, and no consensus — like $SHIB, which can drop 90% and then drop another 90%, you average down on it? You might as well just burn money to keep warm!”
• Pitfall guide:
“Only average down on BTC/ETH or leading coins in mainstream sectors (AI, DeFi) — Shitcoins? Forget it!”
Technique 2: Don’t use your life savings to average down
• Soul-crushing truth:
“Averaging down using rent money = using your wife’s savings as firewood — BTC drops to $20,000, are you going all in with your living expenses? If it rises, it’s pure luck; if it drops, you’ll be sleeping on the street!”
• Life-saving rule:
“Averaging down funds ≤ 30% of total capital — if it drops, it won’t hurt too much, if it rises, you’ll make a little profit; steady as an old dog!
【Aggressive Three-Word Mantra for Averaging Down】
“Father approves, average down in batches, use stop-loss, avoid scam coins, preserve capital!”
(Can’t do it? Then wait to be harvested by the market like leeks, and let the market makers showcase the performance art of “the more you average down, the more you lose”!)