💡 Dollar Cost Averaging (DCA):
Essence:
You buy an asset regularly for a fixed amount, without guessing where the "bottom" is.
🔐 Add stop-losses to this – and you get a powerful protection strategy:
❗What is a stop-loss?
It is an automatic order to sell an asset if its price falls below a set level. It works like "insurance".
✅ Combo strategy: Averaging + Stop-loss
📅 Regularly buy the asset (once a week/month).
📉 Lower the average price on declines – wisely.
🛑 Set stop-losses on each purchase or for the entire position:
🔹 It can be a fixed % (for example, -15%)
🔹 Or based on important support levels 🔍
💡 Upon hitting the stop – realize the loss, but do not lose control.
🔁 If desired – enter again, at a new price, with a new volume.
🧠 Principle:
Average – but with protection. A stop-loss prevents losses from getting out of control.
⚠️ Important to remember:
❌ Do not set the stop too close – it may get "taken out".
✅ Better less often – but with more confidence.
💰 Do not risk the entire amount at once – partial trading + risk control.