Do you know which type of person is most likely to get liquidated?
It's not the beginner, but rather those who, the more they lose, the more they want to add.
I used to be like that too.
Clearly, I was already losing, yet I stubbornly held onto my position, throwing in more money at every rebound, calling it "faith-based averaging down."
As you might guess: the more I added, the deeper I went, and the worse it got.
It wasn't until I got completely wiped out that I finally realized:
Averaging down is not about increasing faith; it's about increasing win rate.
Since then, I only use one method for averaging down:
▶ Profitable averaging down + simultaneously moving up stop-loss
I call it "profit nurturing, risk reduction."
What does that mean?
Simply put, the first part is about direction, and the second part is about timing.
Make money on the first part, amplify gains on the second part, but never let risk pull back.
That's why my account now has minimal drawdown but is growing rapidly.
Many people ask me after I turn my account around: "How did you average down?"
I only reply with one sentence:
It's not about going all-in to make a comeback; it's about rolling with the rhythm.
But how to roll, where to roll to, when to add, when to lock in
If you haven't figured out this rhythm, you'll still end up losing.
These things can't be explained clearly; you can only copy the homework!!!
