#CreatorPad

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 do not accurately know the market direction.

We start buying from the first potential support, and if the price drops, we buy at every stronger support below it. This way, we reduce the average purchase price, and during a slight recovery, we can exit with a small profit or 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 rebounded to only $0.70.

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.

In summary:

This method is suitable if you suspect the price will drop slightly before recovering, provided that you choose a strong coin or an effective support area, and you are disciplined in capital management.

#BTC# $BNB