In the world of trading, strategies that repeat over and over are abundant. One of the best-known is to buy gradually in spot every time the price drops. It sounds logical: if the asset falls, you acquire it cheaper and reduce your average price. However, experience shows that this strategy is not always as effective as it seems, especially in the highly volatile ecosystem of cryptocurrencies.
📉 The problem of buying on the decline
The theory says: 'if it drops, I buy more.' But in practice, many traders discover that the asset they trusted never recovers.
The result:
An increasingly larger position in the red.
A loss that multiplies with each new purchase.
Psychological stress from seeing the portfolio not recover.
And, in many cases, the inability to recover after a bad decision.
This is not a hypothesis. It's something I've personally experienced and that happens to thousands of traders: what began as a strategy to 'take advantage of discounts' ended up being an increase in losses and an emotional trap that's hard to overcome.
📈 The alternative: buy when you win, not when you lose
Instead of buying when the asset drops, the proposal is to do the opposite: buy gradually when the price rises and your operation is in your favor.
This variant is known as pyramid up or bullish pyramid, and it has a great advantage:
If the asset keeps rising, each new purchase amplifies the gains.
If a pullback occurs, it is protected with a tight stop loss that secures part of the gains.
The difference is staggering: in one case, it builds on losses hoping for a miracle; in the other, it strengthens a winning position and secures capital.
⚡ The correct mindset of the trader
Trading is not a matter of hope, but of probabilities. And if an asset is showing strength, the best way to take advantage is to follow that trend, not fight against it. Buying on the rise with a controlled staggered strategy can make the difference between a portfolio in the green and one sunk in losses.
✅ Conclusion:
Don't stick to traditional strategies just because everyone repeats them. Analyze, question, and adapt. In trading, often the opposite of what is popular is what truly generates profitability.
🔔 If you want more analysis, real strategies based on personal experience, and real-time opportunities, follow me on Nómada Cripto and always stay one step ahead in the market.
