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williamz902

Dilute Your Stock - A Tip for Traders

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Let's suppose that you bought a coin when the price was too high and the price is now starting to drop. If you sell, you are going to make a loss. So what do you do?

You buy some more at a lower price!! It sounds crazy, but buying more at a lower price will dilute the price of the more expensive purchase. When the price starts to go up again, you won't have to wait so long for it to start making a profit. Let's take an example:

Suppose you bought 500 Siacoin (SC) for 100 satoshis each, and then the price dropped down to 60 sats.
If you buy another 500 Siacoin at the new price of 60, it means the average price for all 1,000 coins is now 80 satoshi each.

Therefore, you only have to wait for the price to climb above 80 to start making a profit again. This is one way to minimize your losses. It might sound crazy, and many people don't think of buying more of the same coin when they are experiencing a loss. To be successful, you can't trade with emotion. You have to make calculated decisions and trust that the math is correct.

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48 minutes ago, williamz902 said:

Let's suppose that you bought a coin when the price was too high and the price is now starting to drop. If you sell, you are going to make a loss. So what do you do?

You buy some more at a lower price!! It sounds crazy, but buying more at a lower price will dilute the price of the more expensive purchase. When the price starts to go up again, you won't have to wait so long for it to start making a profit. Let's take an example:

Suppose you bought 500 Siacoin (SC) for 100 satoshis each, and then the price dropped down to 60 sats.
If you buy another 500 Siacoin at the new price of 60, it means the average price for all 1,000 coins is now 80 satoshi each.

Therefore, you only have to wait for the price to climb above 80 to start making a profit again. This is one way to minimize your losses. It might sound crazy, and many people don't think of buying more of the same coin when they are experiencing a loss. To be successful, you can't trade with emotion. You have to make calculated decisions and trust that the math is correct.

I agree with what you say, I also agree when we buy and sell, we have to think about it first, we can regret what we did for the coins so far we can become a very big tree

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On 10/15/2019 at 10:28 PM, williamz902 said:

Let's suppose that you bought a coin when the price was too high and the price is now starting to drop. If you sell, you are going to make a loss. So what do you do?

You buy some more at a lower price!! It sounds crazy, but buying more at a lower price will dilute the price of the more expensive purchase. When the price starts to go up again, you won't have to wait so long for it to start making a profit. Let's take an example:

Suppose you bought 500 Siacoin (SC) for 100 satoshis each, and then the price dropped down to 60 sats.
If you buy another 500 Siacoin at the new price of 60, it means the average price for all 1,000 coins is now 80 satoshi each.

Therefore, you only have to wait for the price to climb above 80 to start making a profit again. This is one way to minimize your losses. It might sound crazy, and many people don't think of buying more of the same coin when they are experiencing a loss. To be successful, you can't trade with emotion. You have to make calculated decisions and trust that the math is correct.

I fully agreed your explanation, in that way we can really minimize the losses, but in your illustration there is a small profit that  you get when you buy at 60 satoshi at got turned into 80 satoshi. In other word in the end patience was still the key for it. 

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4 hours ago, cryptokram said:

I fully agreed your explanation, in that way we can really minimize the losses, but in your illustration there is a small profit that  you get when you buy at 60 satoshi at got turned into 80 satoshi. In other word in the end patience was still the key for it. 

Yes, the profit is small, and you have to wait, but at least you are not selling at a loss, and you don't have to wait as long for the price to reach 80 as you do for it to reach 100. You can further minimize this time by buying a lot more than double at the lower price - that will bring the average price down even more.


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On 10/15/2019 at 10:28 AM, williamz902 said:

Let's suppose that you bought a coin when the price was too high and the price is now starting to drop. If you sell, you are going to make a loss. So what do you do?

You buy some more at a lower price!! It sounds crazy, but buying more at a lower price will dilute the price of the more expensive purchase. When the price starts to go up again, you won't have to wait so long for it to start making a profit. Let's take an example:

Suppose you bought 500 Siacoin (SC) for 100 satoshis each, and then the price dropped down to 60 sats.
If you buy another 500 Siacoin at the new price of 60, it means the average price for all 1,000 coins is now 80 satoshi each.

Therefore, you only have to wait for the price to climb above 80 to start making a profit again. This is one way to minimize your losses. It might sound crazy, and many people don't think of buying more of the same coin when they are experiencing a loss. To be successful, you can't trade with emotion. You have to make calculated decisions and trust that the math is correct.

What you say is like doing a better average to the entry you had already done before so that the loss is not so settled, this I have used to do several times to vary some secondary entrance, it is interesting to do it but not very sure, since no You can break the rules we build ourselves.
 

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Yes, it is true that I use this strategy in some times, but sometimes it does not work because the price does not return to the areas that I bought from in the first time, but will go down more and you will lose twice

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It is a good idea, I often do that, when the currency is being depreciated, I am not in a hurry to sell, I will buy another currency that is also depreciating. I wait for it to go up and then I sell both and make a profit

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On 10/15/2019 at 5:58 PM, williamz902 said:

Suppose you bought 500 Siacoin (SC) for 100 satoshis each, and then the price dropped down to 60 sats.

If you buy another 500 Siacoin at the new price of 60, it means the average price for all 1,000 coins is now 80 satoshi each.

Therefore, you only have to wait for the price to climb above 80 to start making a profit again. This is one way to minimize your losses. It might sound crazy, and many people don't think of buying more of the same coin when they are experiencing a loss. To be successful, you can't trade with emotion. You have to make calculated decisions and trust that the math is correct.

This is an interesting method to cut losses but you can also wait until the price goes higher than 100 satoshi to sell your first 500 Siacoins and don't buy anymore. This will take longer to happen but you will lose less because there is no average and when the price reaches 120 satoshi as an example, all you sell is 100% profit. Patience is the best method most of the times.

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Well done dear, actually I have been using this strategy for a long time and it is very good and effective in most cases, even if you do not achieve much profit but at least you can reduce losses if the coin falls to the bottomless pit. Thank you.

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On 10/15/2019 at 4:28 PM, williamz902 said:

Let's suppose that you bought a coin when the price was too high and the price is now starting to drop. If you sell, you are going to make a loss. So what do you do?

You buy some more at a lower price!! It sounds crazy, but buying more at a lower price will dilute the price of the more expensive purchase. When the price starts to go up again, you won't have to wait so long for it to start making a profit. Let's take an example:

Suppose you bought 500 Siacoin (SC) for 100 satoshis each, and then the price dropped down to 60 sats.
If you buy another 500 Siacoin at the new price of 60, it means the average price for all 1,000 coins is now 80 satoshi each.

Therefore, you only have to wait for the price to climb above 80 to start making a profit again. This is one way to minimize your losses. It might sound crazy, and many people don't think of buying more of the same coin when they are experiencing a loss. To be successful, you can't trade with emotion. You have to make calculated decisions and trust that the math is correct.

What if price go till 40sat? :classic_biggrin:

I understand what you talking about and I agree, but you must to choose good altcoin to use this strategy and of course that you believe that the price will recover.

I already writing about this strategy and I think that is good like I say if you believe that coin/token will jump/rise.

For example this strategy was good for LTC before 1 month, and that you buy weekly LTC now you will have really good profit and not important on which market BTC or USD.

Again good strategy but you must to choose right coin/token.


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On 10/15/2019 at 5:28 PM, williamz902 said:

Let's suppose that you bought a coin when the price was too high and the price is now starting to drop. If you sell, you are going to make a loss. So what do you do?

You buy some more at a lower price!! It sounds crazy, but buying more at a lower price will dilute the price of the more expensive purchase. When the price starts to go up again, you won't have to wait so long for it to start making a profit. Let's take an example:

Suppose you bought 500 Siacoin (SC) for 100 satoshis each, and then the price dropped down to 60 sats.
If you buy another 500 Siacoin at the new price of 60, it means the average price for all 1,000 coins is now 80 satoshi each.

Therefore, you only have to wait for the price to climb above 80 to start making a profit again. This is one way to minimize your losses. It might sound crazy, and many people don't think of buying more of the same coin when they are experiencing a loss. To be successful, you can't trade with emotion. You have to make calculated decisions and trust that the math is correct.

It is not crazy thought as it is actually a trading tactic used by a lot of investors and traders. 

This needs of course to have confidence in your decision that the stock or crypto you bought is actually trying to create value by growing and developing. If there are fundamental reasons to believe in your trade then you should stick to it and also use this tactic as well to lower the profit limits.

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Yes, math is important in trading, and I also support the stock by buying it when it goes down and if it goes down more I buy more to sell it on a closer period when the rise occurs

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On 10/15/2019 at 7:58 PM, williamz902 said:

Let's suppose that you bought a coin when the price was too high and the price is now starting to drop. If you sell, you are going to make a loss. So what do you do?

You buy some more at a lower price!! It sounds crazy, but buying more at a lower price will dilute the price of the more expensive purchase. When the price starts to go up again, you won't have to wait so long for it to start making a profit. Let's take an example:

Suppose you bought 500 Siacoin (SC) for 100 satoshis each, and then the price dropped down to 60 sats.
If you buy another 500 Siacoin at the new price of 60, it means the average price for all 1,000 coins is now 80 satoshi each.

Therefore, you only have to wait for the price to climb above 80 to start making a profit again. This is one way to minimize your losses. It might sound crazy, and many people don't think of buying more of the same coin when they are experiencing a loss. To be successful, you can't trade with emotion. You have to make calculated decisions and trust that the math is correct.

Exactly this is good method. I have also done this two or three times when I bought ltc on high price but price suddenly fell and I was worried about it but then again I bought some more amount of ltc. And this trick helped me to recover my loss. Because ltc only rised above the price on which I made second purchase. So loss of first purchase was recovered by the profit of second purchase. But this is mostly helpful in bull run.

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It is an excellent plan to quickly reduce loss and offset profit in a short period and is really a good way to offset and is to buy at a lower price


THINK POSITIVE

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Buy in greater quantities when there is another decrease after you buy a currency, which causes you to reduce the loss quickly and exit from the transaction with minimal damage and possibly profits


 

Life is great and enjoy it

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Invest in with more substantial portions travelers have a different minimize when you finally get hold of a foreign exchange, which often causes you to reduce the burning quickly, also, to depart on the transaction having little deterioration even gains.

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this is a good point. The first instinct of any human when they see the price going down is to sell and get out, but your method does make sense to dilute the loss that you have. Also if the price increases later on you will make a huge profit with that coin. Thank you for sharing this with us.


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Для таких случаев я продолжаю держать биткойн и предпочитаю стратегию холдинга, которая довольно востребована.

Если валюта резко поднимается,я склонен оставаться держателем, чтобы узнать,поднимется ли она еще выше или так же резко упадет.

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Это хороший вопрос. Лично я торгую не монетами, а акциями, и мое первое правило-никогда не продавать в убыток. В худшем случае у вас есть некоторые акции, которые не стоят многого, но все же имеют возможность восстановить свои силы

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Это хороший вопрос. Лично я торгую не монетами, а акциями, и мое первое правило-никогда не продавать в убыток. В худшем случае у вас есть некоторые акции, которые не стоят многого, но все же имеют возможность восстановить свои силы

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I try to never sell coins at a low price. I never buy coins at a high, and then sell them at a low price. This is done at a loss to oneself. No profit, no profit on trading with cryptocurrencies.

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I don't believe in diluted technique. When prices go down, the loss is unavoidable. If you buy more of the same coin at cheaper price, it will not recover the money you lost in the first place. When the prices rise, your profit is only for the coins which were bought cheaper but the coins that were bought initially, will not give you any reward. This is not a diluted investment, this is just two separate investments with two different prices. When your coin falls, don't buy it again. Switch to another coin that has crashed recently and invest in it to compensate your losses.

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I personally focus on a few and do not regret it, yes a lot of time, yes it is difficult, but it brings profit and I am satisfied.

Edited by Demotach

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but that also needs for you to have a certain amount of money coming in every so often specially if the market keeps on coming down. I bought btcz at 36 sats sold at 70 sats, after that price kept falling all the way down to 0.5 satoshis, in this case your way of trading will have reck you anyway. so I sold and bought back again at a much lower price.

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Yes, math is important in trading, and I also support the stock by buying it when it goes down and if it goes down more I buy more to sell it on a closer period when the rise occurs

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