In the field of spot trading in the cryptocurrency market, buying in batches is an operational strategy with many advantages. Batch buying can effectively avoid the risk of entering at a mid-range price. When we conduct multiple buying operations, as the price gradually declines, we can gradually increase the purchase volume, allowing us to accumulate enough chips when the price is low. Once the price rebounds, the recovery speed will be faster, and we can achieve considerable profits when the price rises.
However, this strategy is not without its drawbacks. If the price rises immediately after the first purchase, due to the small quantity bought initially, there is a high chance of missing out on a great profit opportunity. However, this risk is somewhat acceptable. Just like in the stock market, opportunities are never scarce; even in extremely poor market conditions, many stocks can easily double in price. Therefore, when investing, it is better to miss a profit opportunity than to act impulsively. As long as the principal is protected, there will still be opportunities later.
From the perspective of investors building positions, if the batch building method is used, one can start with a light position for testing and then gradually increase the position size, which increases the likelihood of making a profit. Taking spot gold trading as an example, investors choosing to build positions in batches mainly have two significant benefits. Firstly, it can prevent all trading orders from suffering significant losses at once. Of course, if investors have sufficient funds and are extremely accurate in market judgment, they can attempt to take risks without batch building, but this requires caution. Secondly, batch building helps investors obtain more favorable price points, unless encountering a one-sided market. Overall, investors in spot gold trading are more suited to adopt a batch building investment strategy, which can reduce risks to a certain extent and seize more investment profits.
Therefore, investors should not always try to enter the market in one go by accurately pinpointing a price level. Although batch building may lead to situations where the first order is profitable while subsequent orders cannot be executed due to price changes, resulting in less profit, the overall outcome is still profitable. After all, most market conditions do not yield immediate profits upon entry; often, prices fluctuate first after entering, such as a slight drop before starting to make a profit, or being stopped out shortly after entering.
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