Averaging the Entry Price: How to Reduce Losses and Improve Chances 🚀

If the price of $PNUT has fallen from your initial purchase level, an effective strategy to reduce losses and regain ground is to average the entry price by purchasing more tokens at a lower price. Here's how to do it:

📊 Practical Example:

1. Initial Purchase:

• You bought 100 PNUT at $1.88.

• Total cost: $188.

2. The Price Drops:

• Now, $PNUT is trading at $1.32.

• You decide to buy another 100 PNUT at this price.

• Additional total cost: $132.

3. New Average Price:

We use the formula:

Total Cost / Total Quantity

= ((100 x $1.88) + (100 x $1.32)) / 200

= ($188 + $132) / 200

= $1.60 per PNUT.

📈 Benefit of Price Averaging:

• Before: To break even you needed to sell at $1.88 or higher.

• Now: You only need the price of $PNUT to rise to $1.60 to break even or higher to make a profit.

This reduces your risk and improves your chances of profiting from an eventual price recovery.

⚠️ Important Considerations:

• Risk Management: Only average price if you have confidence in the project and believe in its long-term recovery.

• Controlled Budget: Avoid investing more than you can afford to lose, even if the price looks attractive.

• Avoid Excessive Leverage: This approach works best in spot trading; do not combine it with leveraged positions without a clear strategy.

🌟 Conclusion:

Averaging the entry price is a powerful tool to reduce losses and turn an unfavorable situation into an opportunity. However, use it with discipline and prior analysis. The market always offers second chances! 💹

$PNUT and any token can be handled intelligently if you focus on well-informed solutions and strategies. 🚀