$BTC $NOT $FET
🔴 Dollar-Cost Averaging (DCA) Strategies 🔴
There are two types of DCA (Dollar Cost Averaging) strategies that traders use:
1️⃣ DCA into Something When It Drops Down to a Key High Timeframe Zone
2️⃣ DCA into a Losing Trade
🔴 The Pitfalls of DCA into a Losing Trade
The worst thing a trader can do is DCA into a losing trade. Most do this because they just want a bounce from the price so that they can exit at break even.
Try not to add into a losing trade unless you're absolutely sure that you're doing it right. If your mindset is to get a bounce to exit at break even, you should better take that loss.
🔴 Have an Invalidation Plan
Always have an invalidation plan for your trade and cut it once it's invalidated.
Stay disciplined and follow these strategies to manage your trades effectively.