$BTC $NOT $FET
š“ Dollar-Cost Averaging (DCA) Strategies š“
There are two types of DCA (Dollar Cost Averaging) strategies that traders use:
1ļøā£ DCA into Something When It Drops Down to a Key High Timeframe Zone
2ļøā£ DCA into a Losing Trade
š“ 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.
š“ 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.