What to do if the price doesn't rise immediately after buying?
Some people like to average down, but the more they average down, the worse it gets.
When should you average down? What should you pay attention to when averaging down?
1. The price is above the EMA 5-day line, and the 5-day line is above the 10-day line.
(1) If you are holding a losing position and it hasn't exceeded 3 points, you can skip averaging down; if it falls back to the 5-day line and does not break below, it will rise again, giving a chance to break even or profit.
(2) If it exceeds 3 points, you can average down at the 5-day line price to lower the cost to close to the 5-day line, increasing the probability of breaking even or making a profit.
2. The price is between the 5-day line and the 10-day line, and the 5-day line is above the 10-day line.
(1) If the price breaks below the 5-day line and there is no stop-loss at the first moment, if you still have a positive outlook on the market, you can average down when it retraces to the 10-day line to lower the cost to below the 5-day line; if it rebounds and breaks through the 5-day line, hold your position for a rise.
(2) If it breaks below the 10-day line, if you still have a positive outlook and are patient for mid to long-term holding, you can average down in batches after it moves away from the 10-day line by more than 5-10 points. This will lower the cost to close to below the 10-day line, waiting for a rebound to the 10-day line to sell the averaged down position.
3. The price is below the 5-day line and the 10-day line, and the 5-day line is crossing down or about to cross down the 10-day line.
(1) If you are holding a losing position and the 5-day line crosses down the 10-day line, then when it drops to the 30-day line, you can average down near the life line to lower the cost to below the 10-day line. If it rebounds and breaks through the 10-day line, while the 5-day line crosses up, you can continue to hold.
