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When the market is volatile, many people fall into a quagmire of losses and don't know how to turn things around. Actually, the solution is simple—buy more when it falls, sell when it rises. It sounds easy, but few can actually execute it.
Let's take SOL as an example. Suppose it drops by 1 point today; then add 200 units. If it continues to drop by 2 points tomorrow, add 400 units. Continue this pattern downward. What if it rises instead? If it rises by 1 point, sell 200 units; if it rises by 2 points, sell 400 units. What's the benefit of this approach? It ensures you always have ammunition, avoiding a full margin call that leaves no room for maneuver.
Many people fall into this trap: losing money and only increasing their position, not realizing that they should sell when the price rises. The result? Keep adding until they run out of money and bullets, then can only watch the rebound helplessly. This is a big mistake.
The core logic is actually quite straightforward. When the price drops by 1%, you add 200 units; the next day, when it rises by 1%, sell those 200 units. This way, you only capture the 1% increase, which is your profit. Taking this profit is equivalent to earning.
But don't overlook a detail—the issue of transaction fees. This strategy is only worthwhile when fees are zero or very low. Because the 200 units you sell belong to your previous position, and according to FIFO (First-In, First-Out), the earlier purchased parts are fee-free, ensuring your profits are truly secured. If fees are high, even the best strategy will be significantly affected.
In simple terms, this method involves continuously fine-tuning your position during sideways markets—neither overbet nor missing opportunities. As long as you stick to this approach, the days of turning losses into profits are not far off.