𝐓𝐫𝐚𝐝𝐢𝐧𝐠 𝐑𝐢𝐬𝐤: 𝐓𝐡𝐞 𝐃𝐚𝐧𝐠𝐞𝐫 𝐨𝐟 𝐀𝐯𝐞𝐫𝐚𝐠𝐢𝐧𝐠 𝐃𝐨𝐰𝐧

Averaging down feels logical. It is risk stacking.

𝐇𝐨𝐰 𝐢𝐭 𝐬𝐭𝐚𝐫𝐭𝐬:

Enter

→ Price moves against the trade

→ A second entry feels “cheaper”

→ Risk quietly doubles

→ Invalidation is ignored

𝐖𝐡𝐚𝐭 𝐢𝐭 𝐫𝐞𝐚𝐥𝐥𝐲 𝐦𝐞𝐚𝐧𝐬:

→ Hope replaces planning

→ One idea dominates exposure

→ Exit becomes emotionally impossible

𝐇𝐨𝐰 𝐢𝐭 𝐡𝐮𝐫𝐭𝐬 𝐭𝐫𝐚𝐝𝐢𝐧𝐠:

→ Small losses turn into large ones

→ Drawdowns deepen fast

→ Capital gets trapped

𝐇𝐨𝐰 𝐩𝐫𝐨𝐬 𝐚𝐯𝐨𝐢𝐝 𝐢𝐭:

→ Risk is defined before entry

→ Adds are planned, not reactive

→ Wrong trades are exited, not defended

𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲:

Adding to a loser multiplies mistakes, not edge.

$SOMI $PIPPIN $RIVER

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