Dynamic position management: Why you should be more cautious when adding more as it drops—not blindly bottom-fishing?

📉 Your account is underwater, and many people like to “buy more the lower it goes” to average down their cost. This may work in spot trading, but in derivatives it’s suicide.
Why?
Because leverage exists in contracts. Adding positions in a downtrend multiplies your risk. Once you hit extreme market conditions, you’ll get liquidated straight away.
The correct way to add positions:
1. Only add when you’re in profit: When your first trade makes money, it means you were right. Adding positions then is riding the trend.
2. Keep the stop-loss in sync after adding: The total stop-loss after adding must still not exceed your per-trade risk limit.
💡 Today’s quote: Never add to a losing trade—that’s adding fuel to the wrong fire. $ETH ‌