Share accumulation and a revelation I just had

[BackInTheGame78]

So my ultimate goal is to accumulate shares of various Crypto. However there have been a few buys that I am trapped in right now because I bought them higher and they have fallen. However, my actual goal is to accumulate as many shares as possible.

I just realized I may be making a huge fundamental math mistake that could have cost me tens of thousands of dollars already.

So an example... let's say I spent $500 and bought 400 shares of something for $1.25. I put a stop loss in at a hard 5% which is $1.1875. Let's say it hits that and I sell out, losing $25 and now having $475.

Then let's say it drops to $1.15. I spend $475 and get 413 shares. I swear that doesn't make sense at first but that has to be right...

So theoretically if you are trying to accumulate as many shares as possible, it is irrelevant where you buy something and sell something at...sell the shares you bought and buy them lower and you end up with more shares. Which can eventually offset the higher price you bought them at or potentially even double or triple the number of shares you have without it ever reaching the original price you bought it at.

Is this accurate? Have I been exceptionally dense? If so this changes everything!! I can accumulate thousands of shares a week doing this.

 

[King Lion]

It's best to start a position by 'Legging in' with just a fraction of the shares you eventually want to accumulate.

Trader practice is 1/6. If/when the price drops then add a second tranche of 1/6 shares.

The reason is that a moving average in price will rarely exceed 6 legs down and will generally show a reversal by that point.

Accumulating shares in this way will allow you to break-even and/or reach profitability sooner.

 

[BackInTheGame78]

It's best to start a position by 'Legging in' with just a fraction of the shares you eventually want to accumulate.

Trader practice is 1/6. If/when the price drops then add a second tranche of 1/6 shares.

The reason is that a moving average in price will rarely exceed 6 legs down and will generally show a reversal by that point.

Accumulating shares in this way will allow you to break-even and/or reach profitability sooner.

I am simply talking about accumulating shares by buying/selling the ones I already have without spending anymore money

 

[metalwater]

So my ultimate goal is to accumulate shares of various Crypto. However there have been a few buys that I am trapped in right now because I bought them higher and they have fallen. However, my actual goal is to accumulate as many shares as possible.

I just realized I may be making a huge fundamental math mistake that could have cost me tens of thousands of dollars already.

So an example... let's say I spent $500 and bought 400 shares of something for $1.25. I put a stop loss in at a hard 5% which is $1.1875. Let's say it hits that and I sell out, losing $25 and now having $475.

Then let's say it drops to $1.15. I spend $475 and get 413 shares. I swear that doesn't make sense at first but that has to be right...

So theoretically if you are trying to accumulate as many shares as possible, it is irrelevant where you buy something and sell something at...sell the shares you bought and buy them lower and you end up with more shares. Which can eventually offset the higher price you bought them at or potentially even double or triple the number of shares you have without it ever reaching the original price you bought it at.

Is this accurate? Have I been exceptionally dense? If so this changes everything!! I can accumulate thousands of shares a week doing this.

That's right, but still have the same old problem of being able to predict the price ahead of time. How can you know that the price will drop to 1.15. But yes, in what you told you are ahead but can not predict the 1.18 to 1.15, it might have changed to 1.50 instead, in that case, you would have been sad.

Look up dollar-cost averaging. You will have less chance to lose and less chance to win; smoother and calmer growth.

 

[BackInTheGame78]

That's right, but still have the same old problem of being able to predict the price ahead of time. How can you know that the price will drop to 1.15. But yes, in what you told you are ahead but can not predict the 1.18 to 1.15, it might have changed to 1.50 instead, in that case, you would have been sad.

Look up dollar-cost averaging. You will have less chance to lose and less chance to win; smoother and calmer growth.

It's actually surprisingly easy in crypto. You can see the trend indicators and watch the candlestick patterns. Can't always be sure of how long it will last but there are typically at least 3 or 4 of those run ups/run downs in a day. That's why this works far better with crypto than with stocks.

That's why you are doing it while watching preferably, so you can see when it is about to turn

 

[jaygreenb]

So my ultimate goal is to accumulate shares of various Crypto. However there have been a few buys that I am trapped in right now because I bought them higher and they have fallen. However, my actual goal is to accumulate as many shares as possible.

I just realized I may be making a huge fundamental math mistake that could have cost me tens of thousands of dollars already.

So an example... let's say I spent $500 and bought 400 shares of something for $1.25. I put a stop loss in at a hard 5% which is $1.1875. Let's say it hits that and I sell out, losing $25 and now having $475.

Then let's say it drops to $1.15. I spend $475 and get 413 shares. I swear that doesn't make sense at first but that has to be right...

So theoretically if you are trying to accumulate as many shares as possible, it is irrelevant where you buy something and sell something at...sell the shares you bought and buy them lower and you end up with more shares. Which can eventually offset the higher price you bought them at or potentially even double or triple the number of shares you have without it ever reaching the original price you bought it at.

Is this accurate? Have I been exceptionally dense? If so this changes everything!! I can accumulate thousands of shares a week doing this.

In crypto, I would take it one step further and value all your coins in bitcoin. Make that your unit of account. With all the stimulus USD is increasingly not an accurate measure. In a high inflation environment assets will often go up but many don't keep up with the inflation rate, so your real value relative to purchasing power has gone down.

 

[BackInTheGame78]

Killing it using my system I have set up. Works in every market, under all conditions because it simply uses indicators, alerts and my technical analysis to determine entry and exit points following the natural ebb and flow. You buy when the market is near the bottom and you get an upswing alert and sell when the market is near the top and you get a downswing alert.

You can also sell and buy the dips to enhance it further. Exciting times to watch as the market tanks and you have nothing in it and then buy back in and get hundreds or in some cases thousands of more shares for the same money and then rinse and repeat.